Presentation on development in the market for machine-to-machine (M2M) and Internet of Things (IoT) technologies by Godfrey Chua of Machina Research. Presented at Security of Things Forum, Sept. 10 2015.

1. M2M and IoT Markets
Godfrey Chua, Principal Analyst
Machina Research
Security of Things Forum
Cambridge, MA
September 2015

2. M2M connections will grow from 5 billion
in 2014 to 27 billion in 2024
• Machina Research defines
M2M as “Connections to
remote sensing, monitoring
and actuating devices,
together with associated
aggregation devices”
• Based on this definition
there were 5 billion M2M
connections in 2014 and
there will be 27 billion in
2024, a CAGR of 18%
Machina Research 2
Global machine-to-machine connections
2014-24
Source: Machina Research 2015
Note: in this edition our Global M2M report, as in the previous
editions, we have included in-building network infrastructure
within our definition of M2M. As such, devices such as residential
modems/ routers are included.

3. Short-range technologies will dominate
M2M
• Over two-thirds of
connections in 2024
will be short range (e.g.
in-building PLC, WiFi,
Zigbee, Z-Wave)
• 14% of connections in
2024 will be LPWA,
driven by the simplicity
of deployment
Machina Research 3
Global M2M connections 2014-2024 by
technology
Source: Machina Research 2015

4. Wide area M2M connections will be
dominated by LPWA technologies
• By 2024, almost half of wide
area M2M connections will be
supported by LPWA
technologies
• LPWA technologies are
attractive due to:
o ease of deployment
o homogeneity of solution
o low price and long battery life
• Cellular connections account
for almost one-third because
as well as the first two
benefits they also deliver high
capacity and mobility
Machina Research 4
Wide area M2M connections by technology,
2014-24
Source: Machina Research 2015

5. M2M accounted for 4% of cellular
connections in 2014, rising to 18% in 2024
• At the end of 2014 there
were over 250 million
cellular M2M connections
• By 2024 M2M’s share of
cellular connections will
have increased to nearly 1
in 5
• M2M accounts for nearly
half of the growth in cellular
connections from 2014-24
Machina Research 5
Machine-to-machine’s share of cellular
connected devices, 2014-2024
Source: Machina Research 2015
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
-
3
6
9
12
15
Handset/Tablet PC/Laptop
M2M % M2M

6. Connected Car will account for 52% of
cellular connections in 2024
• The top application groups
for cellular connections will
be:
o Connected Car
o Connected Living and
Working
• The Connected Car is top
because it needs features
only cellular can provide:
o Comprehensive coverage
o High-speed mobility
o High bandwidth
Machina Research 6
Machine-to-machine cellular connections by
biggest applications, 2024
Source: Machina Research 2015

7. M2M and IoT solutions are complex and
made up of several components
Devices
Networks
Platforms
Internet of
Things
Connected things,
products, systems,
applications, etc.
Security
Storage
ApplicationsData Processing
Machina Research 7

8. M2M and IoT SECURITY must encompass
all components
Devices
Networks
Platforms
Internet of
Things
Connected things,
products, systems,
applications, etc.
Security
Storage
ApplicationsData Processing
Machina Research 8

9. Security is a top of mind concern
Machina Research 9
Source: Xively and Machina Research Survey 2015

10. Some key elements in security
• Data security and privacy
• Lightweight device controllers
• Firmware security updates
• Pervasiveness
• Passwords (and the human element)
Machina Research 10

11. Key considerations in security
• Must be built into the business case
o Align security efforts with business value
• Partner collaboration is essential
o Overall solution security is only as strong as the
weakest link
• Contingency planning
o Is 100% security truly possible?
Machina Research 11

12. Machina Research 12
Thank you!
Godfrey Chua
Email: godfrey.chua@machinaresearch.com
Twitter: gsc_IoT