Over the next five years, the installed base of cellular M2M devices is projected to grow at a compound annual growth rate (CAGR) of 22.9 percent, according to a new research report from the analyst firm Berg Insight.
As per senior analyst Berg Insight and author of the report Tobias Ryberg the 1 billion milestone for cellular M2M subscribers will be reached in 2022.
The same report reveals that the global number of cellular M2M subscribers increased by 23 percent during 2015 to reach 265.2 million at the end of the year.
The largest regional market was East Asia was with 90.4 million M2M subscribers, followed by Western Europe and North America with 59.0 million and 52.5 million respectively.
As the cellular M2M market continues to grow, it is starting to generate substantial revenues for leading telecom operator groups. Verizon and Vodafone reported quarterly M2M/IoT revenues in the range of 150-200 million each in the first half of 2015 and could be on track to reach 1 billion on an annual basis within a few years’ time.
Both groups have substantial telematics businesses, originally established through acquisitions. Besides traditional connectivity and professional services, they generate a considerable share of their sales from automotive products, driver assistance services and connected automotive applications.