Cellular M2M Value-Added Services Market
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The global cellular M2M value-added services market was valued at USD 5.6 billion in 2024 and is projected to grow at a CAGR of 16.2% between 2025 and 2034. The growth in the IoT technologies space will boost the sales in the market.
A report by Global Market Insights noted an accelerating compound growth at eight percent for the sector in the year to come. In August 2024 Deutsche Telekom entered the Bridge Alliance, a partnership of 35 mobile communications companies based in Asia Pacific, Middle East, Africa and Europe, and so greatly propelled its global IoT business. Deutsche Telekom has set itself the goal to improve its worldwide IoT connectivity services by joining the Bridge Alliance. This enhances flexibility in addressing customer needs in different territories and thus enables easier entry into IoT markets for businesses in the Asia Pacific region.
This also shows an IoT surge that coincides with the growth of connected devices and the desire of users to have these devices interact seamlessly. Usage of IoT solutions in healthcare, automotive, agriculture, manufacturing, and smart cities is increasing the need for dependable telecoms services. Critical communication enabling these devices to connect with central systems, platforms and cloud services, is provided by Cellular M2M (Machine-to-Machine) networks,
Report Attribute | Details |
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Base Year: | 2024 |
Cellular M2M Value-Added Services Market size in 2024: | USD 5.6 billion |
Forecast Period: | 2025 to 2034 |
Forecast Period 2023 - 2032 CAGR: | 16.2 |
2023 Value Projection: | USD 24.9 billion |
Historical Data for: | 2021 – 2024 |
No of Pages: | 180 |
Tables, Charts & Figures: | 200 |
Segments Covered: | Service, Deployment Mode, Technology, End use |
Growth Drivers: |
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Pitfalls Challenges: |
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The emergence of faster and more reliable networks is critical for the IoT ecosystem. In addition, the expansion of 5G networks will aid in the growth of cellular M2M value-added services market. As of Q1 2025, total globally circulation has reached nearly 2 billion this number is projected to rise due to improved 5g coverage. In industrial sectors such as health care, manufacturing, automotive, and smart cities, 5g technology is a key enabler of intricate and data demanding applications because of its wide range of features, including reduced latency, higher bandwidth, and low latency. With the rise of cellular-based IoT devices, remote device management, data analytics, real-time monitoring, and network optimization have become essential for maximizing the potential of such devices making those network features in high demand.
A shift is occurring whereby companies prefer to utilize edge devices for data processing rather than rely on a cloud based environment. Desirable response times, quicker informed decision making and robust systems are some of the reasons that have motivated this shift. This also explains the growing need for M2M value added services as IoT devices become increasingly data intensive and require real time processing. In an attempt to cut costs associated with cloud consumption, these services have been optimized and modified, including remote device management, data analysis, and distributed network control alongside IoT applications to boost their performance.
There is an increasing demand for quick data processing and analysis as IoT devices generate greater amounts of data. Multiple industries are leveraging AI and ML in order to automate processes as well as gain predictive insights. Utilizing AI-powered services enables businesses across various sectors predicting future trends based on previously collected data, allowing them to make informed decisions without additional input. Over time this can help improve efficiency and customer satisfaction while reducing downtime.
A significant hurdle for businesses trying to implement cellular M2M value-added services are the high initial costs required to install and manage the software and hardware. Companies need to invest into purchasing and integrating M2M devices with cellular networks to begin working on their IoT systems to further reap business benefits in the long run. Unfortunately, this prevents many companies, especially those unsure of the return on investment from their IoT systems, from proceeding with development.
Small and medium sized companies and enterprises that operate in industries that are cost-sensitive are specially impacted as the enhanced infrastructure that is required for cell M2M value-added services entails more computing resources and advanced software resulting in an increase in overall costs.
Based on service, the cellular M2M value-added services market is segmented as security services, device management, data analytics, application enablement, and others. In 2024, the device management segment held a market share of over 28% and is expected to exceed USD 7 billion by 2034.
Based on deployment mode, the cellular M2M value-added services market is divided into cloud-based, on-premises, and hybrid.
