More Machines Talking to Machines

Jan. 25, 2011
A Report From Berg Insight Shows That Machine-to-Machine Communications Accounts for a Growing Number of Mobile Network Connections. The Trend Extends Into Industrial Connections, Too.

A trend that sees machine-to-machine (M2M) communications accounting for a growing percentage of mobile network connections with consumers also extends into industrial manufacturing, according to analysis from Berg Insight in Göteborg, Sweden.

The number of M2M subscribers increased 46% in 2010 to more than 81 million, bringing its share of the mobile network connections worldwide to 2%. That share is expected to increase to 4% by 2015; wireless M2M connections are forecasted to grow at a compound annual growth rate (CAGR) of 32% to reach more than 294 million connections in 2015.

M2M and connected devices represent key drivers behind the growth in mobile subscribers in Europe and North America, according to Tobias Ryberg, senior analyst at Berg Insight. The business cases are clear for M2M use in the industrial sector as well, he says, where demand has recovered along with the rest of the economy.

“Adoption of M2M technology in the industrial sector in general is an organic process where more and more enterprises introduce and expand the use of the technology,” Ryberg says. “OEMs increasingly offer factory-installed M2M solutions, and the availability of aftermarket systems is increasing.”