Chinese M2M to grow at a CAGR of 26.2% by 2019

Research firm Technavio has predicted that the machine-to-machine market in China will grow at a CAGR of 26.2% from 2014 to 2019.

Source: Technavio.

The firm said that M2M penetration rates in China stand at 29%, one of the highest in the world, due to the growing population and government initiatives to support regional vendors, which have stimulated innovation.

“Currently, mobile networks are expanding; 3G and 4G networks allow service providers to offer high bandwidth to their customers,” says Faisal Ghaus, Vice President of Technavio.

“This enhances the quality of Internet of Things (IoT) services and speeds up data transmission. With expansions in mobile networks, the number of M2M users will also increase.”

Other market drivers, Technavio said, include more connected devices, the development of smart cities, and demand for mobile network coverage. The company expects to see M2M appear in telematics over the forecast period.

Key vendors mentioned in the M2M Market in China 2015-2019 report include AT&T, China Mobile Communications, China Telecom Corportaion, and Deutsche Telekom.