M2M revenues to rise from $200 million to $1.2 trillion in ten years

Global M2M revenues will soar from $200 million in 2011 to $1.2 trillion in 2022, according to new research from Machina Research.

The revenue explosion will occur as the number of M2M connections rises from 2 billion at the end of 2011 to around 18 billion by the end of 2022.

Although short-range technologies – and mainly WiFi – will account for 73% of total connections, the number of cellular connections will grow from 146 million at the end of 2011 to 2.6 billion in 2022.

Global M2M revenues will soar from $200 million in 2011 to $1.2 trillion in 2022, according to new research from Machina Research.

The revenue explosion will occur as the number of M2M connections rises from 2 billion at the end of 2011 to around 18 billion by the end of 2022.

Although short-range technologies – and mainly WiFi – will account for 73% of total connections, the number of cellular connections will grow from 146 million at the end of 2011 to 2.6 billion in 2022.

By 2020, M2M connections will account for 22% of total cellular connections, up from just 2% at the end of 2011.

But Machina urges operators to think about more than just providing basic connectivity.

“Of the $400 billion M2M services revenue, just $9 billion will come from the provision of basic cellular connectivity,” said Jim Morrish, a director at Machina Research. “There are much richer rewards available to mobile operators who can expand their offering beyond the provision of connectivity. This MNO pursuit of the full service revenue will be a defining characteristic of M2M in the next three to five years”.

Although Machine thinks nearly 10% of services revenues will come from the provision of connectivity, it says around $29 billion of this figure will be generated by service enablement.

Devices and installation will account for two thirds of overall M2M revenues.

Machina says the most important sector for the cellular industry is automotive, accounting for 60% of connections.

Geographically, the most important M2M markets by 2022 will be China and the US, accounting for 20% and 19% of total M2M connections respectively.