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Asia Pacific excluding Japan’s M2M market to grow

Anuradha Shukla | Aug. 28, 2013
IDC expects APeJ’s connected M2M market ecosystem to grow 127% from US$3 billion in 2012 to US$6.8 billion in 2017.

The Asia Pacific excluding Japan’s (APeJ) connected M2M market ecosystem is predicted to grow 127% from US$3 billion in 2012 to US$6.8 billion in 2017 by IDC.

The research firm advises the Asian telecom service providers to design a strategy to deliver and support the machine-to-machine (M2M) solutions lest they should lose the opportunity to tap this market.

Growth is predicted for the entire connected M2M market ecosystem including service connectivity, modules, platforms, applications, analytics, security and professional services.

IDC has also predicted growth in the number of M2M connections that will connect to the telcos' networks. These connections will grow 171 percent from 26.8 million to 72.5 million over the same period.

“The vast majority of telcos face a future with the declining or slowing of their traditional voice and data revenues,” said Charles Reed Anderson, Head of Telecoms, IDC Asia Pacific. “As such, they need to identify new revenue streams and business models to drive future revenue growth.” 

Lack of skill sets

Although there is a lot of excitement for the opportunities in the horizon, few Asian telcos have the skill sets currently to offer anything other than the network on which M2M solutions run.

The Asian telecom services providers should improve their existing internal capabilities and develop partnerships across the M2M ecosystem to stay in the race. 

The telcos need to build out their internal skills and make alliances with the application vendors to jointly develop the solutions that drive the market. 

China will account for 48 percent of total connections and 49 percent of total M2M spending by 2017. This will create a US$3.3 billion opportunity in this nation alone. 

“In recent years, many telcos have been slow to react to new market opportunities and have lost out as a result. As they continue to see the slowing of their traditional revenue streams, they realise that M2M is one opportunity they cannot afford to ignore,” added Anderson.

 

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