IoT and M2M: Network your company with the future

Communication between machines and devices without human intervention: IoT (Internet of Things) and M2M (Machine to Machine) make this possible. Both terms describe concepts for networking and automation. But despite their close relationship, IoT and M2M differ significantly in terms of scope, flexibility and technological depth.

• M2M describes direct, point-to-point communication between two or more machines. Devices exchange data automatically, often via mobile networks or wired connections. The focus is on a clearly defined application. For example, vending machines can independently notify the warehouse when products are running low, or an industrial machine can signal when maintenance is needed.

• IoT goes beyond classic M2M communication and refers to the networking of machines, sensors and systems via the internet, often using cloud infrastructure, such as IoT Cloud. The focus here is not just on data exchange but also on the analysis, control and real-time processing of the data. Typical IoT applications include smart devices controllable via IoT platforms or sensors in production facilities that continuously monitor condition and efficiency.

The aim of both approaches is to make information available in real time and to make processes more efficient, secure and dynamic. But how exactly do IoT and M2M work? In the case of M2M, for example, a sensor measures a specific value – such as temperature, pressure or fill level – and sends it via a mobile network or local network to a defined target system. There, an application processes the information and, if necessary, initiates an action – such as a reorder, a warning or a machine shutdown.

Typically, companies use M2M connections to link individual applications precisely. IoT communication takes it a step further: the data collected by the sensor is sent to a central (usually cloud-based) platform, where it can be analysed, visualised and linked with other systems. This creates an intelligent, dynamic ecosystem that responds automatically, learns from the past and adapts flexibly to new conditions.

Another similarity between IoT and M2M: both offer a wide range of opportunities in almost every industry to optimise processes, reduce costs and develop new business models. You can use IoT and M2M in the following application areas, among others:

1. Logistics and supply chain management
IoT and M2M solutions enable seamless tracking of goods and inventories in logistics. Vehicles, containers or packaging units are equipped with sensors that record position data, temperature or vibrations. This allows companies to control supply chains more precisely, respond automatically to delays and plan routes more economically.

2. Energy and building management
In energy management, IoT-enabled meters and sensors are used to automatically and transparently record consumption. Intelligent systems analyse consumption data and control energy-intensive processes according to demand – for greater energy efficiency, lower operating costs and improved environmental management.

3. Industry and production
IoT is a key element of Industry 4.0, including in the monitoring of machines and systems. By evaluating operating data, maintenance requirements can be detected in advance. At the same time, networked systems enable flexible production, where individual components coordinate with each other, report bottlenecks or reorder materials.

4. Agriculture and cultivation
In agriculture, IoT applications support so-called precision farming. Sensors measure soil moisture, nutrient content or weather data on individual plots. Automated systems analyse this data and precisely control irrigation, fertilisation or crop protection.

5. Smart cities and urban development
Cities use IoT technology to make infrastructure and services more efficient: intelligent street lighting adapts to movement and daylight, traffic management systems dynamically control traffic flow and environmental monitoring networks provide the basis for greater sustainability by measuring air quality, noise or particulate matter.

6. Retail and brick-and-mortar sales
IoT and M2M solutions enable automated monitoring of inventory, customer footfall and product placement in stores. Shelves, price tags and checkout systems can be controlled centrally and adjusted dynamically. This results in a connected, data-driven retail environment with high responsiveness.

7. Sustainability management and environmental monitoring
Sensors continuously collect data on energy consumption, emissions, air quality or water usage. This information feeds into IoT platforms and makes sustainability measurable and controllable. This makes it easier to identify savings potential, meet reporting obligations and optimise resource consumption.

8. Healthcare and medicine
In the medical field, IoT enables continuous remote monitoring of patient data, such as pulse, blood pressure or blood sugar. Transmitted values can be analysed in real time, allowing immediate response to anomalies. IoT devices also support processes such as bed management, medication tracking or emergency calls in care facilities or hospitals.

9. Mobility and fleet management
In vehicle fleets, M2M technology ensures transparent monitoring and evaluation of driving behaviour, routes and maintenance status. Companies can optimise fuel consumption, track vehicle locations in real time and respond proactively to breakdowns.

10. Security technology and access control
IoT-based access solutions allow access systems to be managed dynamically and access rights to be granted based on time or roles. Smart cameras, motion detectors and alarm systems create an integrated security concept that reacts to incidents in real time and can also be controlled via mobile devices.

IoT applications and M2M communication have long since become integral components of forward-looking corporate strategies. The intelligent networking of machines, sensors and systems not only enables short-term efficiency gains, but also paves the way for continuous innovation and long-term viable business models. What counts is not so much the size of the company, but rather the ability to strategically integrate scalable, flexible and secure solutions. Modular platforms, robust network infrastructures and open interfaces create the foundation for dynamically automating processes, sustainably improving internal operations and systematically tapping into new market potential

Connected vehicles not only offer greater comfort for drivers – they also create concrete business value for companies, manufacturers, and mobility providers. 

• More efficient fleet management through live tracking, deployment planning, and condition monitoring
• Fewer downtimes thanks to predictive maintenance
• Increased safety through automatic emergency call systems such as eCall
• Data-based analysis to optimise driving behaviour and reduce costs
• Improved traffic management, as vehicles can share data with urban infrastructures 

Connected cars are more than just a technological upgrade – they create real added value for various stakeholders along the entire automotive value chain. Vehicle connectivity affects production, operation, usage, and infrastructure. 

Automotive manufacturers: For manufacturers, connected cars provide a direct link to the vehicle – and thus to the customer. Connected services enable new digital business models, such as: 

• Remote diagnostics and OTA updates
• Data-driven product development
• Individual service offers based on usage
• Improved customer loyalty through personalisation 

Companies (e.g., fleet operators, logistics, car sharing): Connected vehicles enable precise control and analysis of fleets in real time. This reduces downtimes, lowers operating costs, and increases transparency. Additional benefits include: 

• Optimised routing through real-time traffic data
• Predictive maintenance thanks to telematics
• Driving behaviour analysis for efficiency improvement
• Integration into existing ERP or fleet management systems 

Drivers: Even for end users of a connected vehicle – whether company car drivers or car sharing users – the benefits are significant: 

• Increased safety through eCall and driver assistance
• Comfort through app-controlled vehicle functions
• Real-time navigation with traffic avoidance
• Transparency about vehicle status and maintenance needs 

Road users & cities: Through communication with infrastructure (V2I) and other vehicles (V2V), connected cars contribute to improving overall traffic – a key building block for smart cities. The benefits here include: 

• Dynamic traffic light control to reduce congestion
• Faster response times in accidents or dangerous situations
• Data basis for urban traffic planning
• Greater safety for pedestrians and cyclists (V2P communication) 

Software for connected cars
 

Systems like BMW ConnectedDrive or Car Link for Android allow smartphones to be seamlessly connected to the vehicle – for navigation, media control, or voice operation directly via the infotainment system.

For vehicle connectivity to function reliably and scale effectively, powerful IoT connectivity, stable networks, and strong technology partners are required. Telekom provides tailored solutions for this – from M2M SIM cards and connected telematics to powerful 5G networks and IoT tariffs specifically designed to meet the demands of the automotive industry and other companies.