M2M Services Projected to Generate Billions in the Next Few Years

Suren Arustamyan at JeraSoft

On the back of connectivity developments for vehicles, new business opportunities will emerge, driving traffic demand on this network. The research agency Technavio released a report on the machine‑to‑machine (M2M) services market, defining them as value‑added services for operators.

The study covered all global markets except those in Europe. According to Technavio, M2M services generated $38 billion (€32.37 billion) in 2021, and the market is projected to grow at an average annual rate of 41%.

The primary catalyst for this growth is the demand from businesses and city authorities for new mobile services, which will significantly replenish revenue streams for mobile operators. Operators own the road and traffic networks, while satellite operators focus on the internetisation of aircraft and sky‑based communications.

Another critical direction is transport monitoring: future vehicles will carry sensors that enable satellite‑based movement tracking.

Researchers see M2M penetration into vehicle retail as a new frontier. Marketing tools will inform consumers around or inside various locations, engaging them in the buying process. Over time, this will extend to advertising and tailored marketing offers.

Beyond traditional outdoor advertising (stands, leaflets, posters), mobile M2M services allow advertisers to instantly adapt message content to a vehicle’s tracked location and personalize it based on the driver’s known preferences.

The market research categorises participants into M2M application and solution providers, communication operators, equipment manufacturers, system integrators, and sensor manufacturers. Some mobile operators are already targeting specific niches, intensifying competition. Companies are forming strategic alliances to jointly develop solutions that combine their competencies.

Additionally, the researchers note that the market is entering a merger and acquisition phase, enabling large players to expand geographic coverage of their solutions and services. The largest players identified include AT & T, Sprint, Verizon, and Vodafone. Other notable firms are Amdocs, China Mobile, China Telecom, Digi International, Gemalto, KDDI, Numerex, Orange Business Services, Sierra Wireless, Rogers Communications, Tech Mahindra, Telefónica, Telenor, Telit, and T‑Mobile USA.

The author of this blog is Suren Arustamyan, COO at JeraSoft