Connected devices build $1.2tn revenue opportunity by 2020

The number of mobile connected devices in the world is set to grow 100 per cent from more than six billion today to 12 billion in 2020, according to research unveiled by industry association the GSMA.

This growth will create revenue opportunities for mobile operators of nearly $1.2tn by 2020, marking a sevenfold increase from expected revenues in 2011. It will also provide significant growth potential for the entire ecosystem, said the body.

“We are entering the next phase in the development of the mobile industry, one where we will see mobile connect everything in our lives,” said Michael O’Hara, chief marketing officer, GSMA.

“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 was undertaken for GSMA, with the support of AT&T, Deutsche Bank, KT, Telenor Connexion and Vodafone, and in partnership with Machina Research.

Machina Research said that the opportunities for mobile operators will depend on individual business strategies. 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, the firm said.

“Most of the growth is coming from machine-to-machine: a new market for communications service providers, and with new dynamics,” said Jim Morrish, director at Machina Research.

“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.”