North America’s M2M software and services market is expected to generate revenues of $788.4 million in 2018, up from just $175.4 million last year, according to new research from Frost & Sullivan.
The market-research firm says the increase will be driven by a number of factors, including the ability of enterprises to convert raw data into business insights, the growth of partnerships between systems and the demand for remote monitoring solutions for distributed assets.
“The increased value proposition of extracting proprietary raw data and converting it into business insights promotes new M2M applications in a variety of end-user segments,” said Muthuraman Ramasamy, an industry analyst with Frost & Sullivan.
“The impact of this driver remains high throughout the forecast period, as a number of emerging applications will surface in the M2M space owing to the vast amount of data obtained from an ever-increasing number of connected devices,” said Ramasamy.
Partnerships between network operators, device makers, platform providers and systems integrators will also fuel market growth by providing customers with a bigger selection of services, according to the company, with mobile network operators (MNOs) and MVNOs that facilitate communication between devices and software platforms playing a particularly significant role in the M2M market.
“The go-to-market strategy of direct sales will be replaced by a federated sales cycle, where device makers, platform providers and system integrators are partnering with these MNOs and MVNOs to provide a complete, holistic solution for the end user,” said Ramasamy.
Frost & Sullivan says that development will spur take-up of M2M across a number of vertical markets, with more partnerships being formed to cater to specific end-user segments.
The company also singles out remote monitoring as a key M2M application across various vertical markets, allowing enterprises to reduce service management costs.
“A number of vertical markets are seeing tremendous potential for remote monitoring,” said Ramasamy. “From monitoring assets in the oil and gas industry to remote health monitoring in the healthcare industry, the benefits of adoption are more clear to see.”