M2M software platform revenues to hit $3.85 billion by 2017

Two types of software platform that underpin the development of the M2M market are forecast to generate $3.85 billion in revenues by 2017, according to a new report from ABI Research.

Application Development Platforms (ADPs) and Connected Device Platforms (CDPs) are becoming critical parts of the M2M ecosystem. AEPs reduce the amount of time it takes to develop M2M applications, while CDPs automate the management of M2M module connectivity, which is of crucial importance in such a low-ARPU market.

Two types of software platform that underpin the development of the M2M market are forecast to generate $3.85 billion in revenues by 2017, according to a new report from ABI Research.

Application Development Platforms (ADPs) and Connected Device Platforms (CDPs) are becoming critical parts of the M2M ecosystem. AEPs reduce the amount of time it takes to develop M2M applications, while CDPs automate the management of M2M module connectivity, which is of crucial importance in such a low-ARPU market.

CDPs also provide connectivity monitoring, real-time charging and policy control and can be integrated with existing BSS and OSS platforms.

“Custom development and islands of functionality characterize the current M2M market,” said Dan Shey, M2M practice director at ABI Research, in a statement. “AEP and CDP platforms intend to provide more ‘horizontal’ capabilities that will expand the supplier base, end-user markets and ultimately facilitate a more connected planet.”

Craig Foster, a principal analyst, added: “Operators will play important roles in driving the market moving forward. Operators, particularly in North America and Western Europe, have a strong position in the CDP market, many with self-built CDPs.”

“They are also seeking to move into the AEP market as it is potentially a more lucrative portion of the M2M value chain,” he explained. “But operator growth in the M2M market also means building roaming alliances and partnerships with other operators for their international customers.”