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October 11, 2011

Mobile connected devices will create $1.2 trillion revenue opportunity by 2020: GSMA

Number of mobile connected devices is expected to increase by 100% to 12 billion by 2020 

By CBR Staff Writer

A new researchh has revealed that the number of total mobile connected devices is expected to increase from approximately 9 billion today to more than 24 billion in 2020.

In addition, the study found that mobile connected devices will grow 100% from over six billion today to 12 billion in 2020.

The GSM Association (GSMA) represents the interests of mobile operators worldwide. Spanning 219 countries, the GSMA unites nearly 800 of the world’s mobile operators, as well as more than 200 companies in the broader mobile ecosystem, including handset makers, software companies, equipment providers, Internet companies, and media and entertainment organisations.

The GSMA with the support of AT&T, Deutsche Bank, KT, Telenor Connexion and Vodafone, and in partnership with Machina Research, has released research that outlines the market opportunity and revenue potential for connected devices.

The study found that the explosive growth of mobile conected devices will support an addressable revenue opportunity for mobile operators of nearly $1.2 trillion by 2020, a sevenfold increase from expected revenues in 2011.

GSMA chief marketing officer Michael O’Hara said that the world is entering the next phase in the development of the mobile industry, one "where we will see mobile connect everything in our lives."

O’Hara continued, "In this new Connected Life, mobile will transform society and will have a profound effect on the way we interact not only with each other, but also with our surroundings. However, capitalising on this enormous opportunity requires collaboration across the entire ecosystem to demonstrate how mobile technology in everything from tablet PCs to new healthcare devices can enhance people’s personal and business lives."

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The study said that mobile operators can benefit from the revenue opportunity by addressing key areas of the value chain such as service provision and system integration, as well as collaborating more closely with vertical industry sectors to provide compelling new services to their customers.

The sectors that will benefit from this collaboration include the consumer electronics industry, which could generate direct revenues of $445bn; the automotive sector, which could generate $202bn in revenues; the health sector, which could see growth of $69bn; and the utilities sector, which could see an additional $36bn in revenue by 2020, said the study.

AT&T Emerging Devices president Glenn Lurie said, "There is incredible potential for wireless innovation across so many verticals, from healthcare to automotive to consumer electronics."

Vodafone Group Head of M2M Erik Brenneis said, "Devices with M2M capabilities are able to give customers a much richer experience than those without. These figures show the enormous potential of M2M services which become even more attractive when delivered wirelessly, such as personal navigation devices, which are able to show traffic jams in near real time."

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