knowledge centre

M2M device connections, revenue and ARPU: worldwide forecast 2011–2021

The number of M2M device connections is set to grow at a CAGR of up to 50% worldwide in some sectors during the next ten years.

Machine-to-machine (M2M) device connections will grow to 2.1 billion by 2021, which will have far-reaching implications for communications service providers (CSPs), vendors and networks.

As growth in the number of mobile handsets slows in the developed world, M2M presents itself as the one of the next opportunities to connect commercial and consumer devices. Many operators in developed markets believe M2M represents the solution to generating new revenue streams and offsetting declining revenue from voice services and per byte of data.

This Forecast Report presents the annual update of Analysys Mason's M2M device connections forecast, which includes detailed ten-year forecasts of connections, revenue and ARPU for 7 sectors and 20 M2M applications, for eight geographical regions worldwide.

The report

This Report provides:

  • analysis of key forecast data for connections, revenue and ARPU, worldwide and for eight regions
  • a comparison of the trends in developed and emerging markets, and for fixed and mobile M2M solutions
  • a comparison of the latest forecast with our previous forecast
  • recommendations for CSPs.

The data annex

The accompanying Excel data annex includes more than 14 000 data points, providing ten-year forecasts of:

  • M2M device connections
  • M2M ARPU
  • M2M connectivity-related revenue.

The forecasts are split into the following seven industry sectors and 20 M2M solutions.

Industry sector M2M application
Automotive and transport
  • Commercial fleet tracking
  • Consumer connected cars
  • Residential connected alarms
  • Commercial connected alarms
  • Residential connected security sensors
  • Commercial connected security sensors
  • Cardiovascular disease monitoring
  • Other disease monitoring (for example, diabetes)
  • Body area networks
  • Video surveillance devices
  • Police patrol car first responder devices
  • Paramedic first responder devices
  • Fire fighter first responder devices
  • Commercial electric meters
  • Commercial water meters
  • Commercial gas meters
  • Residential utility meters
  • Point-of-sale terminals
  • Vending machines
Financial services
  • ATMs

All of these forecasts are split into the following eight geographical regions:

Developed markets Emerging markets
  • Central and Eastern Europe (CEE)
  • Developed Asia–Pacific (DVAP)
  • North America (NA)
  • Western Europe (WE)
  • Caribbean and Latin America (CALA)
  • Emerging Asia–Pacific (EMAP)
  • The Middle East and North Africa (MENA)
  • Sub-Saharan Africa (SSA)