The cloud-based segment held around 49% of the market share in 2024. Cloud platforms present the largest share. They are quite good at delivering inexpensive, agile and expandable solutions required to handle the massive data streams created by M2M devices. In line with the rise in the number of connected devices, which according to Statista grew about 22 percent from 2022 to 2023, more and more businesses are turning to the cloud to manage this onslaught of data without the need for large amounts of costly on-premises equipment.
They allow for effortless collection, fast analysis, and effortless access to analytic tools. This capacity enables companies to make better use of their data from devices. Also, avoiding storage or processing constraints implies that businesses using cloud services can expand their operations. This kind of flexibility is ideal for many logistics companies, as well as the healthcare and smart city advancements, where demand can be variable or even increasing.
North America dominated the global cellular M2M value-added services market with a major share of over 33% in 2024 and U.S. holds a significant share of this region.
The growth of Europe cellular M2M value-added services market is largely driven by the rapid expansion of 5G networks.
Asia Pacific cellular M2M value-added services market is expected to observe significant growth during the forecast period.
AT&T dominates in the cellular M2M market space because of its vast expanse and 5G leadership. The firm provides IoT and M2M solutions across multiple approaches. With them, high quality and high-speed connectivity needed for extensive M2M applications is provided that enables real-time device-to-device communication.
Vodafone is in a strong position with respect of the cellular M2M value-added services market due to its geographical presence and skills in the IoT connectivity. The firm’s large footprint across various geographical regions supports well developed M2M services for fleet management, asset management and smart city applications. Their wide spectrum of IoT platforms and cloud services enables companies to better control connected devices and process data, thereby optimizing their operations.
To increase their share in the cellular M2M VAS market, Verizon is working on enhancing its IoT tools and focusing on the build out of its 5G infrastructure. It has invested substantially in the establishment of an IoT platform that provides businesses with device management, cloud hosting and analytics services. The development of its 5G solution allows the delivery of M2M communication services that are faster and more reliable, supporting healthcare, automotive and smart city applications.
KDDI Corporation, through its massive investments in IoT infrastructure as well as its core global partnerships, has further deepened its footprint into the cellular M2M value-added services market. The company is set to broaden its IoT platform and enable organizations to control, oversee, and evaluate connected devices in real-time. Moreover, KDDI is incentivizing the application of 5G in M2M macro applications within smart cities, the automotive sector, and the logistics industry.
International players dominate these markets through acquisitions and a range of innovative M2M offerings such as secured connectivity services, realtime monitoring tools, and analytics software. Their sustained efforts towards building M2M ecosystems through IoT integration as well as the growth of emerging economies has allowed these companies to penetrate and consolidate in many of the faster developing regions.
Regional vendors remain active by leveraging their knowledge of local market conditions and providing cost-effective and customized products and services to SMEs and other local markets. The case of US market is particularly buttressed by the fact that service delivery is expected to push up demand for additional business value added features like maintenance, asset management and cross-regional competition.
Additionally, the cellular M2M value-added services market is likely to undergo major structural changes, notably substantial merger and acquisition activities, as local firms attempt to develop technologically advanced products and services to better position themselves within the marketplace. Such combining of firms is also expected to alter the global competition for cellular machine to machine value added services and the adoption of connected products across the globe.
Major players operating in the cellular M2M value-added services industry are:
Market, By Service
Market, By Deployment Mode
Market, By Technology
Market, By End Use
The above information is provided for the following regions and countries:
The key players in the industry include AT&T, Aeris Communications, Amdocs, Digi International Inc, eDevice, Intel, KDDI Corporation, KORE Wireless, Orange SA, and Oxio.
North America dominated the global market with a major share of over 33% in 2024, driven by advanced technological infrastructure and high adoption rates in the U.S.
The device management segment held a cellular M2M value-added services market share of over 28% in 2024 and is expected to exceed USD 7 billion by 2034 due to its critical role in managing and maintaining connected devices.
The global market size of cellular M2M value-added services was valued at USD 5.6 billion in 2024 and is projected to grow at a 16.2% CAGR between 2025 and 2034, driven by the growth in IoT technologies.