PUBLISHER: IMARC | PRODUCT CODE: 1541231
PUBLISHER: IMARC | PRODUCT CODE: 1541231
The global machine-to-machine (M2M) connections market size reached US$ 21.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 30.6 Billion by 2032, exhibiting a growth rate (CAGR) of 4% during 2024-2032. The growing development of advanced infrastructure in healthcare facilities, increasing demand for automation and effective predictive maintenance systems, and rising adoption of advanced medical devices for remote patient monitoring represent some of the key factors driving the market.
Major Market Drivers: The rising demand for M2M connections, since they enable electronic appliances and other technologies to have real-time control of operations, is primarily driving the growth of the market. Besides this, there is a rise in the development of infrastructure and improvement of treatment and diagnosis methods to provide quality healthcare services to patients which is creating a positive outlook to the overall market.
Key Market Trends: The rising demand for automation and effective predictive maintenance systems in various industries to improve operational efficiency and collect real-time data is contributing to the growth of the market.
Geographical Trends: On a regional level, the market has been classified into North America, Asia-Pacific, Europe, Latin America, and Middle East and Africa, where North America currently dominates the global market. Some of the factors driving the machine-to-machine (M2M) connections market in North America included the growing advancements in the medical sector, various technological advancements, rising automation of operations in warehouses, etc.
Competitive Landscape: Some of the key players operating in the global market include AT&T Inc., Cisco Systems Inc., Deutsche Telekom AG, Huawei Technologies Co. Ltd., Intel Corporation, Murata Manufacturing Co. Ltd., NXP Semiconductors N.V., Telefonica S.A., Texas Instruments Incorporated, U-Blox Holding AG, Verizon Communication Inc., and Vodafone Group Plc, among others.
Challenges and Opportunities: The increasing risk of data privacy and the rising cases of data breaches are significant challenges faced by market operators. However, various key market players are extensively investing in research and development efforts to make more secure M2M connections, which is anticipated to provide lucrative growth opportunities to the overall market.
Escalating Demand to Automate Various Industrial Processes
The rising demand for automation and effective predictive maintenance systems in several industries to improve operational efficiency and collect real-time data is primarily driving the growth of the global machine-to-machine (M2) connections market. Moreover, various developing nations are realizing the importance of M2M and are, therefore, increasingly taking initiatives to integrate M2M connections in both public and private sectors. For instance, in February 2022, the Government of India stated that M2M/Internet of Things (IoT) is one of the most rapidly developing technologies worldwide, offering a wealth of advantageous potential for society, businesses, and consumers. The government initiative encourages greater use and innovation in the machine-to-machine (M2M) industry. Besides this, the emerging trend of remote working is also augmenting the need for efficient M2M connections. These solutions have made it easier and more effective to communicate over long distances and between many devices. According to Cisco Systems, by the end of 2023, there were approximately 14.7 billion M2M connections globally. The forecasted compound annual growth rate of connections from 2018 to 2023 is 19%.
Growing Usage of the Internet
The rising utilization of the internet, along with the increasing penetration of 5G networks, is creating a positive outlook for the overall market. Moreover, the proliferation of internet connectivity has led to reduced costs for data transmission and infrastructure. As a result, it is becoming more feasible for businesses to implement M2M solutions. The cost-effectiveness of using the internet for communication allows for the deployment of M2M solutions on a larger scale. According to Speedtest, as of April 2023, Qatar had the fastest average mobile internet connections globally, nearly 190 Mbps. The United Arab Emirates (UAE) and Macau followed, with each of these countries registering average median speeds above 170 Mbps. Moreover, Telemetry usage in daily items like heating units, electric meters, and internet-connected appliances has grown because of the internet and better wireless technology standards. According to the ITU, Europe had the most significant internet penetration rate among all world regions in 2022, increasing from just under 60% in 2009 to 89% in the most recent year for which data was available. The lowest internet usage rate, at 40%, was found in Africa. Around 4.9 billion people were reportedly online as of the same year, based on total global internet access. Such rapidly growing penetration of the internet is anticipated to increase machine-to-machine (M2M) connections market share.
Emergence of Smart Cities and Connected Cars
The IoT infrastructure in various smart cities is required to handle devices and objects connected via different connectivity methods, several cities are utilizing IoT to enhance services, such as water management, waste management, and energy consumption in various sectors. The escalating adoption of smart technologies in smart connected solutions is creating new business opportunities for cellular M2M connections. Various key market players are increasingly investing in research and development activities to introduce advanced M2M solutions for the development of smart cities. For instance, TeliaSonera launched M2M-in-a-box to help connect businesses. This service is cloud-managed through a web user interface and includes sensors that can be used to connect everything from buildings and shops to vehicles and machinery. Innovations like these will continue to catalyze the growth of the market in the years to come.
