Machine-to-machine (M2M) revenues worth $1.2 trillion to operators by 2020 – GSMA

The machine-to-machine (M2M) market will represent a $1.2 trillion revenue opportunity for mobile operators by 2020, according to the GSMA.

The industry body gathered together AT&T, Vodafone, KT Corp, Telenor Connexion, Deutsche Bank and analyst firm Machina Research on Tuesday to make its prediction and to talk up the growth potential of this relatively new sector.

"We are entering the next phase in the development of the mobile industry, one where we will see mobile connect everything in our lives," said a statement from Michael O'Hara, the GSMA's chief marketing officer, who referred to this next phase as the "Connected Life".

The GSMA said by 2020 there will be 24 billion connected devices, 12 billion of which will be mobile connected devices, compared to the 6 billion that are online today.

"Most of that growth is coming from machine-to-machine," said Machina Research director Jim Morrish. "The way that mobile operators, device vendors, service providers and others in the value chain react to this opportunity will have important implications for their future success."

According to the GSMA and its various partners, by 2020 the consumer electronics industry could generate M2M revenues of around $445 billion; the automotive sector could generate $202 billion in revenues; and the healthcare and utility sectors could generate revenues of $69 billion and $36 billion respectively.

"Right now, the mobile industry has a clear opportunity to play a central role in the Connected Life," said Morrish, because they can provide ubiquitous connectivity; customer care; billing and distribution services; and their brands are trusted by both consumers and businesses.

It is not just terrestrial mobile operators that are benefitting from the growth in M2M, either. Satellite operator Iridium revealed in September that M2M data customers account for almost a third of its non-government subscriber base. Ultimately, the GSMA said success in the M2M sector depends on cooperation that spans myriad industries.

"Capitalising on this enormous opportunity requires collaboration across the entire ecosystem to demonstrate how mobile technology in everything from tablet PCs to new healthcare devices can enhance people's personal and business lives," said O'Hara