Analyst firm Juniper Research has forecast the connected car market to grow faster than any other M2M segment and to account for a fifth of total passenger car revenue by 2019.
As part of a broader report on M2M, Juniper compares connected cars favourably to other fast-growing segments such as healthcare and retail. The firm reckons the overall M2M market will generate service revenues of over $40bn globally by 2019, which is twice the current amount.
As well as cars, Juniper believes smart metering is set to boom, fuelled by state efficiency and green initiatives, but it won’t generate the kind of revenues cars will.
“Both India and China are expected to see rapid adoption of smart metering as new metering infrastructure is installed and smart cities are created,” said Juniper analyst Anthony Cox.
Other observations include an acknowledgement of the growing importance of M&A in creating companies with the range of products and competences to create and commercialise innovative M2M and IoT products. Western markets are currently leading the way in M2M, but China is unsurprisingly set to be increasingly prominent. Lastly Juniper stressed the importance of big data analytics in getting the best out of M2M.