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The Machine to Machine (M2M) Services Market size is forecast to increase by USD 59.17 billion between 2022 and 2027, accelerating at a CAGR of 28.33%. In 2017, the US held the largest market share, projecting an annual revenue of USD 2.09 billion. The market shows growth due to increased connectivity demand drives market growth, pressuring operators to enhance cellular and satellite networks. SatCom connectivity is crucial for aviation, supporting automated flight operations and in-flight Wi-Fi or mobile services. The rise of 5G networks promises advancements in automotive, telecommunications, and IoT sectors, fostering developments in autonomous vehicles, machine-to-machine, and machine-to-infrastructure services.
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Machine-type communication (MTC) and the proliferation of connected cars, leading to a paradigm shift in various sectors, such as energy consumption optimization and smart management of public buildings. Wired systems are being replaced by more efficient wireless technologies like NB-IoT and LTE-M, enabling seamless M2M communications and facilitating the development of innovative solutions for Industry 4.0. These advancements are bolstered by the integration of analytics, artificial intelligence (AI), and the Internet of Things (IoT), empowering decision-making processes and driving progress across diverse domains, including healthcare equipment, waste management, and water management. As technology continues to evolve, the up-gradation of technologies like 2G and 3G further propels the expansion of the M2M services market, opening doors to a future of interconnected systems and enhanced efficiency.
The advancements in connectivity technologies and the adoption of various technologies across industries. These services facilitate seamless communication and data exchange between devices, enabling efficient manufacturing processes IndustryInternetand adherence to safety regulations. Telematics service providers (TSPs) and resellers play a crucial role in delivering M2M communication solutions, leveraging their financial and technological strength to expand into new markets. However, challenges such as the high cost of installation and operational breaches persist, necessitating compliance with government policies and the signing of Memorandum of Understanding (MoU) agreements in telecom-related fields. Despite obstacles, the market is propelled by innovations in wireless technologies like NB-IoT and LTE-M, paving the way for enhanced IoT infrastructure and applications in various sectors, including distribution automation, medical devices, and public safety systems.
The growing demand for connectivity is a key factor boosting the market growth. The surging demand for connectivity is putting pressure on operators to establish robust cellular and satellite networks. The aviation industry relies heavily on SatCom connectivity for automated flight operations and in-flight Wi-Fi or mobile services to meet customer demands. SatCom offers reliable on-the-move communications, providing access to various applications and services efficiently. Furthermore, the increased deployment of satellite terminals like IP Voyager on moving vehicles with tracking antennas contributes to the robust growth of the market. These terminals operate effectively in challenging environments, delivering versatile and dependable performance and driving the services market growth in the forecast period.
The emergence of 5G networks is poised to revolutionize various sectors, including automotive, telecommunications, and IoT. This advancement is expected to bolster developments like autonomous vehicles, machine-to-machine, and machine-to-infrastructure services. Automotive manufacturers and telecom providers have been actively collaborating to develop IoT connectivity platforms, facilitating seamless communication between vehicles. Autonomous vehicles, a significant innovation in the automotive industry, promise numerous social, economic, and mobility benefits. While prototypes exist, efforts are underway to commercialize these technologies.
Safety features in autonomous cars ensure intervention when necessary, particularly in hazardous environments. Vehicle-to-X (V2X) technology enables communication between vehicles and various entities on the road, enhancing driving efficiency and safety. Moreover, IoT plays a pivotal role in fleet and public transport management, supported by solutions provided by companies like Cisco. Additionally, 5G technology facilitates Over-The-Air (OTA) updates, crucial for real-time data processing in automated systems, offering significant benefits in terms of cost and time savings. Companies like Tesla, BlackBerry, and Ford are already leveraging OTA updates to enhance their offerings, driving the growth of the global machine-to-machine services market.
Major Market Challenges
Increasing adoption of hybrid networks such as VSAT is one of the major challenges for machine to machine satellite connections and services. VSAT technology has the capability to provide satellite telecommunication services such as VoIP and satellite broadband Internet access. These services can be accessed through high-frequency bands such as the Ku band. VSAT offers satellite applications or services for low cost when compared with mobile satellite systems. Also, the design complexity issues are very few in VSAT, with customer-friendly and innovative communication solutions due to its smaller antenna size. Hence, VSAT customers are growing rapidly and posing a threat to the machine to machine satellite connections and services market. Therefore, machine to machine service operators are forced to develop advanced technologies to meet growing competition.
The market research and growth report extensively covers market segmentation by Component (Software and Service), Deployment (On-Premises and Cloud) and Geography (North America, Europe, Asia, and Rest of World (ROW)). Furthermore, the market growth analysis report includes historic market data from 2017 to 2021. The M2M services market is experiencing rapid growth, driven by advancements in analytics and M2M communications technologies. These innovations enable seamless communication between collaborating machines, reducing the need for human involvement and enhancing operational efficiency across various industries. With wired or wireless connectivity options like 4G/LTE and emerging 5G and beyond technologies, M2M services facilitate high-speed internet connectivity and connectivity process optimization. Moreover, the integration of cloud platforms and analytics capabilities further enhances product enhancements and cost-effectiveness. Strategic developments such as partnerships, acquisitions, and software application integration are driving market expansion, particularly in sectors like healthcare equipment, waste management, water management, transportation, and telehealth/telemedicine. As technology giants invest in specialized solutions like autonomous driving and driver assistance systems, the M2M services market is poised for significant growth, catering to the evolving needs of enterprises and smart cities alike.
