Big Data and Analytics in M2M is expected to rise 53.1% over the following five years and reach $14.3bn in 2018, according to a new forecast by ABI Research.
The latest forecast also involves revenue segmentation for the five components that collectively allow implementing analytics in M2M services including data integration, data storage, core analytics, data presentation, and associated professional services.
ABI Research senior analyst Aapo Markkanen said that analytics will play a critical role in the evolution of M2M, serving as the foundation for an increasing number of M2M business cases.
"In essence, such analytics-driven business cases will be about making previously opaque physical assets part of the digital data universe," Markkanen said.
"M2M has thus a very synergetic relationship with the wider big data space, with growth in one industry driving also growth in the other."
The report also noted that the definite value of M2M data can significantly vary with the deepness of delivered analysis.
Currently, majority of enterprises with related data assets are aiming to shift from vivid and diagnostic insights to predictive analytics.
ABI Research practise director Dan Shey said that predictive analytics is becoming one of the hottest areas in the M2M value chain.
"Of today's analytics establishment, SAP and IBM have woken up to the opportunity reasonably early," Shey said.
"Of the younger companies, Splunk is an example of a firm that could develop into a true Internet of Things powerhouse if it plays its cards right.
"Given the far-reaching possibilities of machine learning, we are also expecting major impact from players that successfully apply it to industrial settings.
"Mtell appears to be making strides in this field, and going forward also Grok will be one to watch."