Asia to Drive Mobile M2M Business - Analyst Blog

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 connections.

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 providers.

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 content.

Three major Chinese telecom operators, namely China Mobile Ltd. ( CHL ), China Unicom Ltd. ( CHU ) and China Telecom Corp. Ltd. ( CHA ) are rapidly deploying LTE networks in the nation. In addition, SK Telecom Co. Ltd. ( SKM ) of South Korea, Taiwan Mobile of Taiwan, SingTel of Singapore and Telkomsel of Indonesia are other major Asian M2M service providers.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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