One billion cellular M2M connections by 2020


Beecham Research predicting huge growth over the next five years but warns against ludicrous projections of other bodies

There will be almost one billion cellular machine-to-machine connections (M2M) by the year 2020, according to Beecham Research.

The analysts are predicting 30 per cent CAGR over the next five years with cellular connections rising from just 172 million in 2013. M2M covers areas such as the connected car, smart metering and other applications that will make up the Internet of Things.

However, the research group cautioned against some of the hype around M2M and Internet of Things growth projections which it described as “ludicrous”.

For example, Cisco and Ericsson have both stated that there will be more than 50 billion connected devices globally by the year 2020. However, these figures include mobile handsets and devices that would use WiFi connectivity.

“An average growth rate of nearly 30% per annum over the next few years represents both a very strong and exciting opportunity in a services market that is substantially business-to-business,” said Beecham Research founder and CEO Robin Duke-Woolley.

“Unfortunately there are some ludicrous, multi-billion connected device forecasts around at present for M2M and IoT that betray a complete lack of understanding about how the market really works. Much faster growth rates are just not realistic in this market because enterprises do not assimilate new technologies into their business processes that quickly.”