Machine to Machine (M2M) connections across South Africa’s automotive, retail, finance and utilities sectors are forecast to hit between six and seven million by 2018.

This is according to research firm Frost & Sullivan, which forecasts a compound annual growth rate (CAGR) of 13% from 2011 to 2018 for M2M in these sectors.

M2M refers to technologies that allow both wireless and wired systems to communicate with other devices of the same type.

The firm also noted that the utilities sector is expected to have the highest growth regarding M2M.

“The ability of M2M solutions to automate processes, as well as boost visibility and control assets, enables mobile operators to improve profit margins by generating revenues from this segment,” a statement reads.

Frost & Sullivan further explains that the projected growth rate of M2M solutions in these sectors may be attributed to desires in these sectors to improve operational efficiency, optimising resources, and enhancing customer experience.

Lehlohonolo Mokenela, Frost & Sullivan information and communication technologies research analyst said, “Agriculture, healthcare, security, and process-intensive sectors, like mining and manufacturing are expected to be some of the main adopters of M2M solutions in their operations.”

Device manufacturers in the country are encouraged by the sturdy adoption rates and therefore have developed new M2M applications for the automotive, retail and finance verticals, according to Frost & Sullivan.

Mokenela added, “Globally, operators have set-up spin-off companies to focus on providing M2M support, a trend that some of the larger local operators, Vodacom and MTN, are looking to follow.”