The global M2M industry is expected to generate some $290 billion in revenues in 2017, up from just $44 billion this year, according to new research from MarketsandMarkets.
The research company predicts that revenues will grow at a compound annual rate of 30.1% over the next five years as companies take advantage of new M2M opportunities.
MarketsandMarkets lists Alcatel-Lucent (Paris, France), AT&T (Dallas, USA), Cisco (San Jose, USA), Intel (Santa Clara, USA), IBM (New York, USA), Huawei (Shenzhen, China) and Gemalto (Amsterdam, the Netherlands) as some of the key players that will shape M2M in the years ahead.
By networking objects and devices in a so-called ‘internet of things’, M2M communications are expected to transform the ways that companies do business and people conduct their lives.
In M2M, devices and sensors are installed in everyday items that are then connected to the internet using wired and wireless networks.
Sensors can be installed relatively easily in residential buildings, workplaces and public places.
According to MarketsandMarkets, the major challenges for the M2M industry are in establishing global ubiquitous networks offering two-way connectivity.
The research company says that architectural designs for the ‘internet of things’ will need to support efficient two-way caching and data-synchronization techniques, as well as network-connected endpoints that can be used to monitor the location, state and condition of devices.