Machine to Machine (M2M) Market Global Forecast & Analysis (2012 - 2017) by Hardware Components [Sensors, Actuators, RFID, Memory, Processor & ADC/DAC, Power Module, Communication Module], Technologies [2G, Ethernet, Powerline, ZigBee, Wi-Fi] & Applications [Consumer Electronics, Automotive & Transportation, Retail, Utilities, Security & Surveillance, Healthcare]
Machine to machine (M2M) refers to technologies allowing both wireless and wired systems to communicate with other devices of the same ability. M2M uses a device (such as a sensor or meter) to capture an event (such as temperature, inventory level, etc.), which is relayed through a network (wireless, wired or hybrid) to an application (software program) that translates the captured event into meaningful information (for example, items need to be restocked). Some of the key factors driving the market for M2M solutions include a growing range of successful applications, regulatory mandates, the penetration of 3G technology and the launch of 4G technology.
However, the M2M market is also facing challenges with respect to awareness levels about technological advancements and the higher cost of installation and maintenance. There are several initiatives being taken by companies as well as governments to enhance awareness levels. With growing demand for innovative solutions, the cost of the solution is also expected to decrease gradually. In terms of revenue generation, North America is observed to hold the highest share (32.1%), followed by Europe with 29.6%.
Amongst the different hardware components used in M2M solutions, the market for communication modules holds the highest share as of 2011 and is expected to grow at a CAGR of 32.4% from 2012 to 2017. Some of the predominant technologies utilized for communication in M2M solutions are 2G, Ethernet, WiFi, Power Line, and ZigBee. While 2G technology held the highest share of the M2M market as of 2011, the market for ZigBee technology is expected to grow at the highest CAGR (33.8%) from 2012 to 2017. This is mainly attributed to its benefits such as low power consumption, low cost, and fast connection time for end-devices. With respect to different application sectors wherein M2M technology is utilized, the consumer electronics sector is observed to hold the highest share of 30.9% in 2011.