M2M Services Market: Increasing Network of Fiber Optic Cable coupled with Enhanced Internet Connectivity to Drive Market Growth

The global market for M2M services is characterized by the dominance of some of the big telecom players that have international presence. Some of the key players in the global market for M2M services include names such as AT&T, Deutsche Telekom AG, Gemalto NV, PTC, Ericsson AB, EE Limited, Sprint.com, Aeris Communications Inc., PTC, Verizon Wireless, and Oracle.

Leading players in the market are putting in large sums of money in the activities of research and development to gain more advantage in terms of advanced communication technologies and are also indulging into strategic business activities such as mergers, acquisitions, and collaborations to gain an upper hand over the market rivals. Leading players in the market are also seen to tap into the opportunities presented by the emerging market after the recovery of the economy post the 2008 economic slump in 2008. In a recent development, Grameenphone has introduced a new package for its corporate clients called as M2M (Machine to Machine) plan to manage their several devices more effectively. The launching ceremony was conducted at the GP house in Bashundhara.

The global market for M2M services stood at an initial market valuation of US$9.695 bn in the year 2016. This valuation is projected to grow and reach a figure worth US$83.616 bn by the end of 2025. This growth of the global market for M2M services is expected to be achieved with the help of an impressive CAGR of 27.2% over the course of the given forecast period of 2017 to 2025. 

What Aspects Drive Growth of Global Market for M2M Services?

The chief driving factors for the growth of the global market for M2M services include growing networks of fiber optic cable and enhanced internet connectivity all across the globe. The M2M communications are carried out over the mobile networks that make use of fiber optic cables for transferring huge amounts of data. With considerable enhancements in the overall internet connectivity and the speed of the internet connection over the past couple of years, the M2M service providers now have the capacity to provide more integrated and advanced telecom solutions to the industrial clients. In addition to this, cloud services and solutions offered by the M2M service providers can be utilized over large number of devices and can aid in transferring huge amounts of data. 

Besides this, considerable drop in the functional costs associated with the M2M services because of the enhanced speed of wireless connectivity is also helping in driving the overall growth of the global market.

Large investments made by the telecom companies for the overall development of the fiber optic networks is also augmenting the growth of the global market for M2M services. For instance, India based Reliance Industries’ new telecom venture – Reliance Jio – involved huge investments in developing the fiber optic network. Introduced in June 2017, the network of fiber optic cable of Reliance Jio is nearly 25,000 km long that connects Africa, Asia, and Europe. Another big example of such development is the 9000 km long fiber optic cable network that connects Japan and the U.S.

What Factors May Impede Market Growth?

However, there are some factors that might impede the growth of the market in the coming years of the forecast period. One of the key restraining factor for the growth of the global market for M2M services is the consistent threat of theft of sensitive information in an event of cyber-attack. This is proving to be a massive headache for the service providers and is expected to slow down the growth of the market in the coming years. 


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