Machine-to-machine (M2M) Connections Market Size, Share and Trends

Updated on : October 07, 2024

Machine-to-machine (M2M) Connections Market Size & Growth

The machine-to-machine (M2M) connections market is projected to grow from USD 2.9 billion units in 2024 to USD 5.3 billion units by 2029, growing at a CAGR of 12.7% during the forecast period.

The growing popularity of smart cities and connected cars, the development of wireless technologies such as 5G, NB-IoT, and LTE-M, and increasing penetration of machine-to-machine (M2M) connections in advanced & portable healthcare equipment are expected to propel the machine-to-machine (M2M) connections market in the next five years. However, a lack of standardization in connectivity protocols will likely pose challenges for industry players.

The objective of the report is to define, describe, and forecast the machine-to-machine connections market based on technology, end-user industry, and region.

Machine-to-machine (M2M) Connections Market Forecast to 2029

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Machine-to-machine (M2M) connections market dynamics

Driver:  Growing popularity of smart cities and connected cars

The IoT infrastructure deployed by smart cities is required to handle devices and objects connected via different connectivity methods. Many cities are now seeking to expand the use of IoT to improve services such as waste management, water management and quality, and energy consumption in public buildings. The rising adoption of smart technologies in smart connected solutions has created new business opportunities for cellular M2M connections. IoT offers smart productive features and enhanced efficiency by providing connectivity among various household things using the Internet. Telecom service providers offer reliable connectivity solutions to various IoT applications. Cellular M2M communications play a critical role in the adoption and growth of distribution automation applications. It provides a reliable, easily available, and cost-effective network solution that enables enterprises to effectively support distribution automation applications. With improved penetration of cellular technologies such as 2G, 3 G, 4G/LTE, and 5G in technologically advancing countries, there is an increased need among end users to deploy distributed applications for improved load balancing, flexible pricing, and remote management. The adoption of autonomous driving is likely to increase in the coming years as driver assistance systems, such as adaptive cruise control, lane keep assist and parking assist, are likely to become more sophisticated. Many technology giants such as Google (US) and major car manufacturers such as Daimler (Germany), BMW (Germany), Volkswagen (Germany), Audi (Germany), Tesla (US), and Volvo (Sweden) are expected to launch fully automated cars by 2025. Therefore, the growth of the said market would further contribute to the growth opportunity for M2M technology-based solutions which form an integral component of self-driving cars.

Restraint: Lack of standardization in connectivity protocols

The growth of the M2M connections market largely depends on the development of specialized solutions for different application clusters such as security, transportation, healthcare, and automotive. These solutions need customizable hardware and software, which, in turn, entails higher costs for development, operation, and support. Due to the lack of standards, there is a demand for highly customer-specific applications that involve labor-intensive development by highly specialized integrators and developers. The low number of specialized developers and the high cost of employing them restrict the growth of this M2M market.

Opportunities: Emergence of M2M devices in Telemedicine

Healthcare's M2M adoption, sometimes called telehealth/telemedicine, is the use of medical devices and communication technology together to monitor diseases and symptoms. Telemedicine in the M2M economy also enables continuous and remote patient monitoring, leading to better healthcare outcomes. Wearable devices equipped with M2M technology, such as smartwatches or fitness trackers, can collect real-time data on vital signs, sleep patterns, and physical activity. This information can be transmitted to healthcare providers, who can then analyze it to detect any abnormalities or trends. By monitoring patients remotely, healthcare professionals can identify potential issues early on and intervene proactively, ultimately improving patient care. The adoption of modern technologies, like telemedicine apps, virtual hospitals, artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT), is growing quickly. Applications built with machine learning algorithms can aid in the identification of rare diseases, cancer, and other chronic illnesses. Moreover, growing consumer demand for technologically sophisticated technologies that enable remote patient monitoring would support market expansion. For example, AMC Health and GE Healthcare inked a cooperative agreement in October 2022 to provide virtual care in home care settings.

Challenges: Privacy and security

M2M can be defined as a subset of Internet of Things (IoT), and it faces challenges similar to the latter. The privacy and security of data is one of the key challenges that IoT/M2M may face in the near future. As the number of M2M connections increases, the data generated by them would also increase, and organizations handling this data could gain more knowledge about the market position of different companies spread across end-user industries. Organizations handling the information generated by the M2M connections can misuse the data to determine respective companies’ business strategies and production schedules, or can hack and take control of the machines and shut them down. From an industry standpoint, this is a cause for major concern.

Cellular M2m Market Insights and Growth Prospects:

The cellular M2M market is experiencing rapid growth driven by increasing demand for IoT-enabled applications and seamless connectivity across various industries. Cellular M2M solutions empower devices to communicate and exchange data over cellular networks, fostering enhanced automation, efficiency, and real-time monitoring capabilities. Key sectors such as transportation, healthcare, retail, and manufacturing are leveraging cellular M2M technologies to streamline operations, optimize asset tracking, and boost customer experience. With advancements in 5G technology, the cellular M2M market is poised for further expansion, supporting a wider range of high-bandwidth applications and unlocking new opportunities for scalable, reliable connectivity solutions on a global scale.

