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M2M Connections to hit 2.1 billion by 2022
Healthcare, Smart Utilities, Consumer Electronics, Vehicles and Smart Home all growth areas
Boston, MA - February 10, 2015 - A new study from Strategy Analytics, “M2M Connections by Industry Vertical and Bandwidth” predicts machine-to-machine (M2M) connections will grow from 368 million in 2014 to 2.1 billion by 2022. Much of the growth will be spurred on by the Asia Pacific region. The need for speed is also driving new adoptions: 75 percent of new M2M connections will be on 3G or faster networks by 2022.
Click here for the study
Not surprisingly, given the pent-up demand among the very large population, the Asia Pacific region will account for 55% of cellular M2M connections globally by 2022, followed by Western Europe and North America. High bandwidth connections (3G and 4G) will grow to 75% of all connections by 2022. Smart metering deployments in China continue to grow significantly. Overall smart metering is expected to remain one of the major areas for M2M growth globally, particularly in Europe and Asia.
Other highlights from the study indicate:
- Healthcare, Smart Metering and Utilities, Consumer Electronics and Smart Home will be the largest markets in 2015, with each of these segments posting double digit percentage compound annual growth rates (CAGR) ranging from 18 percent (smart metering/utilities) to nearly 29 percent (Home automation) between 2014 and 2022. Other markets such as vehicles and retail will also grow well over the forecast period.
- Installed high bandwidth connections in the Transportation market will post a CAGR of 32.7 percent from 2010 to 2022. However, high bandwidth connections in the Transportation vertical is an emerging market and coming from a relatively small base compared to more entrenched consumer segments. Nonetheless, high bandwidth connections in the Transportation sector will ramp up from three hundred thousand in 2015 to 2.6 million by 2022.
“It’s clear that M2M connections will remain an extremely kinetic segment over the next seven years, as users enthusiastically embrace device connectivity in those market segments that have the greatest impact on their everyday activities like: smart metering/utilities, healthcare and smart home automation,” said Andrew Brown, Executive Director of Enterprise Research at Strategy Analytics.
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