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The machine-to-machine (M2M) wireless communications technology has been significantly driving mobile data revenues for wireless service providers.

In the U.S., the Department of Transportation is preparing regulatory proposals to make vehicle-to-vehicle communications compulsory to prevent crashes, reduce traffic congestion and to save fuel. We expect this new regulation to significantly boost the mobile M2M market.

A typical mobile M2M messaging system establishes a wireless communication link between a group of devices and a computer server or another device for transmitting data contained within those devices.

The M2M market provides the opportunity to mobile-enabled millions of devices, like cars, utility meters, vending machines and consumer electronics devices to get connected to a wireless network.

M2M is a rapidly growing market opportunity. According to a report by research firm IDATE, the global M2M communications market is expected to generate revenues over $53 billion, substantially up from $33 billion in 2013. Over the same time frame, the number of M2M module deployment is predicted to rise from 175 million to 470 million.

Earlier, research firm Ovum had forecasted that the global M2M communications market size will reach nearly $45 billion in 2018. Industry verticals like healthcare, manufacturing, energy and utilities will largely benefit from the progress.

Next-generation (4G) technology is also boosting the growth of the M2M segment as it provides exceptionally high speeds. Massive throughput and low latency period of LTE technology enable easy access for large-scale applications like fleet management, security, automotive, navigation, and video content.

In the U.S., all four national telecom operators, namely, AT&T Inc. (T - Analyst Report), Sprint Corp. (S - Analyst Report), Verizon Communications Inc. (VZ - Analyst Report) and T-Mobile US Inc. (TMUS - Snapshot Report) are expanding their M2M operations.

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