IMARC Group provides an analysis of the key trends in each sub-segment of the global machine-to-machine (M2M) connections market research report, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on connection type, technology, and end-use industry.
Wired
Wireless
Currently, wireless connections hold the majority of the total market share
The report has provided a detailed breakup and analysis of the machine-to-machine (M2M) connections market based on the connection type. This includes wired and wireless. According to the report, wireless represented the largest segment.
The increasing adoption of IoT solutions for automation, monitoring, and optimization is augmenting the demand for wireless M2M connections. Moreover, various telecommunication authorities are also taking initiatives to expand the adoption of wireless M2M connections. For instance, The Indian Department of Telecommunication announced that Machine-to-Machine (M2M) and Wireless Personal Area Network/Wireless Local Area Network (WPAN/WLAN) registration has been extended to all entities, including businesses, government departments, and partnerships. As a result, M2M wireless connection is anticipated to grow at a rapid pace in the coming years.
Serial Connection
Power Line Connection
Cellular
Wi-Fi
Bluetooth
Others
Cellular technology currently exhibits a clear dominance in the market
A detailed breakup and analysis of the machine-to-machine (M2M) connections market based on the technology has also been provided in the report. This includes serial connection, power line connection, cellular, Wi-Fi, Bluetooth, and others. According to the report, cellular accounted for the largest market share.
Automotive
Healthcare
Consumer Electronics
Transportation
Utilities
Retail
Others
Currently, automotive accounts for the largest market share
A detailed breakup and analysis of the machine-to-machine (M2M) connections market based on the end-use industry has also been provided in the report. This includes automotive, healthcare, consumer electronics, transportation, utilities, retail, and others. According to the report, automotive accounted for the largest market share.
The Internet of Things (IoT) technology is taking over the automotive industry. Connectivity will be the core of the next generation of future vehicles. From real-time connectivity to the mapping of information on the roads, low-latency networks with M2M and IoT are allowing the automobile industry to speed-track its transformation. IoT and M2M are servicing networks and standardization to make a fully automated transportation system a reality.
North America
United States
Canada
Asia-Pacific
China
Japan
India
South Korea
Australia
Indonesia
Others
Europe
Germany
France
United Kingdom
Italy
Spain
Russia
Others
Latin America
Brazil
Mexico
Others
Middle East and Africa
North America holds the largest share of the machine-to-machine (M2M) connections
The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America (the United States and Canada) was the largest market for machine-to-machine (M2M) connections.
Some of the prominent telecom sector firms are based in North America in the area, including AT&T, Verizon, Cisco, and many more, who are constantly investing in expanding and improving their infrastructure in order to stay up with technological breakthroughs. Over the projected period, it is anticipated to accelerate the adoption of M2M connections. Furthermore, the number of 5G connections (excluding IoT) in North America will increase from 14% in 2021 to 280 million by 2025, making up 64% of all mobile connections. Moreover, several big companies in the area have been able to improve technology through research and development, strategic alliances, and mergers and acquisitions. For instance, in December 2022, Aeris Communications, a California-based Internet of Things and machine-to-machine (IoT and M2M) communications provider, announced plans to acquire Ericsson's IoT Accelerator and Connected Vehicle Cloud businesses. The agreement is expected to enable Aeris and Ericsson's IoT platforms to link over 100 million IoT devices worldwide in 190 different countries.
AT&T Inc.,
Cisco Systems Inc.
Deutsche Telekom AG
Huawei Technologies Co. Ltd.
Intel Corporation
Murata Manufacturing Co. Ltd.
NXP Semiconductors N.V.
Telefonica S.A.
Texas Instruments Incorporated
U-Blox Holding AG
Verizon Communication Inc.
Vodafone Group Plc
(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
March 2024: The Telecom Regulatory Authority of India (TRAI) released recommendations on the usage of embedded SIMs for machine-to-machine (M2M) communications. The authority believed that the implementation of these recommendations by the government will promote orderly growth in the M2M eSIM segment of the telecom sector in India and will stimulate the development of a homegrown M2M eSIM ecosystem in the country, thus enabling the growth of modern M2M communication.
February 2024: OptConnect, a longtime leader in managed wireless services, announced the acquisition of Latin America-based M2M DataGlobal ("M2M"), one of the largest and most professionally run IoT organizations in Latin America. Together these businesses create a premier managed wireless connectivity platform of scale, capable of supporting customers across a broad spectrum of industries and solution needs throughout North and South America.
January 2024: The Indian Department of Telecommunication announced that Machine-to-Machine (M2M) and Wireless Personal Area Network/Wireless Local Area Network (WPAN/WLAN) registration had been extended to all entities including businesses, government departments, and partnerships.