CAMPBELL, Calif.–(BUSINESS WIRE)–Market research firm Infonetics Research released excerpts from its just-published M2M Strategies by Vertical: North American Enterprise Survey, which provides a view of the machine-to-machine (M2M) market – also known as the Internet of Things (IoT) – through the eyes of businesses using or planning to use M2M solutions.
“This speaks to the need for M2M services to deliver a strong business case. As technologies continue to evolve and prices come down, enterprises will increasingly turn to M2M to lower operating costs, differentiate their brands, and create new revenue opportunities.”
For the report, Infonetics surveyed medium and large businesses about their plans for M2M services, which allow wireless and wired systems to communicate with devices that collect and provide data for analysis. Some examples of how organizations are utilizing M2M connections today include:
- Transport companies equipping their fleets with connected devices that monitor driver speed, location, and other data to maximize safety and efficiency
- Automobile makers manufacturing “connected cars” that enhance the driving experience by providing fuel saving tips, custom music, rear-seat infotainment, automatic crash notification, young driver tracking, etc.
- “Smart cities” and municipalities more efficiently monitoring public infrastructure, such as roadways and bridges, to better manage and reduce traffic
- “Connected hospitals” more effectively observing patient conditions (vital signs, location, etc.), pharmacy inventory, and medical device tracking
- Manufacturing plants linking together key assets and systems to monitor and maximize production and maintain inventory
- “Smart utilities” connecting meter reading devices to better manage resources such as electricity and water
Infonetics’ latest M2M strategies report explores the drivers, barriers, plans, and service provider selection criteria of enterprises from 5 industries: automotive and logistics; utility; retail; healthcare; and public safety and surveillance.
“So much of the discussion surrounding M2M has been focused on the number of expected M2M connections by 2020, but whether it is 20 billion, 30 billion, or 50 billion, there’s no question that number is going to be huge. What hasn’t been as clear is why this is happening. Why are enterprises buying M2M services?,” says Godfrey Chua, directing analyst for M2M and connected world at Infonetics Research.
“We asked enterprises what’s driving their decisions to adopt M2M services, and the number-one factor is the never-ending pursuit of competitive advantage,” continues Chua. “This speaks to the need for M2M services to deliver a strong business case. As technologies continue to evolve and prices come down, enterprises will increasingly turn to M2M to lower operating costs, differentiate their brands, and create new revenue opportunities.”
SELECT M2M SURVEY HIGHLIGHTS
- A majority of enterprises surveyed expect the need for M2M services to increase over the coming year, validating the assumption made by the top global service providers (Vodafone, AT&T, Verizon, Orange, and Telefonica) that M2M will be a key growth area for their businesses
- Security is a top concern among respondents, as are regulatory issues and the complexity of the M2M solutions themselves, underscoring the need for customer education in these areas
- Just as it does in the smartphone world, network quality matters in M2M: According to enterprises surveyed, network quality is the top criteria for M2M service provider selection
- Not surprisingly, service providers who place a strong emphasis on network reliability and performance—namely Verizon and AT&T—also have significant mindshare in M2M
M2M SURVEY SYNOPSIS
For its 26-page M2M survey, Infonetics interviewed IT purchase-decision makers at 163 organizations in North America that are procuring M2M services or will trial or deploy them by the end of 2014. The survey explores the adoption of M2M services by type (data reporting, connectivity, data storage, etc.), by M2M device (surveillance cameras, kiosks, in-vehicle systems, smart meters, tracking devices, healthcare monitoring gadgets, etc.), by M2M access technologies (fiber, LTE, copper, etc.), and by vertical. Survey respondents also name who they consider the top M2M service providers to be, their annual M2M service cost per device, the length of their M2M service contracts, and more. To buy the M2M report, contact Infonetics:http://www.infonetics.com/contact.asp.
RELATED REPORT EXCERPTS
- Latest Infonetics M2M research brief: http://bit.ly/1ikIdLR
- Vendor consolidation continues in mobile M2M module market
- M2M services forecast to hit $31 billion, M2M connections to top 4 billion by 2017
- APIs playing key role in service delivery platform and M2M markets
Infonetics Research (www.infonetics.com) is an international market research and consulting firm serving the communications industry since 1990. A leader in defining and tracking emerging and established technologies in all world regions, Infonetics helps clients plan, strategize, and compete effectively. View Infonetics’ About Us slides at http://bit.ly/QUrbrV.