M2M Market in Japan: Key Research Findings 2017
Research Outline
- Research period: From December 2016 to March 2017
- Research targets: Domestic and overseas IT businesses, SIers, telecommunication businesses (carriers,) MVNO (Mobile Virtual Network Operators,) platform vendors, and user companies
- Research methodologies: Face-to-face interviews with the expert researchers, surveys via email/telephone, and literature research
What is M2M?
M2M (Machine to Machine) in this research indicates a mechanism of direct communication between machines and/or devices embedded with communication modules compliant to telecommunications standards of mobile phones/PHS, without any intervention by humans.
What is the M2M Market?
The M2M market size in this research is calculated based on the expenses necessary to attain M2M communications, including the fees for devices/modules, network usage, system/application construction, M2M/IoT platform usage, solutions of data analysis/analytics, operation and maintenance of systems, and etc.
Summary of Research Findings
- FY2016 Domestic M2M Market Projected to Attain 171.0 Billion Yen, 106.2% on Y-o-Y Basis
The domestic M2M (Machine to Machine) market in FY2015 has kept its stable growth to attain 161.0 billion yen, based on the sales of businesses. Just like the previous fiscal year, the market in FY2016 is expected to be driven by successful business expansion by leading M2M network enterprises and diversified services by MVNO, as well as recent wide acceptance of M2M utilized by mid-size user companies. The market size in FY2016, therefore, projected to attain 171.0 billion yen, 106.2% of the size of the previous fiscal year.
- While Energy Category Driving M2M Demands, M2M Also Progressively Accepted in Category of Surveillance of Facilities/Equipment
When looking at the accumulated number of domestic M2M lines as of end of FY2015 by category, the largest number of lines fell into the category of energy with 4.80 million lines, occupying 28.4 %, followed by the category of surveillance of facilities/equipment accounting for 22.5%, and the logistics/distribution accounting for 20.1%. Among the category of energy, the demand of smart meters/HEMS continues driving the market. With regard to M2M in the category of surveillance of facilities/equipment, remote monitoring at factories and of production machines together with M2M for maintenances have expanded within the past one or two years.
- Domestic M2M Market Projected to Attain 200.0 Billion Yen by FY2021
It is expected that energy applications continue to drive the domestic M2M market. In addition, expansion of M2M demands is expected in the category of surveillance of facilities/equipment represented by remote monitoring at factories and of production machines, as well as in the category of logistics and distribution with its payment update demand. Therefore, the market size in FY2021 is considered to achieve 200.0 billion yen, based on the sales of businesses.
- Figure 1: Forecast of Domestic M2M Market Size
- Figure 2: Accumulated Number of Domestic M2M Lines by Use (As of end of FY2015)
