The number of mobile network connections for machine-to-machine communication will increase by 21 per cent in 2014.
This would bring the total to 213.9 million by the end of the year, according to a new research report from analysts Berg Insight, with East Asia, Western Europe and North America the main regional markets, accounting for around 75 per cent of the installed base.
According to Berg, technology adoption in Europe and North America is being driven by what they call the concept of ‘connected management’, which enables companies to collect and analyse data to improve services – for example connected cars enabling fleet operators and governments to manage tax and insurance premiums remotely.
“The IT revolution has created new opportunities to collect and analyse data for the purpose of managing objects and behaviours,” said Tobias Ryberg, senior analyst at Berg. “Connected management is based on the connection of remote devices to applications for the purpose of managing assets and products, costs and revenues, relationships and behaviour etcetera.”
In the next five years the Swedish firm expects the global number of wireless M2M connections to grow at a compound annual growth rate of 22.9 percent to reach 599.7 million in 2019.
China has emerged as the world’s largest market for wireless M2M communications in terms of installed base, according to the report, and recorded massive growth rates in recent years thanks to the influence of centralised planning by the national government.
Wide adoption of M2M technology across many industries now means that a substantial share of M2M device shipments is now generated from replacement sales, the report adds.