IoT/M2M Market in Japan: Key Research Findings 2019
Yano Research Institute (the President, Takashi Mizukoshi) surveyed on the domestic M2M market and has found out the market size, the trend by application category, the trend of market players and noteworthy technologies, and the future outlook.
The domestic M2M (Machine to Machine) market in FY2018 rose by 7.5% from the previous fiscal year to achieve 201.0 billion yen, based on the sales at the businesses. During the fiscal year, stable growth in the sales primarily of communication modules (LTE) at three leading carriers (i.e., NTT DOCOMO, KDDI, and SoftBank) and MVNO service providers, contributed in the market expansion, despite some degree of slump from double digit growth attained in the previous fiscal year.
As the demand for LTE (Long Term Evolution) saturated and that for MVNO (mobile virtual network operators) slowing down, the M2M market for FY2019 is likely to reduce the growth rate to 6.0% (an increase by 12 billion yen) to achieve 123.0 billion yen.
Possibility of Industrial 5G×IoT/M2M
By the middle of 2020s, the existing communication modules (4G/LTE), wired network, wireless LAN are likely to be replaced by 5G (the fifth generation wireless technology) for industrial purposes, used with IoT to enable M2M. In order to put 5G into practice, various field trials are in progress at telecommunication carriers allied with IT vendors, SIers, R&D institutions. Not a few of such cases have proceeded to problem extraction, verification, or even to Proof of Concept.
Industrial 5G for the time being contributes mostly in traffic infrastructure (for automobiles) and energy. In traffic infrastructure, 5G is indispensable technology to accomplish autonomous driving, but as autonomous driving also requires various other technologies to be progressed at the same time, implementing of autonomous driving to general vehicles and at public roads is considered to be in around 2030. Prior to that, utilizing 5G as a platform of V2V (vehicle to vehicle), V2I (vehicle to infrastructure), and V2P (vehicle to pedestrian) is expected to increase connectivity in traffic area, enabling advancement in the solutions for supporting safety driving and remote driving, and for achievement of a Smart city.
Although new demanders of M2M connection is expected to continue being explored especially in MVNO and its peripheral fields for FY2020 and beyond, there is a tendency of replacing the word “M2M” with IoT, as the boundary between M2M and IoT becoming vague as ever. It is possible for the word “M2M” to even disappear. In fact, at major IT vendors and telecommunication carriers, the offices and organizations with M2M used in their names have rapidly vanished during the past few years.
That said, however, there still are robust demands for M2M connection using the modules conforming to the mobile phone standards. Therefore, the M2M connection business is likely to maintain stable growth for the future, though the word “M2M” may not be used. The domestic M2M market size based on the sales at businesses is projected to attain 257.0 billion yen by FY2023.
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