Proving the Business Case for the Internet of Things

M2M adoption by energy companies to more than double by 2016: Vodafone

Iain Morris
July 8, 2014
Some 28% of energy and utility companies surveyed in Vodafone’s latest M2M barometer report are making use of M2M technology, up from just 13% last year, and 62% are expected to be doing so by 2016.

The latest data – generated by the operator in partnership with analyst firm Machina Research – makes the energy sector the second most responsive to M2M technology, after consumer electronics.

Interest in M2M among energy companies is largely being driven by regulatory mandates, says the report, which explains why smart metering and smart grid solutions remain the most widely adopted services among respondents to the survey.

As noted by Matt Hatton, an analyst with Machina, many governments have set aggressive targets for M2M adoption by the energy and utilities sector, with the European Union requiring that 80% of electricity meters be smart meters by 2020.

However, Vodafone (Newbury, UK) believes many of these organizations will look to make use of M2M in other areas once they have seen the benefits of their initial investments.

That said, energy appears to be lagging other industries when it comes to the development of a so-called “external-focused M2M strategy” – one that supports the launch of new services and opens up new revenue opportunities for the company in question – with transport and logistics leading in this area.

Energy and utilities players that have formulated an external-focused strategy have tended to focus on smart home and smart office solutions, including the provision of services like home automation, intelligent heating and connected security.

“This is a logical extension for utilities firms looking to create new revenue streams,” said Vodafone.
Other News
PEP Stations and Axeda Charge Ahead with Remote Monitoring and Reporting
PEP Stations needed a remote monitoring and reporting solution for its electric vehicle charging stations, which served building tenants.  
Numerex M2Mdirector Delivers Cost Savings and Safety Benefits to the Oil & Gas Industry
Managing marginal well operations is labor intensive. Pumpers drive to each tank daily to check water and oil levels and equipment, including drilling motors. If levels are too high, pumps must be manually shut down to avoid spills and incurring fines and cleanup costs.