Cisco says M2M connections supporting IoT will reach 13.7 billion by 2021
These connections will represent more than half of global devices and connections by that year.
M2M connections that support Internet of Things (IoT) applications are expected to be more than half of the total 27.1 billion devices and connections by 2021, according to a recent study by Cisco.
According to the Cisco Visual Networking Index, M2M connections supporting IoT applications will reach 13.7 billion by 2021 compared to 5.8 billion in 2016.
The study revealed that these connections will account for 5% of global IP traffic by 2021. IoT innovations in connected home, connected healthcare, smart cars/transportation and a host of other next-generation M2M services are driving this incremental growth, the networking company said.
With the rise of connected applications such as health monitors, medicine dispensers, and first-responder connectivity, the health vertical will be fastest-growing industry segment, with 30% CAGR during the period. The connected car and connected cities applications will have the second-fastest growth (29% CAGRs respectively).
In North America, M2M modules will account for 65% (3.1 billion) of all networked devices in 2021, compared to 47% (1.3 billion) in 2016, growing at a CAGR of 19.1%, according to the study.
In North America, M2M modules accounted for 1.8% of IP traffic last year, and will be 4.7% of IP traffic in 2021.
In Western Europe, M2M modules will account for 63% (2.4 billion) of all networked devices in 2021, compared to 45% (991.5 million) in 2016.
In Asia Pacific region, M2M modules will account for 47% (5.8 billion) of all networked devices in 2021, compared to 32% (2.5 billion) in 2016, according to Cisco.
Cisco’s study also showed that virtual reality (VR) and augmented reality (AR) are also gaining traction. By 2021, VR/AR traffic will increase 20-fold and represent 1% of global entertainment traffic.