All the data around M2M
Wednesday, 02 October 2013
M2M generates a big amount of data. On the one hand, all connected devices provide us with a lot of information. On the other hand, we are constantly seeing predictions and estimations about how many millions of things are connected, how many will eventually be connected and how much money this business generates. Here’s an overview of what’s happening in the machine-to-machine industry.
Data regarding the industry varies according to different studies. Cisco states that 80 things per second are being connected to the internet. By 2020, more than 250 things will be connected every second. This makes a total of more than 50 billion things which will be connected to the internet by this year. This is a huge number, but lower than the one that IDATE gives. They assure that 15 billion objects were connected to the Internet in 2012. In 2020, there will be 80 billion, according to IDATE.
If we center ourselves on vehicles, Strategy Analytics estimates that by 2017 there will be 140 million connected cars on the road globally. This seems like realistic data taking into account that there are currently around 3 million vehicles that are directly connected to the data centers of only one manufacturer: BMW.
Taking a brief look at the industry of POS terminals, Berg Insight forecasts that the base of cellular terminals that will be installed will grow at a compound annual growth rate of 21.4 percent between 2011 and 2017. They will reach 29.4 million units worldwide by 2017. This is just another example of the huge amounts of connections per sector that exist.
At home, data is not so impressive, but if we add all the homes of a given country, we realise that the predicted 50 internet-connected devices there will be in each one by 2022 is also an important number.
And, what about money? Operators are already generating strong revenue in this sector, amounting to $10 billion worldwide in 2013, and increasing to $88 billion by 2023, according to Analysys Mason. If we look at the big picture, which doesn’t strictly include connected devices, the amount grows: an analysis from Frost & Sullivan reveals a $3.3 trillion market potential in smart cities by 2025, including infrastructure development, technology integration, and energy and security services.
Image: Thomas Hawk