M2M players will become more specialized in 2014, focusing on a particular part of the value chain instead of trying to be all things to potential customers.
That is one of the headline predictions about the M2M market this year by Machina Research, which says M2M companies will stop spreading themselves so thinly in 2014 just as smaller mobile network operators begin to assert their position in the M2M market.
The market-research company also says the days of low volume, low revenue-generating sensor networks are passing and that a number of high-bandwidth M2M applications will emerge in 2014, generating higher average revenue per user for M2M players.
Nevertheless, Machina Research sees little revenue opportunity for companies pursuing big data analytics in M2M, saying “the big data analytics star will rise and fall” in 2014.
While there is value in having a monopoly on the right kind of data, or being able to use that data in a clever way, there is little to be gained from the actual analytic part of big data analytics, says Machina Research.
Ultimately, it expects the buzz around the ‘Internet of Things’ to reach a crescendo this year, with the “old stove-pipe M2M application approach … giving way to a more integrated approach to application development which draws from a wider range of data sources and stiches those together with more sophisticated applications”.
Although this development presents massive opportunities to M2M players, it also threatens to sideline companies that do not evolve appropriately.
Machina Research is also upbeat about the recent publication by the GSM Association of specifications for OTA provisioning of M2M SIMs.
It argues that customers will henceforth begin to move away from roaming-based services towards localized connectivity using remote provisioning, as service providers and operators offering these localization options resolve the necessary commercial arrangements.