M2M Market Map/Ecosystem

Machine-to-machine (M2M) connections Market: Key Trends.

The prominent players in the machine-to-machine (M2M) connections industry are AT&T Intellectual Property (US), Cisco Systems, Inc. (US), Huawei Technologies (China), NXP Semiconductors N.V. (Netherlands), Texas Instruments Incorporated (US), Intel Corporation (US), China Mobile International Limited (China), Thales (France), Vodafone Group Plc (UK), Murata Manufacturing Co., Ltd. (Japan), and U-Blox Holding AG (Switzerland), and among others. These companies boast mixing trends with a comprehensive product portfolio and strong geographic footprint.

Non-cellular wireless technology machine-to-machine (M2M) connections are expected to grow at the highest CARG in the machine-to-machine (M2M) connections market during the forecast period.

The non-cellular machine-to-machine (M2M) connections segment is expected to account for a significant share and grow at the highest CAGR during the forecast period. Non-cellular M2M connection technology encompasses a diverse range of solutions for machine-to-machine communication without relying on traditional cellular networks. These technologies offer alternative ways for devices to connect and exchange data, catering to various needs and application requirements. The cellular technologies covered in this section include Sigfox and LoRa.

The healthcare segment is expected to hold the second highest CAGR of the machine-to-machine (M2M) connections market during the forecast period.

The healthcare segment is expected to witness for the second highest CAGR during the forecast period. The rising use of M2M (Machine-to-Machine) devices in telemedicine is creating exciting opportunities for the M2M connections market. This trend involves seamless communication between medical devices and healthcare systems, enabling remote monitoring, data collection, and even automated interventions, which benefit both patients and healthcare providers. The adoption of modern technologies, like telemedicine apps, virtual hospitals, artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT), is growing quickly.

Machine-to-machine (M2M) Connections Industry Regional Analysis

The machine-to-machine connections market is expected to have a high market share in China from the Asia Pacific region during the forecast period.

The Asia Pacific region continues to be a significant market for machine-to-machine (M2M) connections. The adoption of machine-to-machine (M2M) connection products and solutions has been more rapid in Asia Pacific than in other regions. A major industrial center, the Asia Pacific area is also a developing and significant market for a number of other industries. Some of the major factors supporting the growth of the M2M market in the Asia Pacific are the expanding Internet's penetration into both commercial and residential areas, as well as the region's large consumer base, rising disposable income, and developing IT infrastructure. It is anticipated that the Internet of Things is currently in its boom phase in terms of commercialization and convergence across all industries, particularly in Asia Pacific's growing economies. Large-scale investments and commercial expansion prospects are increasingly being drawn to the region from around the world. Because of the region's high levels of electronic device manufacture and consumption, Asia Pacific is predicted to experience significant growth. The adoption of new technologies and improvements in businesses across many industries is changing dynamically.

China was at the forefront of the M2M connections market in Asia Pacific in 2023 and is likely to continue its dominance during the forecast period, in terms of market size. The country’s aggressively developing economy contributes to the growth of the M2M connections market. Growing demand from the automotive & transportation sector will be one of the key drivers for the growth of the machine to machine market in China. Moreover, increasing product development by various companies is also driving the market growth. In 2019, Sunsea AIoT partnered with China Telecom to install over 500,000 NB-IoT sensors for monitors, five hydrant water pressure sensors, and gas and smoke detectors.

Machine-to-machine (M2M) Connections Market by Region

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Top Machine-to-machine (M2M) Connections Companies - Key Market Players

Major vendors in the machine-to-machine (M2M) connections companies include

• AT&T Intellectual Property (US),
• Cisco Systems, Inc. (US),
• Huawei Technologies (China),
• NXP Semiconductors N.V. (Netherlands),
• Texas Instruments Incorporated (US),
• Intel (US), China Mobile International Limited (China),
• Thales (France),
• Vodafone Group Plc (UK),
• Murata Manufacturing Co., Ltd. (Japan),
• U-Blox Holding AG (Switzerland), and among others.

M2M Connections Market Report Scope

Machine-to-machine (M2M) Connections Market Highlights

This report categorizes the machine-to-machine (M2M) connections market based on technology, end-user industry, and region.

Recent developments in machine-to-machine (M2M) connections industry

• In January 2024, Intel Corporation (US) set up an independent company offering enterprises a full-stack, vertically-optimized and secure generative artificial intelligence (genAI) software platform. With help from investment firm DigitalBridge, Intel has formed Articul8 to deliver AI capabilities that keep user data, training and inference within the enterprise security perimeter. The platform also provides the choice of cloud, on-premises or hybrid deployment.
• In August 2023, Huawei and Ericsson signed a long-term cross-licensing agreement that includes patents relating to a broad range of technology areas, including those covering 3G, 4G, and 5G cellular networks.
• In April 2023, Texas Instruments Incorporated introduced a new SimpleLink family of Wi-Fi 6 companion integrated circuits (ICs) to help designers implement highly reliable, secure and efficient Wi-Fi connections at an affordable price for applications that operate in high-density or high-temperature environments up to 105ºC.

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