Asia pacific companies lead in M2M adoption

In 2014, 27 percent of AMAP (Asia Pacific) based companies on average have adopted M2M solutions, a 15 point increase over 2013.

M2M, which connects previously isolated machines or devices to the internet to make the ‘Internet of Things’ possible, is now a mainstream solution as 22 percent of organisations on average globally have adopted M2M, an impressive increase of over 80 percent on last year. Average adoption rates were 21 percent in Europe and 17 percent in the Americas.

Globally three sectors have emerged as front runners in M2M with nearly 30  percent adoption rates from automotive, consumer electronics, and energy & utilities. Vodafone’s report shows that the consumer electronics sector is at the forefront of a shift from the warehouse to the living room.

Automotive is the most mature of the sectors where M2M is now seen as an enabler for additional services such as remote maintenance and infotainment. M2M adoption in energy and utilities is also growing rapidly as ‘smart’ home and office services such as intelligent heating and connected security gain popularity.

Director of M2M in Asia Pacific, Vodafone, Niklas Ekarv said, “This year’s report findings leaves no doubt that momentum is accelerating as companies in Asia Pacific begin to realise the commercial potential of the Internet of Things. Greater China is expected to dominate Asian M2M revenues as per Machina Research; followed by Japan, India, Korea and Australia. Vodafone has invested in capabilities across Asia Pacific to become the provider of choice for M2M solutions.”

Principal Analyst at Machina Research, Alex Chau said, “We estimate that the market in Asia Pacific is expected to grow to over 9.4 billion connections by 2023 and is expected to be worth over $679 billion in revenues – a 4x multiplier increase over 2013.”

Vodafone Group published its second annual ‘M2M Adoption Barometer’, a global survey of the machine-to-machine (M2M) market, which finds that companies in Asia Pacific were among the leaders in M2M adoption globally. The survey, carried out by Circle Research, captured the views of more than 600 executives – 38 percent of whom were from the AMAP region – involved in setting M2M strategy in seven key industries across 14 countries.

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