The M2M connections market is expected grow from USD 19.31 billion in 2016 to USD 27.62 billion in 2023, at a CAGR of 4.6 percent from 2017 to 2023, estimates MarketsandMarkets. The number of M2M connections was 1.47 billion connections in 2016 and is estimated to reach 3.00 billion by 2023. The major drivers for the growth are the growing penetration of the Internet in emerging economies and favorable regulatory mandates. Moreover, the increasing M2M connections in various industries and the growing adoption of new connectivity technologies such as 4G/LTE and bluetooth smart/BLE further accelerate its market growth.
In the connectivity technology segment, wireless technology holds the largest share of the M2M connections market in terms of the number of connections. Moreover, market for wireless technology is expected to grow at the highest rate in the M2M connections market from 2017 to 2023. The growing adoption of short-range wireless connectivity technologies such as WiFi, bluetooth, and ZigBee for multiple applications such as in-car infotainment systems, patient monitoring devices, wireless beacons, and smart appliances is driving the growth of the market for the wireless technology segment. Moreover, the substantial penetration of cellular services globally and increasing adoption of 4G/LTE cellular technology is further driving the growth of the wireless connectivity technology in the M2M connections market.
Of all the regions, Asia-Pacific held the largest market share in terms of revenue and is expected to grow at the highest CAGR from 2017 to 2023. The APAC region is a leading industrial hub as well as an emerging and important market for several other sectors as well.