Amongst the vertical markets and sectors of M2M are the automotive industry, the smart (connected) home market, intelligent buildings, smart cities and public transport, healthcare (mHealth), consumer electronics, the retail industry, manufacturing & supply chain (smart factory), utilities & energy and security applications. According to projections by Ovum healthcare, manufacturing and energy & utilities will be the most important verticals with each of those verticals forecast to generate revenues in excess of seven billion U.S. dollars by 2018.
The technologies used for M2M applications to ensure device connectivity are cellular (2G, 3G, 4G and LTE), wide area fixed, short range, MAN, short range and satellite connections. The total number of M2M connections is forecast to more than triple from around 100 million in 2012 to more than 350 million connections in 2018, at a CAGR of 22.6 percent. Data traffic from M2M communication was at more than 20 thousand terabytes per month in 2013 and is expected to grow to more than 900 terabytes per month by 2018.