A new report from the GSM Association – a group representing the interests of mobile operators worldwide – shows there is growing revenue potential for connected devices. That’s because the number of these devices is expected to grow from 9 billion today to 24 billion in 2020. And within that group, mobile connected devices alone are expected to double, from 6 billion to 12 billion.
Connected devices include any number of things that can connect to a network, from tablets and smartphones to femtocells, routers and remote sensors.
“We are entering the next phase in the development of the mobile industry, one where we will see mobile connect everything in our lives," said Michael O’Hara, chief marketing officer, GSMA. “In this new Connected Life, mobile will transform society and will have a profound effect on the way we interact not only with each other, but also with our surroundings. However, capitalizing on this enormous opportunity requires collaboration across the entire ecosystem to demonstrate how mobile technology in everything from tablet PCs to new healthcare devices can enhance people’s personal and business lives."
This growth can certainly be described as explosive, with a revenue opportunity of $1.2 trillion by 2020, according to the GSMA.
The organization says mobile operators should jump at this by addressing key areas in the value chain, like service provision and system integration. Collaborating more closely with vertical markets will also be key, giving customers access to compelling new services. The consumer electronics industry, the report says, could generate direct revenues of $445 billion. The automative sector, healthcare and utilities could also see significant revenue growth if they play their cards right.
The report was done with the support of AT&T, Deutsche Bank, KT, Telenor Connexion and Vodafone, in partnership with Machina Research.
Machina Research says individual business strategies will be key to realizing the potential of connected devices. Mobile operators are uniquely positioned to work in partnership with other industries to enable this opportunity because they provide ubiquitous network connectivity; deliver proven customer care, billing and distribution capabilities; and represent a trusted brand for consumers and businesses.
“We are moving into a new era in connectivity where we will see the proliferation of billions of connected devices in the world," said Jim Morrish, director at Machina Research. “Most of that growth is coming from machine-to-machine: a new market for communications service providers, and with new dynamics. The way that mobile operators, device vendors, service providers and others in the value chain react to this opportunity will have important implications for their future success. Right now, the mobile industry has a clear opportunity to play a central role in the Connected Life."
