Transport and logistics drive Australian M2M market
September 17, 2014
Australia’s market for M2M technologies is set to be worth $500 million by 2019, according to new research from Vodafone, thanks chiefly to growth in the transport and logistics sector.
Carried out by market-research company Ovum on behalf of Vodafone (Newbury, UK), the research examined Australian firms’ deployment of or plans to deploy M2M technology.
“The research found the transport and logistics sector has the highest level of M2M adoption in Australia, with 44% of businesses having applied at least one solution while a further 22% are considering their use of the technologies,” said Justin Nelson, Vodafone Australia’s general manager of M2M.
“We estimate the value of M2M in the transport and logistics sector will grow to around $81 million in five years and to be focused on fleet management, supply chain and safety applications,” he added.
Despite these predictions, Nelson expects the retail and wholesale sector to lead the Australian M2M market in five year, with an annual value of $82 million.
So far, it says, some 13% of companies in this sector have deployed M2M applications, particularly for point-of-sale and asset-tracking, and 32% say they are in the process of rolling the technology out.
“This sector is being motivated by the desire for productivity gains as well as ever-present pressure on margins,” said Nelson.
Among the report’s key findings is that security and safety, asset management, industrial automation and supply chain represent the four most common M2M applications by type.
Ovum also believes that investment in service integration is set to be worth more than $269 million per year, followed by application development ($131 million) and network connectivity ($111 million).
“Vodafone expects the value of M2M application development and network connectivity to be worth almost a quarter of a billion dollars annually within five years,” said Nelson. “We are focusing on key sectors we believe have the capacity to grow significantly and to expand our profile in the M2M market.”