An overview of the market
Recent technological advancements in low-power cellular connectivity have substantially contributed to the development of M2M.
In 2022, LTE-M and NB-IoT cellular communication technologies experienced increasing adoption, laying the groundwork for the gradual replacement of 2G and 3G technologies, which is expected to be complete by 2025 and 2026. The number of mobile technology users worldwide increased by 27% in 2022, reaching 2.7 billion by the end of the year. By 2027, this number is expected to increase by 15.4%, bringing the number of cellular-connected devices to 5.4 billion. [1]
How does Machine-to-Machine work?
Machine-to-Machine (M2M) is primarily based on the principle of telemetry. This bidirectional process involves collecting data by sensors, which are then transmitted to a centralized system for processing and analysis.
To do this, M2M technology consists of three main components:
- Sensors: they capture data to be sent to other devices or systems;
- Communication networks: they transfer data between different devices. These networks can be wired (Ethernet, fiber optic) or wireless (Wi-Fi, LTE, 5G);
- Data management platforms: they receive, analyze, and store information transmitted by sensors
The main applications of M2M
Machine-to-Machine has a significant impact on various applications, including:
- Elevator manufacturers: predictive maintenance, optimized asset management, improved reliability and safety, reduced number of interventions
- Automotive: eCall standard, connected and autonomous vehicles, geolocation, remote management, road safety, user experience
- Industry: automation of production chains, equipment monitoring, and energy management
- Healthcare: patient monitoring, medical device management and medication tracking
- Agriculture: smart crop management, automatic irrigation, and weather monitoring
- Logistics: real-time tracking of goods, route optimization, and inventory management
- Buildings: air quality and noise level control, reduction of energy consumption costs
- Transport and mobility: traffic light management, traffic jams reduction, use of shared bicycles and scooters
M2M and IoT: what are the differences?
M2M or Machine-to-Machine is a machine-to-machine communication technology that includes a cellular communication system (historical 2G/3G/4G networks).
It allows for the automatic transfer of field data, collected by connected objects (sensors), to remote servers securely and without human intervention.
These data captured by machines are then stored on dedicated databases, processed, and analyzed to make decisions that can, for example, materialize in an order sent to machines installed in the field.
IoT or Internet of Things, on the other hand, is a much broader concept than M2M.
IoT encompasses many more means of communication (Bluetooth, Wi-Fi, cellular, etc.) to enable data exchange with or without human intervention.
In summary, M2M is a specific machine-to-machine communication technology, while IoT is a broader approach aimed at connecting all types of objects regardless of the communication technology used.
[1] https://media.berginsight.com/2023/07/19222126/bi-globaliot8-ps.pdf