If you can recall, Ericsson caused a stir two years ago when it predicted that the total size of the "connected devices" market could hit 50 billion by 2020. That definitely meant a lot of devices. Maybe more than the entire population of the human race.
But a new study conducted by GSMA claims that the number of M2M-capable “connected devices” will hit 24 billion in 2020, fuelling a boom that has the potential to create an extra US$1.2 trillion in revenue for mobile operators – a sevenfold increase over expected revenues in 2011.
According to Mobile Business Briefing,
The new study – a collaboration between the GSMA, AT&T, Deutsche Bank, KT, Telenor Connexion and Vodafone, and citing data from Machina Research – forecasts that the number of connected devices will rise from about 9 billion today. Of the 24 billion by 2020, “mobile connected devices” are expected to account for 12 billion, up from 6 billion today.
The study defines "mobile connected devices" as those that can connect directly to a mobile network, usually via a SIM. The wider "connected devices" market also includes so-called "short range devices" (for example, those that are Wi-Fi only), which includes devices such as remote sensor and monitoring devices, PCs, laptops and tablets, and femto cells and routers.
The GSMA pointed that the US$1.2 trillion figure is the “addressable revenue that a pure-play mobile network operator (MNO) could potentially compete for a share of,” in the form of mobile device sales, data traffic, applications, system integration, installation, and – most significantly – specific service revenue.
The addressable opportunity for MNOs that have access to fixed infrastructure and systems integration capabilities is clearly going to be greater.
The consumer electronics industry is expected to account for the lion’s share of this revenue opportunity by 2020 (US$445 billion), followed by automotive (US$202 billion), healthcare (US$69 billion) and utilities (US$36 billion). On a regional basis, Asia-Pacific is forecast to account for the majority of the US$1.2 trillion (US$447 billion), followed by Europe (US$305 billion), North America (US$241 billion), Latin America (US$92 billion), and the Middle East & Africa (US$87 billion).
Whoa, that’s a lot of money to be made.
If you can recall, Ericsson caused a stir two years ago when it predicted that the total size of the "connected devices" market could hit 50 billion by 2020. That definitely meant a lot of devices. Maybe more than the entire population of the human race. But a new study conducted by GSMA ...