Machine-to-machine (M2M) Connections Market Size, Share & Industry Analysis, By Technology Type (Wired M2M and Wireless M2M), By Industry Vertical (Automotive & Transportation, Energy & Utilities, Manufacturing & Industrial, Healthcare, Retail & Financial Services, and Others), and Regional Forecast, 2025-2032

The global Machine-to-machine (M2M) connections market size was valued at USD 2.51 billion in 2024. The market is projected to grow from USD 2.79 billion in 2025 to USD 6.01 billion by 2032, exhibiting a CAGR of 11.63% during the forecast period.

Machine-to-Machine (M2M) connection is defined as a direct communication among devices with the use of wired or wireless networks without any human intervention. This enables a data exchange and automation across different industries including manufacturing, healthcare, energy, and transportation.

The market is growing steadily due to rising Internet of Things (IoT), advancements in 5G connectivity, and real-time data analytics. Moreover, the increase in industrial automation and smart device adoption further boosts the market growth.

There are numerous players operating in the market including Cisco Systems, Inc., Huawei Technologies Co., Ltd., Intel Corporation, Vodafone Group plc, Texas Instruments Incorporated, AT&T Inc., Deutsche Telekom AG, Sierra Wireless, Inc., Thales Group (via Gemalto) and others. These companies are continuously employing strategies such as strategic partnerships, investment in 5G infrastructure and IoT platforms.

MARKET DYNAMICS

Market Drivers

IoT Expansion and Digital Infrastructure Modernization Drives the Market Development

Ongoing expansion of IoT technology and modernization of digital infrastructure drives the overall machine-to-machine (M2M) connections market growth. Increase in demand for remote monitoring, automation and predictive maintenance is augmenting the M2M connections adoption across different sectors such as transport, manufacturing, utilities and healthcare.

Moreover, industrial IoT, smart city initiatives, and growing awareness about smart grids and connected vehicles tend to drive the large-scale rollouts. This growth is coupled with the decreasing module costs and scalable 5G networks that are enabling mass connection deployment.

Market Restraints

Low Margins and Security Complexity Costs Hampers the Market Growth

One of the major restraint challenging the market growth is lower profit margins and complexity in security costs. Growing fragmentation across different networks, devices and standards deters the overall market growth and interoperability. In addition, risks related to data security and privacy tends to occur owing to a billions of endpoints coming online. Decreasing hardware commoditization pressure operator profitability and ARPU and conventional costs of legacy 2G or 3G migration costs also slows the global market scalability.

Market Opportunities

Private Networks and Vertical-specific Solutions Offers Lucrative Growth Opportunities

Private 5G or LTE, sector-powered M2M platforms and edge AI tend to offer growth opportunity through industrial automation, healthcare and connected mobility. Emerging markets across Middle East, Asia Pacific and Latin America offers a scalable opportunity through logistics digitization and smart infrastructure. Moreover, energy efficient LPWAN technologies and ESG associated connectivity solutions with differ high-value providers.

MACHINE-TO-MACHINE CONNECTIONS MARKET TRENDS

Unified Connectivity and Edge Automation Has Emerged as a Prominent Market Trend

Unified connectivity and edge automation has been a prominent trend reshaping the overall market growth. M2M networks are transforming from a basic telemetry links to an intelligent multi-network landscape. Additionally, LPWAN and edge computing ensure a low power and faster data exchange with iSIM and eSIM simplifying the global device provision. These platforms tend to integrate hybrid connectivity such as satellite, cellular and wired as well as AI driven analytics for ongoing machine to machine communication across different industries.

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SEGMENTATION ANALYSIS

By Technology Type

Higher Scalability, Flexibility and Wide Coverage Boosts Wireless M2M Segment Growth

Based on technology type, the market is segmented into wired M2M and wireless M2M.

Among these, wireless M2M segment leads the machine-to-machine (M2M) connections market share with a value of USD 21.75 billion in 2024. The segment also held highest CAGR of 7.5% in 2024. This segmental growth is due to scalability, flexibility and a wide coverage, allowing seamless connectivity for remote and mobile assets across industries. Increasing adopting of LPWAN, 5G and satellite IoT technologies also accelerates wireless M2M segment expansion, thus driving its rapid connection growth as compared to wired alternatives.

By Industry Vertical

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Surging Adoption of Connected Vehicles Augments Automotive & Transportation Segment Growth

The market is divided into automotive & transportation, energy & utilities, manufacturing & industrial, healthcare, retail & financial services, and others, based on industry vertical.

Among these, the automotive & transportation segment dominated the market with a revenue share of USD 8.06 billion in 2024. This growth is driven by the surging adoption of connected vehicles, smart logistics systems and fleet telematics. Regulatory mandates for vehicle tracking, emission monitoring, and emergency assistance (eCall), with the growing integration of embedded SIM modules and 5G in automobiles, has expanded the connectivity demand across passenger and commercial vehicles.

On the other hand, the healthcare segment held highest CAGR of 8.5% in 2024. This growth is due to the expanding remote patient monitoring, connected medical devices, and healthcare.

MACHINE-TO-MACHINE CONNECTIONS MARKET REGIONAL OUTLOOK

Geographically the market is segmented into North America, Europe, Asia Pacific, South America and Middle East & Africa.

