We have a company tradition where at the beginning of every year, we put down some predictions about M2M/IoT trends and developments that we think our customers and eco-system partners might find insightful and helpful. Last week we undertook a fun little forensic investigation into our historical accuracy in terms of our predictive track record when it comes to identifying trends over the years past.. We found that, save for a couple bold misfires, we’ve been pretty steady performers. As a matter of fact, most of the time our misses were due to our being about a year ahead of the curve. Nonetheless, we continue to succeed because we’ve dared to fail.
That said, here’s how we believe market trends, speculation, and a little wishful thinking will coalesce to keep us on our toes over the next 12 months.
In 2014, M2M will make a perceptible shift to richer data transport, with devices coming online that yield a much higher usage profile than our market has ever seen, leveraging both capacity (think “Big Data”) and more attractive rates. This drop in cost per connection has made possible applications including cellular backup of enterprise routers (in place of maintaining that extra T1 line), M2M-controlled digital advertising and continuous video surveillance, even from the most remote locations on Earth. Provider business models will experience a commensurate shift and these changes will continue to accelerate growth at a +20% clip in terms of new device activations.
Even just a casual flip through the headlines coming out of this year’s Consumer Electronics Show begins to lend credence to our reasoning.
Clearly, there’s a phase shift taking place in both the variety and volume of objects being purported to “get a brain” within the Internet of things. There’s a growing credibility for the projected billions of connected devices that may one day dot the earth; Gartner now says we can expect up to 26 billion devices by 2020, with more than $300 billion in new incremental revenue being created, mostly in new recurring service fees. Not that Gartner is a be-all, end-all authority in this space, but it’s certainly a well-regarded third party.
Even as most of the devices showcased at CES are best considered working prototypes, with potential the primary weighted factor, it is interesting to consider just how far we’ve come in one year’s time. The big buzz at last year’s show was the laughable connected fork, designed to help you lose weight by notifying if you were eating too fast. This year, the buzz is notable in the multiplicity of applications, from headgear that will measure and report impact in contact sports, to thermostats that will adjust heating or cooling as residents get closer to home, to sensors for measuring and helping to improve an athlete’s form in skilled sports such as basketball, tennis and golf.
And with wireless airtime as the common denominator to tie all these things together, we are certainly pleased to see such variety coming online.
By Stein Soelberg, Director of Marketing
Stein leads a team whose responsibility is to own the branding, advertising, customer engagement, loyalty, partnership and public relations initiatives designed to propel KORE into the 21st century. With over 15 years of technology marketing experience in the business to business software, Internet services and telecommunications industries, Stein brings a proven track record of launching successful MVNOs and building those brands into leaders.