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Consumer Electronics and Manufacturing Sector to Drive M2M Adoption

commercegatewayThe need to gain competitive advantage within the consumer electronics and manufacturing sector will drive half of companies to adopt M2M (machine-to-machine) technology by 2015, according to Vodafone.

Vodafone’s first annual M2M Adoption Barometer 2013 report found that 78 percent of respondents see M2M adoption as crucial to business success.

M2M technology allows different types of machines to communicate and exchange information with each other.

“Economies of scale combined with industry tailored packages mean M2M adoption is set to undergo rapid acceleration in the coming years,” said Steve Hilton, principal analyst at Analysys Mason in a public Company statement. “The impact of M2M on business efficiency can’t be overstated making it an essential ingredient for the future of most, if not all, industries.”

“This means there is going to be a race to deploy to ensure competitive advantage,” Hilton concluded.

Surprisingly, smaller organizations are said to be adopting M2M technology at a faster pace than larger enterprises. Moreover, the geographic spread shows a higher adoption rate in Asia Pacific, with Europe following closely, than that of the Americas.

Of the many trends driving adoption, three stood out amongst the rest. First, the declining price of M2M technology is set to be the first major reason for adoption. Second, as mentioned previously, smaller organizations will be more inclined to take-up M2M technology over large enterprises; which have historically been the large majority of M2M adopters.

Lastly, due to increased demand for connected devices such as e-readers with seamless content download and connected game consoles and smart TVs along with manufacturers creating low cost rivals, the manufacturing and consumer electronics market will grow faster than any other sector in M2M adoption.

Erik Brenneis, director of M2M at Vodafone, commented publicly on his company findings, “This report highlights that the next two years are going to be the real game changer for the industry.”

“Smaller companies will, for the first time, be able to reap the benefits of M2M. Adoption in Asia Pacific will challenge the current established players and I think that we are clearly at a tipping point for many industry sectors.” Brenneis adds, “Overall, wherever you are in the M2M world this is an exciting time.”

While the consumer electronics and manufacturing sector will reign over other markets soon, for now, the automotive sector holds the largest adoption rate at 19 percent due to the growth in connected cars.  Energy and utilities come in at second with 13 percent followed by transport and logistics at 12 percent, consumer electronics and manufacturing at 11 percent and consumer goods and retail with 10 percent.

Of the 327 executives surveyed, 94 percent said their businesses see some return from M2M, while 36 percent said they see a “significant” return. Respondents also said they’ve noticed improvements in decision-making since the launch of their M2M strategy.

“It’s difficult for enterprises to fully comprehend the value of the data they will receive from M2M connected devices. M2M is such a shift in the way we value the objects in our life,” said Hilton. “M2M can literally give voice to every non-human object. And even better, that voice is translated into a language we can understand using data aggregation and analytics.”

“It’s a completely radical concept and it doesn’t surprise me that the cost savings benefits are eclipsed by other more powerful benefits post-launch,” concluded Hilton.

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