HONG KONG - The United States is one of the largest and most advanced machine-to-machine (M2M) markets in the world, with M2M representing one in 10 of all mobile connections in the region, compared with one in 20 in Europe and one in 100 in Africa, according to the new GSMA report “Driving Innovation in Connected Living.
The US Flags the Future of M2M.” The US accounted for 35 million connections or 19 per cent of all global M2M connections at the end of 2013, a figure that is expected to reach 41 million this year, driven in particular by advances in the automotive, utilities and oil and gas sectors, according to GSMA Intelligence. US operators are meeting this burgeoning growth by forming strategic alliances and tactical partnerships with industry specialists to address the specific needs of a variety of vertical sectors.
The report also highlights that although the US M2M market is one of the biggest in the world, it is still in the early stages of its development and needs to address a number of significant challenges in order to fulfill its potential. The market currently lacks standardisation, which limits interoperability, causes fragmentation and restricts economies of scale, as well as the rate of growth. There is also relatively little co-operation between the private and public sectors in many parts of the economy and in some sectors, such as healthcare, there is a lack of regulatory clarity. However, despite these challenges, the market will also see growing demand in areas such wearable technology, connected cars and the connected home enabled by M2M connections.
“The US has taken a leading role in the deployment of next-generation network technologies and is now extending that far-sighted approach to M2M technology, particularly with innovative services in the Connected Car and Connected Home spaces,” said Alex Sinclair, Chief Technology Officer, GSMA. “However, without common, interoperable standards and appropriate regulation, the US market cannot reach its full potential. We look forward to continuing our work with US operators to help them deliver the full power of M2M technology and the Internet of Things, providing important socio-economic benefits to citizens and businesses alike.”
