Tuesday, 11 October 2011

Machina Research identifies EUR1.3 trillion opportunity for connected devices and uses forecasts to support GSMA's Connected Life launch

So it's been a very busy couple of weeks. We've been focused on two main things. First of all completing our Connected Intelligence database, which we now believe is the most comprehensive forecast database for M2M connections, traffic, revenue splits, technology etc.

Secondly we've been doing a lot of work to use our data to support the GSMA's new Connected Life programme. Jim is over in San Diego at the CTIA Enterprise & Applications show and yesterday shared a platform with AT&T, Qualcomm and the GSMA to announce the launch. If you want to know more about Connected Life, click here.

Clearly to support an initiative that is as far-reaching as that envisaged by the GSMA requires a partner that understands how connectivity will affect every aspect of work and home life. We have that understanding and we have the forecasts to back it up.

Over the next week or so I'll be highlighting some of the figures that are coming out of our newly completed forecast database. Some have already been released as Machina Research press releases. In the meantime, I will flag up the following:

  • Overall connected devices will treble over the next ten years, from 9 billion in 2011 to 24 billion in 2020.

  • The lion’s share of the growth will come from machine-to-machine connections , which will grow from two billion at the end of 2011 to 12 billion at the end of 2020. The majority are expected to be connected via short-range technologies such as WiFi. Machina Research expects 2.3 billion will be cellular connections in 2020, accounting for 19% of all cellular connections. Overall M2M revenue will grow to EUR714 billion in 2020.

  • PC/laptop mobile broadband will grow dramatically, from 215 million connections at the end of 2011 to 1.5 billion in 2020 as device costs come down and network coverage and capacity improves. By 2020 most PC/laptop broadband connections globally will be mobile. Wireless wide-area connected tablets and eReaders will grow from 66 million in 2011 to 230 million in 2020.

  • Growth in handset data users will also be significant, with 3G+ (i.e. 3G, 4G and potentially beyond) devices set to grow from 2 billion at the end of 2011 to 9 billion by 2020.

  • The growth in PC/laptop, tablet and handset data usage will result in a massive increase in data. Machina Research forecasts that globally mobile data traffic will increase from 4 exabytes in 2011 to 42 exabytes in 2020, with 60% coming from PC/laptop connections and 37% from handsets.

  • Total revenue from connected devices will grow from EUR420 billion in 2010 to EUR1.3trillion in 2020. Machina Research expects mobile network operator data revenue to grow from EUR130 billion in 2011 to almost EUR500 billion in 2020.

For more details on everything to do with Machina Research, see our website.

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