In 2022, consumer-grade vehicle connectivity is expected to remain the largest segment within the M2M (Machine-to-Machine) market. According to a recent Juniper Research report, the total number of cellular M2M connections is projected to reach 1.3 billion by that year—an impressive 220% increase from approximately 400 million in 2017. This rapid growth reflects the increasing reliance on connected devices across various industries.
A new report titled "M2M: Critical Vertical Technology Analysis and Forecasting (2018–2022)" highlights that emerging cellular networks—such as NB-IoT, LTE-M, and 5G—are set to grow together, collectively accounting for nearly 10% of all cellular M2M connections by 2022. As network operators race to provide foundational connectivity, the future of this space will be shaped by innovative use cases and applications.
One key development driving this change is edge computing, which offers essential networking capabilities to deliver real-time services. By decentralizing network functions and bringing them closer to the user, edge computing can significantly reduce latency and enhance processing speed. As noted by Sam Barker, the author of the report, this shift is crucial for supporting the demands of smart cities and other high-performance applications.
Juniper also identified the fastest-growing M2M sectors, with smart cities leading the way at a 66% CAGR, followed by agriculture (37% CAGR) and smart metering (24% CAGR). These trends underscore the growing importance of connectivity in everyday life and business operations.
Smart city development is particularly benefiting from low-power wide area network (LPWA) technologies, such as NB-IoT and LTE-M. By 2022, more than 25% of cellular smart city devices are expected to operate on these networks. The combination of LPWA and long battery life makes these technologies ideal for monitoring urban infrastructure, including transportation systems and public energy grids.
Additionally, 5G technology plays a critical role in managing the massive data traffic generated by smart cities. In 2022, services like traffic information and citizen gateways are expected to generate over 160 PB of data, while the Internet of Vehicles will produce more than 7,000 PB. To handle this surge, the report emphasizes that transforming network architecture will be key to improving the performance and reliability of smart city services.
Finally, the Juniper white paper "M2M – 3 Fastest Growing Fields" predicts that consumer car networking will continue to dominate the M2M market. Although current in-vehicle M2M services have largely been driven by entertainment and telematics, the future will see security-focused solutions like V2X (Vehicle-to-Everything) and DSRC (Dedicated Short Range Communications) becoming major drivers of adoption.
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