Automotive Segment Dominates the Market
The automotive segment showed a gradual increase in the market share of USD 2.93 billion in 2017 and continued to grow by 2021. The technology enables remote diagnostics, which can alert drivers and solution centres to problems and possible solutions. The solutions enable advanced navigation capabilities that provide real-time dynamic traffic information useful for route optimization and schedule delivery. Hence, the growing demand in the automotive segment will drive the market growth and trends.
Market - Revenue Share by Automotive Segment, 2017-2027
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APAC Holds a Prominent Position in the Market.
APAC is estimated to contribute 31% to the growth of the global market during the forecast period. The growing urban population, coupled with increasing disposable income, has raised the demand for passenger and commercial vehicles with integrated advanced technologies to improve fleet management and enhance safety. whole. These factors are driving the growth services market in the region. In addition, demand for car-sharing services has increased across the APAC region. Popular car or taxi service providers prefer to use machine-to-machine mobility solutions and services to improve their performance and improve communication requests efficiently, which will accelerate the growth of the M2M services market in the region.
Moreover, the prevalence of chronic diseases, such as heart disease, cancer, and diabetes, is increasing in the APAC region. Such a raised prevalence of chronic diseases increases the need for long-term consultations in-home care facilities without the need for medical facilities. This is increasing the demand for connected devices that provide effective consulting by observing and analyzing data, which is driving demand. Therefore, the growing demand for effective and timely chronic disease management in the APAC region is driving the growth of the M2M services market during the forecast period.
Market Size, By Region, Global, 2017-2027
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The market is fragmented in nature. Some significant players include Alphabet Inc., Amdocs Ltd., AT and T Inc., BT Group Plc, Cisco Systems Inc.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Comarch SA, Cstar Technologies Inc., Deutsche Telekom AG, Huawei Technologies Co. Ltd., Intel Corp., Telefonaktiebolaget LM Ericsson, Orange SA, Rogers Communications Inc., Semtech Corp., Telefonica SA, Telit IoT Platforms LLC, Thales Group, Verizon Communications Inc., Vodafone Group Plc, and Aeris Communications Inc.
The dynamic market growth analysis is propelled by the integration of artificial intelligence (AI) and the Internet of Things (IoT), enhancing intelligence, decision-making, and overall productivity. With rapid development in M2M technology and the advent of fifth-generation (5G) networks providing high-speed connectivity, the market has experienced significant growth. Despite challenges like high installation and maintenance costs, services see widespread deployment in the telecom industry across various end-user verticals, showcasing trends in point-to-point communications, hardware, sensors, and machines integrated into wireless or wired networks. Collaborations between The Indian Institute of Technology Delhi (IITD) and the Centre for Development of Telematics (C-DOT) drive advanced R&D projects in IoT/M2M, AI/ML, cyber security, and 5G technologies. The Asia-Pacific region leads in digital technologies' highest growth rate, with government initiatives and policies fostering machine-to-machine service providers' growth despite security concerns in the communication sector. Innovations continue to shape the future of the connected ecosystem, driving the market toward unprecedented growth.
The technology giants are driving innovation in various sectors, including transportation, telehealth/telemedicine, and smart homes solutions. Their focus on specialized solutions such as self-driving cars and wearable devices revolutionizes industries by integrating vital sign monitoring, sleep pattern tracking, and physical activity analysis. This transformation relies on advanced M2M applications facilitated by wired and wireless systems like Ethernet, Zigbee, and Power-Line. Moreover, the incorporation of hydraulic water pressure sensors, gas detectors, and smoke detectors ensures safety and efficiency. Despite challenges like power consumption and network resilience, ongoing technological advancements and up-gradation of technologies promise scalability and ease of commissioning. Through value chain analysis and optimization of operational activities, the market thrives despite limiting factors, maintaining effectiveness and quality in the current business scenario.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 - 2027.
Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2022 |
Historic period |
2017 - 2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 28.33% |
Market growth 2023-2027 |
USD 59.17 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
27.31 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 31% |
Key countries |
US, China, Japan, India, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alphabet Inc., Amdocs Ltd., AT and T Inc., BT Group Plc, Cisco Systems Inc., Comarch SA, Cstar Technologies Inc., Deutsche Telekom AG, Huawei Technologies Co. Ltd., Intel Corp., Telefonaktiebolaget LM Ericsson, Orange SA, Rogers Communications Inc., Semtech Corp., Telefonica SA, Telit IoT Platforms LLC, Thales Group, Verizon Communications Inc., Vodafone Group Plc, and Aeris Communications Inc. |
Market dynamics |
Parent market analysis,Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Technology
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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