Asia and Oceania are set to jointly host the highest growth of M2M market growth between 2015 and 2019, with the region expected to see over 200 million new connections within that period, according to technology analyst firm Ovum.
Ovum's Cellular Machine-to-Machine (M2M) Forecast: 2014-19 made projections placing the total value of the cellular M2M market for 2015-19 at $252 billion.
After the Asia and Oceania region, Europe and the Americas are expected to see the highest rates of growth among the M2M technology market.
The M2M technology ecosystem, which plays a large part in the fast-emerging Internet of Things sector, is expected to be host to 162 percent growth of new connections globally over the next five years to a total of 530 million, according to Ovum.
Ovum also said that operator revenue share of the total cellular M2M market could rise to $25 billion by 2019. As of 2013, operator revenue was largely comprised of managed connectivity and network-level data transport.
However, Ovum said it believes that with figures anticipating the largest revenue opportunity to be within other layers such as integration, operators need to start looking beyond connectivity to reap the larger rewards.
"Over the past few years, as the hype around Internet of Things has taken off — driven by some wildly exaggerated forecasts — we've seen operators take a gentle approach to M2M," said Ovum senior analyst Jamie Moss. "Staying within their main expertise, most have taken on management of the connectivity layer, yet, as conventional wisdom tells us, only minor returns will be made here.
"Instead, operators need to leverage their other capabilities, namely their ability to aggregate large amounts of data around their customers," he said. "We're seeing device and application management become the new focus in M2M, and the ability to collect vast amounts of data will be of considerable value.
"Data itself has intrinsic worth, but it is the business decisions made based on the aggregation and analysis of that data that are the greatest source of value for enterprises and their connected service provider partners," he said.