In Poland, there are already 3.3 million Machine to Machine SIM cards operating in mobile operator networks. Most of them, i.e. 40%, are used by Orange Polska. M2M communication is used mainly in payment terminals, smart cars or electricity and water meters. M2M communication is the beginning of digital business transformation. The next stage is automatic data analysis within the scope of Internet of Things (IoT) solutions.
Prospective market for M2M
M2M (Machine to Machine) communication is a technology that allows automatic exchange in networks between autonomous devices. M2M devices allow communication and data exchange over a mobile network without or with little human intervention. This technology is used primarily in telemetry systems and systems for wireless monitoring and control of devices.
The M2M market in Poland is primarily a developing and prospective market. In terms of quantity, it is characterized by a clear upward trend – annual dynamics of changes is double-digit. At the end of 2018, the base of SIM cards used for M2M communication in Polish operators’ networks grew to 3.3 million.
Communication between devices is only the beginning of the digital transformation of business. The next steps are automatic data analysis, data processing and reporting in an accessible way. This is made possible by more advanced solutions in the field of Internet of Things (IoT).
M2M with the support of electronic reality
Currently, the biggest interest in M2M technology is reported by the following industries: energy, gas and water production and distribution, automotive, industrial, financial, retail, transport/logistics, construction (intelligent buildings), automotive or security sector. Specific examples of applications include:
- payment terminals
- cars downloading traffic data from the internet, informing about car damage after an accident and calling for help
- electricity meters
- water meters
- city bicycles and electric scooters.
Orange as the leader
The leader in terms of the number of SIM cards in the M2M segment is Orange, with the market share oscillating around 40%. Polkomtel (CPS Group) and T-Mobile are ranked next. M2M services are relatively least present in P4.The Orange network includes 1.5 million M2M SIM cards. Most of them, i.e. one third, are in cars automatically notifying about an accident or collision. In the second place, the operator handles the most M2M cards in electricity meters. Orange also develops the latest technologies for communication between autonomous devices – LTE-M and 5G.Orange also provides more advanced solutions for the Internet of Things, in which data is not only transferred but also analysed, and the conclusions drawn from them allow to improve the efficiency of companies and the quality of life in cities. There are already dozens of such projects. These include intelligent city bike systems, which do not require docking stations, street lighting systems, solutions allowing optimization of energy consumption in enterprises, as well as solutions supporting agriculture.
Value of the market
Revenues generated by the M2M segment for telecommunications operators show lower growth dynamics. It results directly from a systematic decrease in average revenues per SIM card. PMR believes, however, that the decline in prices on the M2M market is saturating – in the last two years the average revenue from M2M SIM cards has stabilised at the level of PLN 4 (net price). PMR estimates that in 2018 the value of the M2M communications market grew by 7% to over PLN 140m.