Date: 25/10/2012

M2M Software Platform revenues to reach $3.85 billion by 2017, says ABI Research

ABI Research has projected that revenues from two platforms currently dominating this market, Application Enablement Platforms (AEPs) and Connected Device Platforms (CDPs), is to grow to $3.85 billion by 2017.

AEPs try to do what mobile application development platforms do for smartphone applications – reduce M2M application development time and extend application reach. AEP application development functionality seeks to abstract away from the developer those aspects of the application that are common across many M2M applications such as data normalization and a data rules engine. CDPs automate the provisioning and management of M2M module connectivity, which is vital in this low ARPU market. CDPs also offer connectivity monitoring, real-time charging and policy control, and can integrate with existing BSS and OSS platforms.

Dan Shey, M2M practice director, comments, “Custom development and islands of functionality characterize the current M2M market. AEP and CDP platforms intend to provide more “horizontal” capabilities that will expand the supplier base, end-user markets and ultimately facilitate a more connected planet.”

Craig Foster, principal analyst, M2M, added, “Operators will play important roles in driving the market moving forward. Operators, particularly in North America and Western Europe, have a strong position in the CDP market, many with self-built CDP’s. They are also seeking to move into the AEP market as it is potentially a more lucrative portion of the M2M value chain. But operator growth in the M2M market also means building roaming alliances and partnerships with other operators for their international customers.”

Source: ABI
Author: Srinivasa Reddy N