Berg Insight, a leading Machine-to-Machine (M2M) and Internet of Things (IoT) analyst firm recently published the fourth edition of their study “Retail M2M and IoT Applications”, offering insights into the status of cellular M2M in retail today.
This latest research report consists of first-hand observations into the adoption of wireless connectivity in vending, parking, ticketing, ATM, digital signage, and Point of Sale (PoS) terminal markets.
The key findings from the study include the following:
- The number of global cellular M2M connections in retail was 23.1 million in 2014
- Cellular M2M devices in retail have a forecasted CAGR of 13.9%, reaching 44.3M connections worldwide by 2019
- Shipments for cellular M2M devices in retail will increase at a 7.1% CAGR, from 9.4M units in 2014 to 13.2M by 2019
At the end of 2014, PoS terminals constituted the largest device segment and accounted for 90% of all cellular M2M connections, with the majority of market growth in this area being driven by increasing electronic payments in emerging markets.
In addition, the report also found that as multi-space parking meters were one of the first technologies in this vertical to embrace cellular M2M, it has achieved a penetration rate in excess of 50%. This rate is predicted to increase steadily throughout the foreseeable future, with the majority of new multi-space meter deployments requiring connectivity.
According to Berg Insight, the growth of cellular M2M technology in retail can be attributed to its use in new locations where fixed line connectivity is unavailable or impractical – powering business-critical applications such as PoS. By using cellular connectivity, retailers are able to rapidly deploy a secure, flexible and cost-effective networking solution, which boasts a “connect anywhere, anytime” capability – utilising existing 3G/4G networks that are already in place to provide primary connectivity.
Growth of cellular M2M connectivity has also been accelerated by the development of other key technologies which retailers today employ – such as connected customer services and the cloud. This has created a tipping point in the pressure on retailers’ connectivity – demanding a more flexible, scalable solution than fixed line can offer alone.
Westbase Technology is a leading distributor of cloud-managed 3G, 4G and LTE cellular networking solutions across the UK and Europe. We work with our partners to deliver innovative 3G/4G hybrid networking solutions to retailers, providing the flexibility and scalability required for their M2M and IoT applications. To find out more about how we can support retailer connectivity demands, take a look at our retail industry solution page.