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China to continue leading the global M2M market over the next five years

Nurdianah Md Nur | June 29, 2016
The country’s growth in the M2M market is drive by its large smartphone base and ambitious government plans for IoT.

China, the current leader of the global machine-to-machine (M2M) market, is expected to continue its dominance over the next five years, according to EY's report, M2M in China: Opportunities to build on global leadership.

The country is expected to see tremendous growth in that area due to its large smartphone base and ambitious government plans for the Internet of Things (IoT).

 "Support from the Chinese Government and its mandate for China to become a nation of smart cities has been crucial to building the necessary critical mass for M2M to drive the country's future mobile internet era. Together, Chinese operators and the Chinese Government have enabled the market to grow dramatically in a relatively short time, laying the foundation for further expansion and accelerated development of the IoT," Steve Lo, Greater China Technology, Media & Telecommunications Market Segment Leader, Ernst & Young, explained.

The report also identified the industries driving the adoption of M2M solutions in China. Telcos in the country, for instance, are set to take advantage of the IoT opportunity by leading the development of services related to IoT, and engaging with smart city projects initiated by Chinese city authorities.  

However, Holger Forst, Global Telecommunications Assurance Leader, Ernst & Young, advised telcos to engage in cross-sector partnerships, form alliances with competitors, and collaborate with third party vendors in order to deliver "robust and innovative solutions".

Bold "acquisition strategies can also position telcos for a greater share of M2M industry revenues". This is because it brings a mixture of customers, vertical expertise and development capabilities to operators and service providers. Utilities and transport are two priority sectors where, according to the report, operators may need to consider investment.

Other industries that are using M2M technology to deliver improved services include logistics, securities and healthcare. According to the report, wearables and connected car markets will also see significant growth potential in future. 


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