Editor’s Note: With 2015 now upon us, RCR Wireless News has gathered predictions from leading industry analysts and executives on what they expect to see in the new year.
With the “Internet of Things” exploding for both enterprises and consumers, the machine-to-machine market has seen strong growth in 2014. Taking into account environmental forces, maturing solutions, decreasing costs and increased demand, M2M will have an even greater year in 2015 – but challenges still lie ahead.
The big data potential of M2M will be fully realized
After first implementing M2M to simplify processes, companies now realize the data produced by M2M solutions has potentially huge value in other business processes, such as inventory management, sales forecasts, pricing and target promotions. Today, 75% of M2M adopters say they are using analytics; 88% expect to do so in three years’ time, according to a Vodafone study. Organizations are now including big data as an inherent part of M2M strategy. Enterprises will need to invest in specialists with big data skills and address the privacy and security risks associated with storing large amounts of data.
4G will improve ROI for many M2M solutions – and enable new ones
Today, companies use a wide range of technologies to connect their M2M solutions – including fixed-line (63%), cellular (60%) and Wi-Fi (56%), according to a Vodafone study. However, the percentage of companies relying on fixed-line connections will fall in the next few years, due to the falling costs of mobile broadband and the emergence of 4G. These next-generation networks, including LTE, will make new kinds of applications practical and cost-effective across industries, including video-based security, in-vehicle information services, assisted living and m-health solutions, and much more.
Manufacturers and automotive companies will outperform expectations
While uptake of M2M in manufacturing has lagged, it is one of the industries that stands to gain the most from M2M technologies. As understanding of M2M grows, we’ll see more manufacturers embrace M2M. In addition, we’ll continue to see exponential growth in automotive companies. Consumers are beginning to demand M2M services in new vehicles – from economy to luxury cars. This will also drive the aftermarket to create solutions for older vehicles that didn’t have M2M installed at the factory.
Standards will emerge
There’s been lots of buzz about competing standards for IoT, but in the coming years the industry will be forced to put one industrywide standard into action – whether by collaboration or by consumer choice. While the openness of IoT has been positive up until this point – leading to outstanding innovations – as more solutions are put into place, customers will want the knowledge that their solutions are future-proofed and won’t be obsolete in a matter of years due to differing protocols. Industry leaders will have to work together or risk being left behind.
Andrew Morawski joined Vodafone in 2013 as its head of M2M in the Americas, and is responsible for leading Vodafone’s M2M sales, strategy and operational initiatives in North and South America. His key area of focus for the region is the application of M2M technologies, which enable creative new business models to drive growth in both established and emerging markets. Morawski brings a wealth of experience in the global telecommunications industry to the role. He joined Vodafone from Cable & Wireless Worldwide where he was the managing director for the Americas for the past three years. Prior to joining Cable & Wireless Worldwide, Morawski worked for Telstra for over a decade in multiple roles including president and CEO of Telstra, leading the Americas region for Telstra International.
