M2M joins the Australian mainstream
Leading edge technology sector to be worth $530 million by 2019
The Australian market for machine-to-machine technologies will be worth half-billion dollars a year in five years, dominated by growth in the transport and logistics, retail and healthcare sectors.
Connected Nation: M2M in Australia 2014-2019, commissioned by Vodafone and undertaken by telecommunications research firm, Ovum*, looked at Australian firms’ deployment of or plans to deploy machine-to-machine technology, known as M2M. This technology connects previously isolated machines or devices to the internet, delivering new functionality and enhanced services without the need for human intervention.
“The research found the transport and logistics sector has the highest level of M2M adoption in Australia, with 44% of businesses having applied at least one solution while a further 22% are considering their use of the technologies,” said Vodafone Australia General Manager of M2M, Justin Nelson.
“We estimate the value of M2M in the transport and logistics sector will grow to around $81 million in five years and to be focused on fleet management, supply chain and safety applications.
“However, it is the retail and wholesale sector that is predicted to lead the Australian M2M market in five years, with an annual value of $82 million. To date, 13% in this sector have deployed M2M applications, particularly for point-of-sale and asset-tracking, and 32% say they are in the process of deploying.
“This sector is being motivated by the desire for productivity gains as well as ever-present pressure on margins,” Mr Nelson said.
Key findings in the report:
- Sectors to watch: Healthcare (telehealth applications) and energy and utilities (smart metering) are expected to grow rapidly (2019 values of $79m and $78m, respectively
- Energetic adoption: Almost half of the businesses in the energy and utilities sector have started incorporating M2M and more than a quarter are factoring it into future plans
- The top four: The most common M2M applications by type are security and safety, asset management, industrial automation and supply chain
- Integrate, apply, connect: Investment in service integration is expected to be worth more than $269m per annum, followed by application development ($131m) and network connectivity ($111m)
“Vodafone expects the value of M2M application development and network connectivity to be worth almost a quarter of a billion dollars annually within five years,” Mr Nelson said. “We are focusing on key sectors we believe have the capacity to grow significantly and to expand our profile in the M2M market.
“Vodafone is widely recognised as the global market leader in M2M managed communications, however our acquisition of Italian telematics company, Cobra, demonstrates we are looking to expand or end-to-end capabilities in the M2M arena.
“We are basing our strategy around a superior, global M2M product, the world’s most extensive connectivity network, proven end to end capability and more than 20 years experience in the field.”
The Vodafone M2M Adoption Barometer 2014
Mr Nelson said the Australian report largely reflects global adoption rates outlined in the Vodafone’s global M2M Adoption Barometer 2014.
“Vodafone’s annual survey of more than 600 businesses around the world showed an 83% increase in M2M adoption between 2013 and 2014.
“Globally, M2M is entering the mainstream, and we expect around 55% of global businesses to have an M2M solution in place in two years.
“So far, 22% of these businesses have adopted some form of the technology, led by strong growth in the Asia-Pacific, Africa and the Middle East, with 27% adoption.
“The Barometer also found M2M is moving from internal applications in warehouses and supply chains to more customer-centric applications, such as connected devices, smart homes and connected vehicles.
Notes to editors:
*The report was commissioned by Vodafone and is based from research undertaken by Ovum as part of its Large Enterprise Insights survey, August 2014.
More information on Vodafone Australia’s domestic M2M activities
More information on Vodafone’s global M2M activities