ATLANTA - Tuesday, September 23rd 2014 [ME NewsWire]
M2M Represents 10 Per Cent of All Mobile Connections in the US,
Driven by Huge Growth in the Automotive and Utilities Sectors;
US Accounts for 19 Per Cent of All M2M Connections Worldwide
(BUSINESS WIRE)-- 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.”
The Automotive Opportunity
The US currently has 250 million cars on its roads, with 15.9 million
either registered or purchased in 2013, according to the Organisation
Internationale des Constructeurs d’Automobiles (OICA). In this context
it is easy to understand why the automotive sector remains the largest
addressable market for future M2M growth in America. Consumer demand for
in-car connectivity and services such as fuel consumption, safety
monitoring, real-time news, maintenance and even pay-as-you-drive
insurance subscriptions are growing apace.
M2M Technology in Utilities and Home Automation
The US has also been fast to deploy smart grids that use connected
smart meters to track energy consumption in real time and enable a
homeowner or business to remotely monitor their use of power, with 43
million smart meters installed across the country as of the end of 2012.
In many cases, smart meters may be integrated into a broader home
automation system that enables the householder to remotely control
heating, air conditioning, lighting and even individual appliances, such
as security cameras or burglar alarms. There were approximately 2.3
million smart home installations in North America in 2013.
Embedded SIM to Accelerate M2M Market
AT&T recently became the first operator in the United States to
launch the GSMA Embedded SIM specification. The GSMA’s Embedded SIM
specification allows mobile network operators to provide scalable,
reliable and secure connectivity for M2M connected devices that are
often hermetically sealed, such as in the connected car or smart meters.
It also facilitates over-the-air operator provisioning and management,
which provides service flexibility to end customers. The GSMA’s Embedded
SIM specification promotes a common global architecture that will
reduce costs, drive efficiencies and further accelerate the rapidly
growing M2M market, which is set to reach 244 million global connections
this year, according to GSMA Intelligence.
To download the report, please visit: www.gsma.com/newsroom/wp-content/uploads/us-m2m-2014.pdf.
About the GSMA
The GSMA represents the interests of mobile operators
worldwide. Spanning more than 220 countries, the GSMA unites nearly 800
of the world’s mobile operators with 250 companies in the broader mobile
ecosystem, including handset and device makers, software companies,
equipment providers and Internet companies, as well as organisations in
industry sectors such as financial services, healthcare, media,
transport and utilities. The GSMA also produces industry-leading events
such as Mobile World Congress and Mobile Asia Expo.
For more information, please visit the GSMA corporate website at www.gsma.com. Follow the GSMA on Twitter: @GSMA.
Contacts
for GSMA
Elli Karagiorgas (UK)
elli.karagiorgas@webershandwick.com
+44 (0)207 067 0496
or
Kate Hudson Burdett (US)
khudson2@webershandwick.com
+1 206.914.3533
or
GSMA Press Office
pressoffice@gsma.com
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