THE Global System for Mobile telecommunications Association (GSMA), with the support of AT&T, Deutsche Bank, KT, Telenor Connexion and Vodafone, and in partnership with Machina Research has released a new research that outlines the market opportunity and revenue potential for connected devices.The research shows that the number of total connected devices is expected to increase from approximately nine billion today to more than 24 billion in 2020, and within that, mobile connected devices will grow 100 per cent from more than six billion today to 12 billion in 2020. This explosive growth will support an addressable revenue opportunity for mobile operators of nearly $1.2 trillion by 2020, a sevenfold increase from expected revenues in 2011, and will also provide significant growth potential for the entire ecosystem.According to the Chief Marketing Officer, GSMA, Michael O' Hara said: 'We are entering the next phase in the development of the mobile industry, one where we will see mobile connect everything in our lives.'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.'The research revealed that, mobile operators could benefit from this important 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 $445 billion; the automotive sector, which could generate $202 billion in revenues; the health sector, which could see growth of $69 billion; and the utilities sector, which could see an additional $36 billion in revenue by 2020.The Machina research identified a significant addressable market opportunity for mobile operators, although the revenue that can actually be realised will depend on individual business strategies. It noted that, mobile operators are uniquely placed to work in partnership with other industries to enable this opportunity because they provide ubiquitous network connectivity; deliver proven customer care, billing and distribution capabilities; and represent a trusted brand for consumers and businesses.Director at Machina Research, Jim Morrish, commented, 'We are moving into a new era in connectivity where we will see the proliferation of billions of connected devices in the world. Most of that growth is coming from machine-to-machine: a new market for communications service providers, and with new dynamics. The way that mobile operators, device vendors, service providers and others in the value chain-react to this opportunity will have important implications for their future success. Right now, the mobile industry has a clear opportunity to play a central role in the Connected Life.
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