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M2M connections to reach 45 crore by 2018

Posted: 30 Jul 2013     Print Version  Bookmark and Share

Keywords:M2M  3G  4G 

Cellular M2M connections are set to reach over 45 crore by 2018, according to ABI Research. Europe dragged down worldwide connection growth in 2011 and 2012 to the high teens but with improving world economics connection growth will accelerate to a CAGR of 26 per cent through 2018.

"The market for M2M connections can be classified as very competitive to hyper-competitive depending on the country," comments practice director, Dan Shey. "As a result, connection ARPUs have declined dramatically over the last two years as operators fight for M2M business."

Contributing to the pain of declining ARPUs has been slower than expected migration to 3G and 4G technologies which offer better margins per megabit of traffic. Over 70 per cent of cellular M2M connections were on 2G networks in 2012.

Connection traffic and application needs have not grown enough to require 3G and 4G connections. But another reason is disparity in M2M module pricing – 3G and 4G cellular modules are over 2 times and 6 times more expensive than 2G modules, respectively.

But connection revenues are not where the money is says Shey. "While connection revenues are important, the money in the M2M market is in value added services – applications, systems integration, big data and analytics. Operators dedicated to the M2M market are aggressively moving up the stack and either adding services or partnering to grow their share of the M2M pie."

For more statistics and forecasts, click here.





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