M2M Growth: Reality Check on the Rise of the Machine

K. Weldon
K. Weldon

Summary Bullets:

  • Enterprises deploying M2M solutions do not necessarily look to cellular; WiFi, Bluetooth, and Zigbee may be more cost-effective inside buildings, and wireline connections still make sense for many fixed devices.
  • M2M continues to grow, but the ecosystem has a lot of work to do to reach the huge numbers of predicted devices.

The M2M market is growing; there seems to be no doubt about that.  In fact, in comparison with other technology areas, the growth rates seem pretty healthy, with CAGRs of 25% typically reported by carriers and module manufacturers.  However, while M2M is often tied to the cellular industry, the reality is that only about 30% of the connections that make up today’s worldwide installed base of M2M devices are cellular.  Cellular connection numbers are still small, with an installed base of about 80 million mobile connections today.  In addition, M2M bandwidth requirements remain low, and the vast majority of cellular M2M applications today are comfortably served by 2G networks. Continue reading “M2M Growth: Reality Check on the Rise of the Machine”