The number of machine-to-machine devices will grow 36% in 2011, and is expected to reach 2.1 billion M2M connected devices in 2020, driven by the utilities, healthcare and securities industries, according to new research from Analysis Mason.
While nearly 30% of today’s M2M connections are in North America, the research firm expects that number do decline to 20% as M2M growth in the emerging world climbs. Average revenue per unit will be between $5 and $7 per month, but will drop 50% over the next 10 years as the number of connections skyrockets. The report did not break out the number of mobile connected M2M devices vs. the number of M2M devices connected by fixed communications.
“While much of today’s share of M2M connections is in the automotive and transport sector, we expect the utility, security and healthcare sectors to show highest levels of growth. We expect an explosion of connected device-centric solutions over the next years including smart metering; supply-side generation management; home and business surveillance; asset surveillance; cardio-vascular disease management; diabetes management; and body area networks. We also expect growth in the government, financial services and retail sectors as well,” the company said.
While the commercial sector drives M2M deployments today, accounting for more than half, M2M connected devices in the consumer space will outpace commercial devices in the next 10 years. Of the 2.1 billion connected devices in 2020, 1.3 billion will be in the utilities sector, Analysis Mason researcher Steve Hilton predicted. Another 45 million will be from the security sector, followed by 28 million devices in the automotive and transport sector.
“But all is not rosy in the M2M world,” the report said. “The M2M industry has a cumbersome supply chain, which hinders the development of industry-standard M2M solutions. This supply chain spans from chip and SIM manufacturer to IT vendor to communications service provide to application vendor to system integrator. The leaders in each supply chain category vary by industry solution and by geography. So the leaders within the automotive and transport sector might be completely different from those in the utilities sector. Furthermore, the leaders in the automotive and transport sector in the UK might be different from those in the USA.”