Asia-Pacific to lead M2M growth, says Strategy Analytics
February 18, 2015
The number of M2M connections will grow from 368m in 2014 to 2.1bn by 2022, according to a study from Massachusetts-based Strategy Analytics. Called “M2M Connections by Industry Vertical and Bandwidth”, it predicts that much of the growth will be spurred on by the Asia-Pacific region.
The need for speed is also driving new adoptions with three-quarters of new M2M connections likely to be on 3G or faster networks by 2022.
Not surprisingly, given the pent-up demand among the very large population, the Asia-Pacific region will account for 55 per cent of cellular M2M connections globally by 2022, followed by Western Europe and North America. High bandwidth 3G and 4G connections will grow to 75 per cent of all connections by 2022.
Smart metering deployments in China continue to grow significantly. Overall smart metering is expected to remain one of the major areas for M2M growth globally, particularly in Europe and Asia.
“It’s clear that M2M connections will remain an extremely kinetic segment over the next seven years, as users enthusiastically embrace device connectivity in those market segments that have the greatest impact on their everyday activities like smart metering and utilities, healthcare and smart home automation,” said Andrew Brown, executive director of enterprise research at Strategy Analytics.
Healthcare, smart metering and utilities, consumer electronics, and smart home will be the largest markets in 2015, with each of these segments posting double digit percentage compound annual growth rates (CAGR) ranging from 18 per cent for smart metering and utilities to nearly 29 per cent for home automation between 2014 and 2022. Other markets such as vehicles and retail will also grow well over the forecast period.
Installed high bandwidth connections in the transportation market will post a CAGR of 32.7 per cent from 2010 to 2022. However, high bandwidth connections in the transportation vertical is an emerging market and coming from a relatively small base compared with more entrenched consumer segments. Nonetheless, high bandwidth connections in the transportation sector will ramp up from 300,000 in 2015 to 2.6m by 2022.