Well-publicised predictions of 50 billion plus connected devices by 2020 are wide of the mark, according to Tom Rebbeck, research director at consultancy Analysys Mason, and if anything have harmed the sector by raising and then dashing investors’ hopes.
But with Analysys Mason’s latest forecast showing that the number of M2M connections worldwide will grow by 29 per cent a year through to 2023, there are plenty of opportunities for cellular network operators to cash in on the rise of Internet of Things if they are prepared to diversify.
“Connectivity is only a small part of the M2M market,” said Rebbeck, speaking at an even organised by Cambridge Wireless in London yesterday. “If operators are only going to get into connectivity they are only going to get a tiny sliver of the market.”
Low revenue per user and a highly competitive market revolving around just a few sectors, such as utilities, automotive...