Cellular M2M: Generating Profit
from the Business Opportunities
A Worldwide analysis of Machine-to-Machine market opportunities for Cellular networks
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M2M means
"machine-to-machine", "machine-to-man" and
"man-to-machine" and is to do with the remote monitoring and
control of machines. "Cellular M2M" means using cellular
networks for this purpose.
Using cellular m2m, a vending machine can be installed virtually anywhere
but still be connected to a support centre to signal when it is empty, out
of service or to check its cash level. All data to improve the service and
reduce operating costs.
There are many other examples of this new technology already being used to
great effect, sometimes in the most unlikely areas. Insurance companies
are now using the technology to monitor the driving style of policyholders
in exchange for lower insurance premiums, or for paying insurance by the
mile driven. Farmers are using it to monitor crop yields in the fields and
engineers to check water levels on flood plains. Businesses are using it
to check goods in transit and make their operations more effective, at
lower cost.
Existing cellular networks are already providing cost effective solutions,
avoiding the need for new network investments and improving Return on
Investment (ROI) of existing network resources. Yet the M2M market is just
getting going. The opportunity now is to expand on this with the
introduction of cellular packet-based services like CDMA2000 and GPRS,
offering 'always on' wireless availability, direct access to the Internet
and a whole host of IP-based applications and services.
Although there are key challenges for industry participants to deal with -
highlighted and examined in this report - there is no doubt that the
market for cellular M2M applications and services will be large. There are
an estimated 6 billion microprocessors embedded in operating products
worldwide. Many of these would add value if wireless-enabled. There are
also many other products (and people) that would also benefit from being
wireless-enabled.
There are
now an increasing number of applications under development and being
implemented and momentum is building.
This raises many questions, such as:
- How big are the business opportunities?
- When will they arrive?
- What are the opportunities for new entrants?
- Who is driving the market?
- What needs to happen for it all to take off?
This report provides answers to these and many other questions. It also includes a worldwide regional analysis of the business opportunities for cellular-based M2M, providing detailed forecasts to 2008 for:
- M2M Application groups
- Cellular module sales
- Mobile network revenue, identifying ARPU levels and trends per application
- Service provider revenue, also identifying ARPU levels and trends per application
- IT system sales
This
report explores indicative examples of M2M application areas suited to
using cellular networks, defines the main application groups and compares
differences in service requirements and type of end user. It provides an
outline of alternative wireless technologies, comparing them with
cellular, and explores M2M market development - including significant
government issues. The key enablers and benefits for users of M2M
applications are examined, followed by an assessment of key market drivers
and the evolution of a competitive market. All of these inputs provide a
basis for the market forecasts.
The report concludes with a value analysis of the cellular M2M business,
who stands to gain the most and what is required to move the market
forward. It identifies the opportunities for market players and strategic
decisions that must be made and provides an assessment of critical success
factors for market players, including strategic recommendations.
Now is the time to enter this market. Those who hesitate now may well
find they are too late.
This
report will provide valuable information for:
- Mobile Network Operators
- Device and terminal suppliers
- Service providers
- Hardware and software vendors
- Systems integrators
- Financial institutions looking to invest in this area
- Business users.
See also:
Our complementary report which focuses on Wireless M2M and Telematics in Vertical Markets.