North America

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The North America region is growing substantially with an expected estimation of USD 0.40 billion in 2025. This market growth is due to the presence of giant industry players. In order to align with technological alterations, these companies are engaging in enlarging and bolstering their infrastructure. Additionally, advancements in technology across major economies including the U.S. also boosts the regional market growth. The U.S. leads the North American market with an expected revenue share of USD 5.33 billion in 2025.

Europe

The Europe region is growing with an expected share of USD 0.24 billion in 2025. This growth is due to growing cellular networks including 4G LTE and early deployment of 5G. This firm ecosystem of connections tends to offer a strong platform for M2M and IoT implementation across different industries. U.K., Germany, and France are some of the major contributors to the market growth with an expected revenue share of USD 0.11 billion, USD 0.10 billion, and USD 0.09 billion respectively by 2025.

Asia Pacific

Asia Pacific dominated the market with a revenue share of USD 8.66 billion in 2023 and USD 9.50 billion in 2024. The market is also expected to reach USD 10.42 billion in 2025. Asia Pacific accounts for the largest share due to widespread industrial automation, large connected vehicle fleets, and government-backed IoT initiatives in major economies such as China, Japan, and South Korea. The region is projected to record the fastest growth owing to rapid urbanization, expanding smart infrastructure, and accelerating M2M adoption across emerging markets like India and Southeast Asia. India and China are the major contributors for the market growth with an expected revenue share of USD 1.71 billion and USD 3.91 billion respectively, by 2025.

South America and Middle East & Africa

The markets of South America and Middle East & Africa are growing with an expected share of USD 2.20 billion and USD 2.92 billion respectively in 2025. This growth is driven by increasing smart city initiatives, growing adoption of IoT in energy and transportation section and surging telecom infrastructure. GCC countries are predicted to have a market share of USD 1.79 billion by 2025.

COMPETITIVE LANDSCAPE

Key Industry Players

Growing Focus of Key Players on Innovating New Technologies Leads to their Dominating Market Positions

The M2M industry consists of different players operating in the market, including Cisco Systems, Inc., Huawei Technologies Co., Ltd., Intel Corporation, Vodafone Group plc, Texas Instruments Incorporated, AT&T Inc., Deutsche Telekom AG, Sierra Wireless, Inc., Thales Group (via Gemalto) and others. These firms are rapidly adopting different key strategies such as mergers and collaborations, developing innovative technologies, and new product launches to strengthen their market position.

LIST OF KEY MACHINE-TO-MACHINE (M2M) CONNECTIONS COMPANIES PROFILED

• Cisco Systems, Inc. (U.S.)
• Huawei Technologies Co., Ltd. (China)
• Intel Corporation (U.S.)
• Vodafone Group plc (U.K.)
• Texas Instruments Incorporated (U.S.)
• AT&T Inc. (U.S.)
• Deutsche Telekom AG (Germany)
• Sierra Wireless, Inc. (Canada)
• Thales Group (via Gemalto) (France)
• Telefónica S.A. (Spain)
• Telit Cinterion (Telit) (U.S.)
• China Mobile Ltd. (China)
• U-blox Holding AG (Switzerland)
• ORBCOMM Inc. (Virginia)
• Sequans Communications (France)

KEY INDUSTRY DEVELOPMENTS

• In October 2025, D-Link Corporation announced the launch of its latest 4G/5G Machine-to-Machine (M2M) portfolio, designed to connect and manage distributed devices across smart buildings, transportation, telematics, and industrial automation environments.
• In October 2025, Pi Network to Launch PiUSD Stablecoin for AI and RWA Growth. PiUSD unlocks advanced automation in blockchain operations. It enables “seamless transactions between humans, AI agents, and autonomous machines.” The development could make Pi Network one of the first platforms to merge blockchain with artificial intelligence for daily applications.
• In July 2025, OXIO, a leading Telecom-as-a-Service (TaaS) platform, today announced it has surpassed 2 million activated lines on its wholesale network across North America, marking a key milestone in the company’s expansion. This achievement underscores OXIO’s momentum and the growing demand for TaaS as businesses and brands across diverse sectors, including retail, fintech, media and entertainment, machine-to-machine (M2M), and celebrity, look to build, launch, and scale custom connectivity offerings.
• In March 2025, Zain Group, a leading provider of innovative ICT and digital lifestyle services operating in eight markets across the Middle East and Africa, announced the introduction of its groundbreaking Global M2M Offering. This innovative solution is set to empower OEMs from across the globe to seamlessly integrate their devices into multiple regional markets through a single point of integration and contractual relationship.
• In December 2024, Iridium Transforms Satellite IoT with the Launch of Revolutionary Iridium Certus 9704 Module. The new module is supported by the Iridium Certus 9704 Development Kit, and is ideal for data, audio messages and image transfers, while positioning companies as more future ready in anticipation of Satellite AIoT.

REPORT COVERAGE

The global report provides a detailed analysis of the market and focuses on key aspects such as prominent companies, deployment modes, types, and end users of the product. Besides this, it offers insights into the M2M connections market trends and highlights key industry developments and market share analysis for key companies. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

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Report Scope & Segmentation