By the end of 2011, most major mobile operators in North America, Europe, and the Asia-Pacific region had established M2M business units, in part because of a belief that connections will rise from about 110 million in 2011 to approximately 365 million connections by 2016.
The caveat is that some observers consider tablet, e-book and mobile PC connections to be M2M, while others do not.
Still, the 27 percent compounded annual growth rate between now and 2016 and translates to about $35 billion in connectivity services revenue.
The two largest cellular M2M market segments over the forecast period, by revenue, will be automotive telematics and smart energy.
Automotive telematics, including factory-installed systems such as GM’s OnStar service, aftermarket services such as usage-based insurance, and fleet management systems, will together represent more than $15.5 billion in 2016, according to ABI Research.
Meanwhile, smart energy, specifically cellular connectivity to smart meters and data concentrators, will represent more than $7.5 billion in 2016. M2M
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