ID: MRFR/SEM/2530-HCR | February 2021 | Region: Global | 100 pages
The global machine-to-machine (M2M) connections market is emerging at a rapid pace over the years and will project to optimum levels in the upcoming times. The machine-to-machine (M2M) connections market valuation is estimated to attain USD 27.05 billion approximately towards the end of the year 2023 with a CAGR of 9.9 percent during the forecast period (2017-2023).
Machine-to-machine (M2M) connections industry allows access to transform industries and creates numerous opportunities for the vendors of M2M connections all across the globe. Along with the progression of the M2M connections market, the internet of things (IoT) is also making an immense growth in the global market. The internet of things mainly comprises of computer and human connected observations and machines communicating with one another, which shapes the machine-to-machine (M2M) connections market growth. The advancements of the Internet of things in analyzing and working on resulting big data explosion have also led to the expansion of machine-to-machine (M2M) connections industry size.
According to the market forecast, the short-range technology is expected to dominate the M2M connections market. In the year 2017, the short-range technology is observed to be connected to almost 73 percent of the M2M devices. Such technologies like Wi-Fi mostly connect with these machine-to-machine communication devices. The wireless wide area network or WWAN connections will emerge from USD 750 million in the year 2017 to USD 2.6 million by the end of 2023. As per the machine-to-machine (M2M) connections industry analysis, the most important sector of WWAN is the automotive industry which includes e-call, pay-as-you-drive insurance, tracking, and security.
At the end of 2017, the machine-to-machine (M2M) connections industry share accounted for around 15 percent of the cellular connections, which towards the end of 2023 will reach around 22 percent. The rapid developments in the market trend enable to elevate the growth of the market to a greater extent.
The report provides an analysis of the machine-to-machine (M2M) connections market structure and gives an idea about the anticipated market valuation and growth rate in the forecast period. It describes the impact of the COVID19 on the machine-to-machine (M2M) connections industry. A brief explanation is provided about the market dynamics along with the restraints and opportunities for the machine-to-machine (M2M) connections industry growth. It includes several segments and sub-segments of the market and also describes the key market players that have the most control of the M2M connections market. The report puts light on different geographies that can influence the market growth in the forecast period.
The COVID19 outbreak has adversely impacted the economy worldwide, and the growth rate has stooped down to lower limits. It will take years furthermore to regain the momentum of the economy and coming back to normal growth. The working sector and businesses faced many challenges and remained closed during the pandemic, which caused severe financial losses. The lockdown measures forced the closure of industrial functions and production units for an undeclared time period. This has disturbed the complete supply chain and broadened the demand to supply gap. However, the global market sustained in these adverse circumstances and maintained a stable growth rate.
During the pandemic, people mostly remained at home, which escalated the dependence on technology. Moreover, many companies allowed employees to work from home, which increased the usage of the internet and elevated the global market demand. The major shift towards technological advancements has boosted the growth of the global market and will also prompt the potential of the market in the near future.
The global market is surging rapidly over the years and will escalate to maximum limits in the upcoming years. The escalated adoption of the internet of things or IoT has enhanced the growth of the machine-to-machine (M2M) connections market share. Internet of things mostly includes computer-connected human observation and machine-to-machine communication, which shapes the market growth. The developments in the Internet of things help in analyzing and working on the resulting big data explosion, which is projecting the machine-to-machine (M2M) connections market growth.
As per the machine-to-machine (M2M) connections industry analysis, the short-range technology of the market is going to dominate the machine-to-machine (M2M) connections market share in the forecast years. In the year 2017, the short-range technologies, mostly Wi-Fi, were observed to be connected to almost 73 percent of machine-to-machine devices. All these reflect that the global machine-to-machine (M2M) connections market is escalating at a faster rate, and towards the end of 2023, it will rise to stupendous heights.
Machine-to-machine (M2M) connections industry is transforming industries and generating tremendous opportunities for the machine-to-machine module vendors, which expand the machine-to-machine (M2M) connections industry size. The wireless wide area network or WWAN connections will evolve from USD 750 million in 2017 to USD 2.6 billion by the year 2023. The most important field of the WWAN sector is the automotive industry that includes e-call, tracking, security, and pay-as-you-drive insurance.
With the increased adoption of machine to machine (M2M) services, the market growth will soon gain momentum. The cellular connections of the global machine-to-machine (M2M) connections market accounted for 15 percent market growth which will rise to 22 percent by 2022. All these developments in the various segments of the market will fuel the global market growth in the forecast years.
The coronavirus epidemic outbreak acted as a major restraint in the growth path of the global machine-to-machine (M2M) connections market. During the pandemic, industrial operations and the working sector remained closed for an uncertain time period which incurred immense financial losses. However, the machine-to-machine (M2M) connections market maintained a stable growth due to the increased shift towards the adoption of technologically advanced devices.
There is no doubt that the global market is reaching maximum heights due to innumerable opportunities. But the presence of certain limitations can restrict the growth of the global market. The security concern attached with a machine to machine connections can hinder the potential of the market and constraint the expansion of machine-to-machine (M2M) connections market size.
Value Chain Analysis
According to the machine-to-machine (M2M) connections market analysis, the revenue generated from the market over the last couple of years shows the rapid escalation in the market growth. The global market value will reach optimum levels in the coming years and is expected to exceed the previous historical growth rate. Towards the end of 2023, the machine-to-machine (M2M) connections industry share will attain its maximum momentum and soar up to greater heights.
The global machine-to-machine (M2M) connections market is divided into several segments on the basis of product, end-users, technology, and region. The market segmentation on the basis of product includes routers, wireless beacons, IoT and M2M modems, modules mobile point of sale, and others. On the basis of end-users, the market size segment comprises the automotive and transportation sector, government and defense, security and surveillance, consumer electronics, healthcare, retail, utilities, and many other sectors.
The market segmentation on the basis of product consist of Ethernet, cellular networks, wired technologies, industrial, short-range, wireless technologies, etc. On the basis of region, the global market segment includes North America, Europe, Asia-Pacific, and the remaining regions of the world.
The market analysis is studied in different geographical areas such as North America, Europe, Asia-Pacific, and remaining regions of the world. North America is anticipated to show the highest growth during the forecast period as 65 percent of the machine-to-machine services revenue is accounted for by the service wrap and almost 35 percent by the connectivity provision. The U.S. Machine-to-Machine (M2M) Connections makes North America the largest holder of the machine-to-machine (M2M) connections industry share.
In Europe, companies or operators like Deutsch Telekom and Vodafone have surged the success in the connected health market, which can propel the global market potential in the forecast years.
Competitive Landscape of the market
The global machine-to-machine (M2M) connections market prominent players are:
Frequently Asked Questions (FAQ) :
The global market of machine-to-machine connections is likely to expand at 9.9 % CAGR and value at USD 27.05 billion by 2023 due to key players making constant effort to launch effective technologies that can improve the quality of human life.
AT&T Inc. (U.S), NTT Data (Japan), Deutsche Telekom AG (Germany), and Telenor Group (Norway) are some top-notch players of the machine-to-machine connections market.
The automobile sector, followed by transportation and security and surveillance sectors are identified as major users of machine-to-machine connections.
The advent of IoT, cloud, and other wireless connectivity technologies is expected to bolster the machine-to-machine connections market growth.
North America is expected to contribute about 65% of the total revenue generated by the global M2M market. Thus, it can be concluded that the M2M connectivity market in the North America can secure the pole position.