Internet of Things (IoT) and Machine-to-Machine (M2M) communications refer to the interconnection of networks of physical objects embedded with the Internet infrastructure. With the spread of rising technological innovations, the need for faster connectivity and seamless transfer of data has resulted in the spread of IoT in the industry and regions.
The IoT and M2M have a capacity to transform each industry in which it is implemented, be it locally or globally. It helps companies to manage data on real-time basis. With the implementation of IoT, the expansion of storage capacity will be at lower cost, thus making information easily available to everyone. It will also enhance the decision-making capabilities by increasing the role of devices in communication. The strategic implementation of IoT and M2M will help the solution providers to create real differentiation in the level of competition and can create a powerful new business values.
The technological components used in IoT and M2M include Radio Frequency Identification (RFID), sensor nodes, gateways, cloud management, Near-Field Communication (NFC), Complex Events Processing (CEP), Supervisory Control and Data Acquisition (SCADA), Zigbee, and many more which seamlessly transfer data in the allocated bandwidth.
The global IoT and M2M market is expected to grow from $107.23 billion in 2014 to $350.96 billion by 2019, with an expected Compound Annual Growth Rate (CAGR) of 26.8%. Such technological innovations have often been fueled by governments which have in turn driven industrial growth and helped to raise living standards. Various macro-economic indicators such as: research and development expenditure, intellectual property right charges, high-technology exports, royalty and license fees, and patents and trademarks affect this market. The implementation of IoT and M2M technological components help in creating an ecosystem which ensures implementation, migration, and managing the connectivity of devices in an efficient and secured manner.
Major benefits of using IoT and M2M for the solutions providers are listed below:
- Low infrastructure Cost: The cost for setting up IoT infrastructure is comparatively low as its components are relatively affordable to the organizations. So, many vendors have implemented cloud-based solutions which have resulted in expanding the overall capabilities of the organization and enhancing the quality of decisions made by them.
- Safety and Security: The implementation of sensors and other monitoring equipment has reduced the threats and insured safety at workplace. Seamless connectivity has increased the response timing and can handle the situation faster.
- Components Becoming Powerful: With the implementation of IoT components, the entire ecosystem can be controlled by sensors and cloud-based solutions, which helps in seamless transfer and real-time monitoring of data.
The major players in the IoT and M2M market are Alcatel-Lucent, AT&T, Cisco, Huawei, IBM, Google, Intel, and many more. They are leveraging on emerging markets of IoT and M2M as it has immense opportunity for solution providers to expand their business, creating new business opportunities, and real competitive edge in the market.
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