Global Machine to Machine (M2M) Market worth $85.96 Billion by 2017 March 2014 march 2014 | Page 2

cost associated with the development and deployment of the solution are slightly
hindering the market growth.
Some of the key hardware components used in the development of M2M solution
include sensors, actuators, RFID, memory, power module, and communication module.
The communication module is observed to hold the highest share in the M2M market
and expected to grow at the highest CAGR of 32.4% from 2012 to 2017. With respect to
the technologies utilized to achieve communication, 2G networks are widely deployed
as they offer sufficient bandwidth and extend support to a variety of low-cost embedded
data networking modules. While this technology holds the highest share of 35.5% as of
2011, ZigBee is expected to grow at the highest CAGR of 33.8% from 2012 to 2017.
This was mainly attributed to its benefits such as low power consumption, low cost, and
fast connection time for end devices. Amongst the different application sectors that
utilize M2M-based solutions, consumer electronics sector provides the most potential
opportunities followed by automotive and transportation. With rise in government
regulations to ensure the safety and security of the inmates of vehicles, automotives
and transportation sector is expected to grow at the highest CAGR of 33.5% from 2012
to 2017.
The concept of partnerships amongst embedded device manufacturers, solution
providers, and M2M network operators has emerged as a global ecosystem in the M2M
market. This, in turn, is expected to leverage their sales and marketing channels. The
M2M market space is observed to provide low marketing cost and longer life cycles.
Mobile network operators (MNOs) are expected to be highly benefited by this market
with loads of potential growth opportunities.
The global M2M market is expected to grow from $21.52 billion in 2011 to $85.96 billion
in 2017 at a CAGR of 26.1% from 2012 to 2017. Asia-Pacific is observed to have the
highest growth rate. This is mainly attributed to the growing technology awareness and
rapid fall in availability of human labor for execution of critical tasks.