According to the new market research report, the machine-to-machine (M2M) connections market is expected to be worth USD 27.62 billion, growing at a CAGR of 4.6% from 2017 to 2023. The number of M2M connections was 1.47 Billion connections in 2016 and is estimated to reach 3 Billion by 2023.The major drivers for the growth are the growing penetration of the Internet, favorable regulatory mandates, increasing M2M connections among various industry verticals, and growing adoption of connectivity technologies such as 4G/LTE and Bluetooth Smart/BLE.
In the connectivity technology segment, wireless technology holds the largest share of the M2M connections market in terms of the number of connections. The market for wireless technologies is expected to witness the highest CAGR from 2017 to 2023. This is mainly because wireless connectivity offers various advantages over wired connectivity such as increased mobility and collaboration, improved responsiveness, better access to information, easier network expansion, and enhanced guest access.
The automotive and transportation sector held the largest share of the M2M connections market followed by the utilities vertical. The growing number of connected cars and the development of vehicle-to-vehicle and vehicle-to-infrastructure framework are driving the growth of this sector. The development of smart city projects and favorable regularity mandates for the adoption of smart grids and smart meters is expected to lead to the high CAGR of the market for utilities.