A new machine to machine (M2M) industry forecast from research firm Ovum strongly suggests that there are myriad opportunities for the mobile wireless operators to make a mark on the industry and to earn themselves potentially substantial revenue. Ovum, however, also notes its very strong belief that the operators are just as likely to leave this revenue on the table if they fail to develop solid business relationships and partnerships with the rest of the M2M industry players.
Ovum is now forecasting that over the next five years overall M2M revenues will grow to $44.8 billion, three times current revenue. The company also expects more than 30 percent of that growth to come from the Asia Pacific region. Ovum additionally notes that it anticipates revenues will grow slightly more slowly than connections. This last point, per Ovum, reflects both increasing competitiveness within the M2M market and the inevitable extension of M2M services into lower-value applications.
Ovum also forecasts that total global M2M connections will also more than triple—from 106.4 million in 2012 to 360.9 million in 2018, at a compound annual growth rate (CAGR) of 22.6 percent. Growth will be seen across all global regions, but it will be fastest in the Asia Pacific and the Middle East and Africa.
The most important M2M industry verticals in 2018 will be, not surprisingly, healthcare, manufacturing, and energy and utilities. These are forecasted to generate revenues of $7.9 billion, $7.1 billion and $7.0 billion respectively by 2018. Between 2012 and 2018 revenues in the Asia Pacific region are now forecasted by Ovum to grow to nearly $15 billion, which represents a CAGR of 26.5 percent during the same period...Read More
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