ABI Research is out with a new forecast which calls for the M2M analytics industry to grow a “robust” 53.1% over the next 5 years from $1.9 billion in 2013 to $14.3 billion in 2018.
The forecast includes revenue segmentation for the five components that together enable analytics to be used in M2M services: data integration, data storage, core analytics, data presentation, and associated professional services.
“Analytics will play a critical role in the evolution of M2M, serving as the foundation for an increasing number of M2M business cases,” says senior analyst Aapo Markkanen.
“In essence,” Markkanen adds, “such analytics-driven business cases will be about making previously opaque physical assets part of the digital data universe. M2M has thus a very synergetic relationship with the wider big data space, with growth in one industry driving also growth in the other.”
Significantly, the actual value of M2M data can vary greatly by the depth of delivered analysis, ABI explains in this morning’s report.
“At the moment,” the research firm summarizes, “most enterprises with relevant data assets are trying to migrate from descriptive and diagnostic insights to predictive analytics. Mastering the predictive phase could then ultimately lead to the final, prescriptive phase of analytics.”