Menu
M2M opportunity in emerging markets, SME space: Analysys Mason

M2M opportunity in emerging markets, SME space: Analysys Mason

Price drops and customer increases to trigger growth from 2015

While operators are already generating strong revenue from machine-to-machine (M2M) - $US10 billion worldwide in 2013 – growth opportunities for the sector will occur in emerging regions as applications are tailored to local market and the cost of solutions declines, according to Analysys Mason.

In its ‘M2M device connections and revenue: worldwide forecast 2013 to 2023’, the analyst firm claims the number of M2M connections in emerging markets will begin to increase by 2015 as operators look to increase their number of connected customers, and costs decrease. This will also cause a decline in developed markets from 68 to 62 per cent during the forecast period.

The report indicates operators which have assembled the appropriate teams and resources will be poised for greater success as the emerging market begins to grow. Analysys Mason said operators in developed markets have learned it takes 18 months to organise the various aspects of an M2M business.

Operators in emerging markets are currently focused on the growth in the number of mobile handsets as running an M2M business carries a higher risk than a traditional mobile handset and broadband business, the firm said.

M2M solutions in the utilities, automotive and security sectors are predicted to be more easily understood business models by 2016.

The SME space

Analysys Mason predicts small to medium enterprises (SMEs) will be at the core of the increasing percentage in total M2M device connections.

Utilities sector (dominated by large enterprise purchases of M2M solutions and a large number of low-revenue connections) aside, the proportion of SME M2M connections will increase from 14.6 per cent of total connections in 2013, to 24.6 per cent ten years down the track. This represents a compound annual growth rate (CAGR) of 33 per cent.

Although affordability is more of an issue for SMEs than large enterprises and the public sector, Analysys Mason claims it will improve as M2M solutions become less expensive to implement at the application layer, and operators and service providers start offering off-the-shelf solutions. The cost of M2M hardware is also predicted to fall.

The analyst firm believes the opportunity for operators lies in selling security and surveillance, some healthcare solutions and some retail sector M2M solutions to SME buyers.


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags growthSMEanalystUtilitiesmachine to machineM2MAnalysys Mason

Featured

Slideshows

Kiwi channel closes 2017 with After Hours

Kiwi channel closes 2017 with After Hours

The channel in New Zealand came together to celebrate the close of 2017, as the final After Hours played out in front of a bumper Auckland crowd.

Kiwi channel closes 2017 with After Hours
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP honoured leading partners across the channel at the Partner Awards 2017 in New Zealand, recognising excellence across the entire print and personal systems portfolio.

Meet the top performing HP partners in NZ
Tech industry comes together as Lexel celebrates turning 30

Tech industry comes together as Lexel celebrates turning 30

Leading figures within the technology industry across New Zealand came together to celebrate 30 years of success for Lexel Systems, at a milestone birthday occasion at St Matthews in the City.​

Tech industry comes together as Lexel celebrates turning 30
Show Comments