Wednesday, August 10, 2011

How Big Will the M2M Market Be in 2015?

The machine-to-machine and connected device market will reach 87 million endpoints by 2015, with a compound annual growth rate of over 25 percent, according to Compass Intelligence. There is an important caveat, however. As Compass Intelligence notes, “much confusion exists around what makes up M2M."

The GSMA includes devices such as connected iPads and other media tablets in the "M2M" category. Some tier-one service providers also include connected devices such as picture frames, personal navigation devices in the category. Some would say M2M really is intended to describe a service where a sensor communicates with a server, and not instances where a human user is using a relatively non-traditional mobile device. One suspects much of the early growth will come in the connected devices area, and not the sensor to server market that many of us consider the actual M2M opportunity.

The largest B2B vertical market is the transportation and distribution vertical, with over 30 percent market share, Compass Intelligence says.

By 2015 more than 40 percent of M2M connections in the U.S. could be running on 3G, 3.5G, or 4G networks.

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