The machine-to-machine market (M2M) has been like that twinkling star that floats somewhere off in the distance. You know it’s there, but can’t really get your head around what it is or will mean to you.
But, much like wearables, M2M is finally having its day. iDATE expects this market to reach €40 billion in just three years, by 2017, with Europe as the biggest market in terms of revenue, ahead of North America.
The growth is being driven by the application of M2M in the automotive, consumer electronics and utilities industries, which is just where you are starting to see the roots take hold in terms of a hardware, software, analytics, cloud, wireless tech and sensor mash up.
Example? An automobile’s microchip tells the engine how to operate under certain conditions so the automobile can achieve the best fuel economy. Or, M2M lets you monitor conditions of essential facilities or services, water treatment plants, with less human intervention.
Google’s recent acquisition of Nest Labs for $3.2 billion, which makes a smart thermostat, smoke detector and CO alarm, signals a strong move towards maturing the M2M market.
According to the report from iDATE, the M2M market generated €24.2 billion in revenue in 2013, which translates into an annual growth rate of 31% in volume and 11% in revenue. The bulk of revenue? It came from software and IT developments which accounted for two-thirds of total market value.
IDATE report also reveals that China rose to the number one spot in number of cellular M2M modules installed, overtaking the United States at the close of 2013.
“The M2M connected home market, still in it its embryonic state, has the ability and agility, and based upon Google’s Nest purchase, to take hold; thereby, pressing M2M IP connections forward and making its foray into our homes in a more meaningful, commonplace manner,” said Nora Goodman, IPTV and mobile thought leader and global digital strategist. ”The value to the customer will be in the ability to tap into the connection and monitoring brain from any remote access point and from a single driven home-hub. Now, sooner than later, our connected home with our all major appliances and wired home systems, will to be as de rigueur as our toasters.”