Cellular M2M—which uses CDMA, 2G, 3G, and 4G/LTE networks to help electronic devices ‘talk’—has become a cornerstone for a new breed of data transmission, with the global cellular M2M connections and services market expected to grow at a CAGR of 31.77% and 28.47%, respectively, from 2014-2019.
Expansion of LTE Networks Facilitating M2M Growth
At the moment, most M2M applications work relatively well with low data rate 2G networks, but a number of new data-guzzling M2M applications will require higher-speed connections to function.
Luckily, nearly 300 commercial LTE networks were deployed in 107 countries by the second quarter of 2014.
This expansion of faster networks is helping M2M technology revolutionize a few key industries, which are, in turn, expected to drive the cellular M2M connections and services market through the forecast period.
Automotive Industry
The demand for connected automobile M2M applications has increased significantly in the automotive industry with increased awareness about safety and security services among drivers.
In 2014, the US Department of Transportation drafted a proposal to make vehicle-to-vehicle communication a mandatory requirement for the US automotive industry. This proposal seeks to enable vehicle-to-vehicle communication through the help of M2M technology, which will help reduce accidents and traffic congestion and save a considerable amount of money on fuel.
POS Payments in Retail
Many retailers worldwide use M2M technology to execute secure real-time payments and transactions. Consumers also use M2M technology while making online payments through POS terminals. In addition, banks are using this technology to keep track of financial transactions in retail outlets and at ATMs. In the logistics industry, this technology is used in vending machines to track and monitor purchases made and enhance overall efficiency.
Supply Chain Management
M2M technology plays a pivotal role in the improvement of supply chain processes. M2M services allow companies to improve their existing supply chain processes by enabling the remote monitoring of vehicles, providing real-time updates on cargo shipments, inventory-level monitoring, fleet tracking, event-based monitoring, and inventory-condition monitoring.
For instance, Sure Track Courier in Southern Ontario, Canada, uses M2M technology to monitor vehicle data and driver behavior. The company was able to considerably reduce its fuel consumption toll expenses, (which were $2,000 to $3,000 per month) by tracking vehicle idle time and reroutes.
Healthcare Industry
The use of M2M technology has triggered a paradigm shift in the provision of healthcare worldwide. Doctors can monitor patients remotely, with the help of wearables, and patient data can be easily retrieved on a real-time basis. This basically translates into better, cheaper care for more people.
