M2M : Machine 2 Machine

A new report has been released by Berg Insight on the evolution and growth of M2M as it relates to the penetration of Mobile Broadband.

M2M is an abbreviation for machine-to-machine, or a technology that supports wired or
wireless communication between devices. Wireless M2M comprises all wireless network
technologies, even though the term is generally used in reference to systems connected to
cellular networks. Mobile broadband is defined as high-speed Internet connectivity delivered
on cellular network infrastructure. As 3G mobile networks become prevalent, hardware
platforms for wireless M2M and mobile broadband increasingly converge. This report is
aimed at describing and analysing the market for wireless M2M and mobile broadband
communication devices using cellular network technologies such as GSM/GPRS/EDGE,
WCDMA/HSPA and CDMA2000/EVDO.

Per research by Berg Insight there are 9 million active Wireless M2M devices in US and Canada. The majority of these devices are used in Telematics – tracking vehicles: Freight, Rail, Public Utility vehicles (Garbage etc). The does not account for the work that is being done by companies in Industrial monitoring. This is a far more fragmented market and difficult to measure. But this is the segment where there is a likely progression for wireless M2M based automation and control. The current report focuses on the usual large suspects

• Telematics – as offered by Car Manufactures (OnStar etc)
• Utility Meter Reading
• Security Market ( I disagree with this for now as there first needs to be a solutions for a secure / fault tolerant Wireless connection)

The report continues to claim that market will grow to 66 million by 2011 which may very well be true – But if you account for all the fragmented M2M initiatives that are takign place in teh market this number will be higher.

A new research report from the analysis firm Berg Insight forecasts that at least 25 million machines will be connected to mobile networks in Europe by 2009. Currently Berg Insight estimates the number of wireless M2M connections on the continent to 5 million. “We know that growth in the number of mobile phones is coming to an end in the developed world. There is however now clear evidence that other devices will assume the leading role in market developments. As people migrate to the new 3G networks in growing numbers, the old reliable GSM-networks will increasingly become the domains of our machines”, comments Tobias Ryberg, senior analyst at Berg Insight.

Utility meters and vehicles are identified as the segments with the far greatest potential. “Right now we have several projects where up to 500,000 electricity meters will be connected to mobile networks for automated meter reading and that is just the beginning”, says Tobias. “It is the same in the vehicle sector. Half a million trucks are now monitored with GSM/GPS as part of Germany’s Toll Collect system and over one hundred thousand motorists in Italy have signed up for pay-as-you-drive insurance schemes.” Tobias believes GSM/GPS tracking technology will soon become widely used for mileage-based motor vehicle taxation and speed limit enforcement, as well as voluntary reporting of driving behaviour to insurance companies.

The report also identifies several other growth areas for wireless M2M in the security and retail sectors. Mobile communication technology is today commonly used in alarm systems, payment terminals, parking machines and various industrial remote monitoring systems.

M2M, Automation, Telemetry, Remote Monitoring, LBS

Chicago (IL) – Analysts believe that Machine-to-Machine (M2M) will be the fastest growing segment in cellular technology over the next ten years. According to ABI Research, M2M will achieve a yearly unit growth of 40 percent. While the technology is there, many potential customers still have to learn what M2M can offer to improve business processes.
A recently released study by ABI Research outlines M2M as the next big thing in cellular technology. While shipments of common handsets are estimated to top out at about ten percent growth per year, M2M might achieve 40 percent, ABI says.

While the technology is growing rapidly, applications and customers are on a slower pace. Steve Pazol, CEO of nPhase, a Chicago-based company which provides M2M solutions believes that M2M still faces certain obstacles, which will have to be removed in order to make the technology successful.

M2M, Automation, Telemetry, Remote Monitoring, LBS