M2M market will reach $US66B by 2019, Ovum says

The latest forecasts by Ovum highlight the continuing solid growth of the machine-to-machine market. Long term, the opportunity is huge — the total market place isexpected to reach $US66 billion by 2019. As for the cellular market, Ovum says it will bring in a total of $US252 billion for the 2015–19 period.

According to researchers, these prospects make it very attractive for operators to invest in their existing capabilities to gain market share. “Operators need to leverage their other capabilities, namely their ability to aggregate large amounts of data around their customers. We’re seeing device and application management become the new focus in M2M, and the ability to collect vast amounts of data will be of considerable value,” says Jamie Moss, senior analyst at Ovum (pictured).

In the cellular M2M market, Ovum identifies five different types of business models:

  • End-to-end services developed internally and offered as an offshoot of their own supply-chain needs;
  • Crafting bespoke, end-to-end solutions for individual enterprise partners — a common strategy involves outsourcing to acquire M2M specialisation;
  • Acquiring dedicated M2M service providers to own that intellectual property, resell those services into other markets and use the assets acquired to develop new services;
  • Partnerships with specialists in other markets, delivering connected value-added variants of existing services;
  • Operators that have opted to license suites of third-party M2M services from aggregators.
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