Automotive industry pioneers M2M implementations - for now

July 11, 2013 // By Christoph Hammerschmidt
M2M - and its up-to-date brainchild, IoT, are increasingly gaining traction throughout the industry. A Vodafone study expects 2.1 billion connected devices by 2021. The automotive industry is pioneering the technology.

In a broad poll across ten countries in the Americas, Europe and Asia, Vodafone's M2M group found that the automotive industry is not only ahead in implementing M2M schemes, it also is the industry branch with the highest acceptance and the broadest base followers. The market researchers divided the readiness to implement M2M into five categories: Pioneers, Fast Followers, Embryonics, Rejectors and Laggards. In average, 12 % of the enterprises polled claimed to be "Pioneers". In the automotive industry the researchers found this percentage at 19%, the highest of all industry segments (see image). The least pioneers were found in the Consumer goods / Retail segment. At the other end of the spectrum, the market researchers did not identify any Rejectors in the automotive industry; the segment with the highest percentage of Rejectors was the Consumer Electronics Manufacturing branch (4% Recjectors).

Fig. 1: Industry adoption of M2M. Source: Vodafone. For better resolution click here .

One of reasons why in the automotive industry were found so many M2M proponents was the regulation situation in the European Union: The emergency call (e-call), a perfect M2M use case, will be mandatory in the near future.

Typically, industries expect some return by implementing M2M schemes. This however does not apply to the automotive industry - carmakers do not benefit from the e-call. With regard to ROI, Transport and Logistics as well as Energy and Utilities see the best results.

Other findings of the study are: Costs associated to M2M implementation will fall; smaller organisations will catch up and race ahead, and industry adoption will change: Manufacturing and consumer electronics have the highest potential to benefit from M2M solutions.