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M2M Solutions in automotive, retail, finance and other verticals will grow in South Africa
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M2M Solutions in automotive, retail, finance and other verticals will grow in South Africa

M2M Solutions in automotive, retail, finance and other verticals will grow in South Africa

by evajoy.ati@hotmail.comAugust 2, 2014

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Global connectivity is not impossible to attain especially with continuous efforts to achieve a connected world through technological advancement and deployment of several M2M solutions. Connectivity between devices such as smartphones, consumer electronics, wearable devices, as well as machines, vehicles, medical equipments and monitors, and sensors, is undoubted getting simpler and easier. With the increased penetration of M2M applications to improve efficiency rate, resource optimization and customer engagement in various sectors, global connectivity is very feasible, even for less developed regions such as South Africa.

In the most recent market analysis from Frost & Sullivan, a global growth consulting firm, highlights that M2M technology is gaining a good standing in a growing number of enterprises across different sectors in South Africa. Verticals such as automotive, retail, finance, utilities, and vehicle fleet management are the currently flourishing markets for M2M solutions in South Africa. Companies who operate businesses for automotive, retail, finance, utilities, and vehicle fleet management are the major users of these solutions, while agriculture, security, health care and some process-intensive sectors such as mining and manufacturing industries are expected to become main adopter of M2M in their operations.

There enterprises are turning to smart solutions to improve operational efficiency, optimize their resources, as well as enhance engagement with their customers to improve overall customer experience. And in the same light, mobile operators see a growing opportunity for them to diversify their revenue and gain profit from M2M solutions’ ability to automate processes, increase visibility and manage assets. The report also noted that the vision is clearly moving towards a positive direction with increased market growth and availability of advanced networks that enabled device developers to create new machine-to-machine solutions for the booming vertical markets. Aside from this, mobile operators are in a good position to support the data demand from the growing number of connected M2M devices.

“Mobile operators are looking to engage in vertical consolidation to strengthen their presence along the value chain and expand revenue sources beyond basic connectivity and more towards content-rich enterprise applications,” Lehlohonolo Mokenela, research analyst at Frost & Sullivan, Information & Communication Technologies, said in a statement.

Nevertheless, it must be noted as well that while the infrastructure is already in place, the lack of standards and protocols for these M2M solutions, is limiting the development process, particularly in the healthcare sector. According to Frost & Sullivan, it will have an impact in the development of the market until providers build an ecosystem that will collaborate on developing more general standards.

“Managed connectivity is likely to remain a core value proposition of the mobile operators as they own the networks, however, the long-term decline in data prices will drive down Average Revenue per User M2M SIMs,” Lehlohonolo Mokenela, research analyst at Frost & Sullivan, Information & Communication Technologies, Mokenela added.

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About The Author
evajoy.ati@hotmail.com