Although the M2M device market is immature and fragmented with small players, Juniper Research says device manufacturers have been focusing on M2M for some time and component costs have significantly come down in the last 18 months to two years.
Services Offer Highest Revenues
Juniper believes that connectivity will represent less than 10% of overall service revenues, while revenues associated with service enablement and device management will account for slightly less than 20% of service revenues. The remaining roughly 70% of service revenues will come from providing the actual services (such as providing a telematics service in an auto). Mobile operators typically do not get involved in this type of service, although some are reportedly considering it.
Leading M2M Industries
- Connected buildings: site and building management, monitoring and security.
- Mobile connected smart readers.
- Consumer vehicles with onboard M2M systems.
- Commercial telematics: mobile connected vehicles.
- Healthcare – monitored individuals.
M2M Opportunities, Challenges
Mobile operators face several opportunities and challenges unique to their business model in entering the M2M market. On the opportunity side, most operators have a global presence through roaming agreements. In addition, many larger operators have an existing base of corporate clients to upsell M2M services to.
On the challenge side, the provision of connectivity alone will not generally support an M2M business, requiring operators to branch into provision of specific services. In addition, the M2M market is highly fragmented and each vertical requires specialized knowledge and expertise.
About the Survey: The Juniper Research “Embedded Mobile & M2M Strategies Healthcare, Telematics, Metering & Connected Buildings 2009-2014” report provides intelligence and forecasts on the following M2M market sectors: smart metering/industrial application, telematics/in-vehicle application, healthcare, connected home and buildings, and other areas such as retail and banking.