M2M Revenue in Europe to exceed the United States & Asia by 2017, report says

M2M Revenue in Europe to exceed the United States & Asia by 2017, report says
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It’s a good time to be in Connected Objects… European digital think tank IDATE has concluded their annual M2M study which this year forecasts that the M2M market is set to take off in a big way, reaching €40 billion in 2017 on the back of 30% volume growth and 10% value growth over the period. While the market is set to grow at a healthy clip around the globe, Europe is set to outpace the US and Asia interms of revenue. Asia, will continue it’s strength on volume, outpacing other regions on this measure. For example, China, for instance, became the world leader in 2013 in terms of M2M module installations, overtaking the US.

Currently, the M2M market represents 175 modules worldwide, generating €24.2 billion in revenue. The bulk of the revenue generated, roughly two-thirds, has been generated by software and IT developments. As the market grows to almost double its size in 2017, IDATE predicts that utilities, automotive and consumer electronics will be the three verticals driving market growth. Utilities will, in particular, have a strong impact on how the market evolves as IDATE anticipates that it will dominate the market in terms of module numbers. As a mass market, consumer electronics will also have a tremendous impact on the market, making up a substantial portion of future active modules. However, the development of these sectors is not without risk as IDATE sees that continued delays rolling out certain applications by utilities and Europe’s eCall regulation could be impediments to growth.

Although the M2M market continues to have a low and declining ARPU, connectivity, which is expected to represent €12 billion in value by 2017 which is expected to be more than 3% of European telco provider’s revenue, is painting a much brighter future the M2M market.