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Telematics lead way in pushing M2M forward, says Juniper Research

Steve Rogerson
June 17, 2015
The telematics sector will continue to outperform all other M2M markets over the next five years in revenue terms, with one in five passenger vehicles connected globally by 2019, according to a report from Juniper Research.
Smartphone-based models have become the key disruptor for M2M, as sectors such as healthcare, consumer electronics and retail continue to evolve. Juniper Research forecasts that the M2M sector will generate service revenues of over $40bn globally by 2019 – doubling the size of today’s market.
The roll-out of smart metering initiatives will see rapid up-take over the next six years, driven in part by governments’ ambitions to increase efficiency. "Both India and China are expected to see rapid adoption of smart metering as new metering infrastructure is installed and smart cities are created," said research author Anthony Cox. The utility sector however is not expected to generate similar revenues to that of the connected automotive sector.
Agriculture and environmental applications are starting to emerge as important sectors in the M2M market, with applications as diverse as wildlife and farm animal monitoring, and increasing productivity through precise field mapping. Mergers and acquisitions are also beginning to bring together some of the industry’s most powerful players, such as the merger of Kore Telematics and Raco Wireless, and the acquisition by Huawei of the M2M technology start-up Neul.
The US remains the leading geographical region for M2M, ahead of Western Europe. China is becoming increasingly important as initiatives by the country’s major carriers begin to take shape. Implementation of big data analytics will play an increasingly important role, particularly in areas such as telematics, smart metering and healthcare.
• Overall cellular IoT connections will grow from 42.0 million connections at the end of 2014 to 203.1 million in 2020 at a compound annual growth rate of 30 per cent, according to a report from Compass Intelligence. And 451 Research, an information technology research and advisory company, has determined that cellular IoT and M2M connections will increase nearly fourfold globally from 252 million in 2014 to 908 million in 2019.