Lately, the machine-to-machine (M2M) wireless communications
technology has been significantly driving wireless service
provider's mobile data revenues. Thus, M2M is a rapidly growing
market opportunity. According to a recent report of GSMA, Asia has
emerged as the world's largest M2M market with an astounding 40%
share. Within Asia, China alone accounts for over 25% global M2M
GSMA further stated that there were 189 million active global
M2M connections at the end of 2013, while China solely generated
over 50 million such connections. In Jan 2014, research firm IDATE
projected that the global market size of M2M communications will
reach more than $53 billion in 2018, substantially up from $33
billion in 2013. Over the same time frame, the number of M2M module
deployment is predicted to reach 470 million.
A typical mobile M2M messaging system establishes a wireless
communication link to connect a group of devices to a computer
server or another device for the purpose of transmitting data
contained within those devices. The M2M market provides the
opportunity to mobile-enabled millions of devices, like cars,
utility meters, vending machines and consumer electronics devices
to get connected to a wireless network.
Mobile M2M connections, which enable wireless data calls between
machines, have gained significant market traction. Thus, the
deployment of novel connectivity platforms to deliver seamless,
fully integrated M2M communication with global connectivity has
become an essential factor for the success of mobile service
Next-generation (4G) technology is also boosting the growth of
M2M segment as it provides exceptionally high data speeds. Massive
throughput and low-latency period of LTE (Long-Term Evolution)
technology enable easy access for large-scale applications like
fleet management, security, automotive, navigation, and video
Three major Chinese telecom operators, namely
China Mobile Ltd.
China Unicom Ltd.
China Telecom Corp. Ltd.
) are rapidly deploying LTE networks in the nation. In addition,
SK Telecom Co. Ltd.
) of South Korea, Taiwan Mobile of Taiwan, SingTel of Singapore and
Telkomsel of Indonesia are other major Asian M2M service
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
CHINA UNICOM (CHU): Free Stock Analysis Report
SK TELECOM CO (SKM): Free Stock Analysis Report
CHINA MOBLE-ADR (CHL): Free Stock Analysis
CHINA TELCM-ADR (CHA): Free Stock Analysis
To read this article on Zacks.com click here.