Explosion in connected devices to spur M2M software market: study
By Manufacturing AUTOMATION
By Manufacturing AUTOMATION
The sheer growth in need for information, ability of enterprises to convert raw data into business insights, the increasing partnerships between systems, and the rising need for remote monitoring solutions for distributed assets are three drivers that have the greatest impact on the North American machine-to-machine (M2M) software and services market.
New analysis from Frost & Sullivan’s Analysis of the North American Machine-to-Machine Software and Services Market research finds the market earned revenue of $175.4 million in 2012 and estimates this to reach $788.4 million in 2018.
“The increased value proposition of extracting proprietary raw data and converting it into business insights promotes new M2M applications in a variety of end-user segments,” said Frost & Sullivan industry analyst Muthuraman Ramasamy. “The impact of this driver remains high throughout the forecast period, as a number of emerging applications will surface in the M2M space owing to the vast amount of data obtained from an ever increasing number of connected devices.”
Partnerships between network operators, device makers, platform providers, and system integrators help provide customers with end-to-end solutions, thereby fuelling market growth. Mobile network operators (MNOs) and mobile virtual network operators (MVNOs) that facilitate communication between the devices and the software platform are playing a significant role in the M2M space.
“The go-to-market strategy of direct sales will be replaced by a federated sales cycle, where device makers, platform providers, and system integrators are partnering with these MNOs and MVNOs to provide a complete, holistic solution for the end user,” added Ramasamy. “This, in turn, will lead to greater adoption of M2M solutions, as they provide a one-stop shop for customers for solutions across diverse vertical markets. Over time, the M2M market will see more forged partnerships arise to develop complete solutions customized for specific end-user segments.”
The service management space is a key focus area for OEMs trying to cut the large costs incurred on post-sales service, maintenance and repair. Remote monitoring is one of the key M2M applications across vertical markets that allows an enterprise to reduce service management costs and is expected to pave the way for a new breed of service excellence models.
“A number of vertical markets are seeing tremendous potential for remote monitoring,” said Ramasamy. “From monitoring assets in the oil and gas industry to remote health monitoring in the healthcare industry, the benefits of adoption are more clear to see.”
The M2M software and services market is clearly moving toward integrated solutions, with customers combining their legacy systems to enhance efficiency.