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Anders Borg writing about the fun and crazy world of mobile technology. You also can read the blog via Twitter or your phone via wap.abiro.com. See the left menu for more news services. Comments on blog entries are moderated, but I'm rather liberal as long as it's not blatant advertising. For general comments, advertising and contribution queries, please use the feedback form. |
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Wednesday, November 08, 2006
Wireless M2M now a sizable market
Update: As the information I based the first revision on was wrong I rewrote the piece using Juniper Research's whitepaper as a base instead.
Juniper Research has just released a new report and a free whitepaper on machine-to-machine communication.
The whitepaper is worth a read, especially for the market info, but don't expect much about the technologies used. For that you might find Comtech M2M whitepapers or Machine-to-Machine (M2M) Communications interesting.
Machine-to-machine (M2M) communication has many facets, and can cover almost any device that needs to communicate something to any other device over a distance. There's also a high degree of integration with business systems involved, making M2M a quite complex affair project-wise.
A typical application is e.g. fleet management where the mobile terminal can report about the device's location, read status on the delivered goods etc, as well as control external devices in different ways.
SMS has dominated such communication for years, but nowadays many such applications instead use data connections over GPRS or similar, as the amount of data transferred and network speeds increase. SIM cards have typically been used for running the M2M client application, but my own guess is that also Java ME will be used for this, for more advanced tasks.
Quote: M2M contracts are longer term compared with subscribers, and machines would not churn or require expensive support as voice customers would.
Juniper estimates that by 2001 M2M will generate a $74B yearly revenue (from $20M 2006), which is a sizable market that surely will continue to increase as uses, awareness, reliability, performance, device size etc improve. This could be compared with the ringtone market that's expected to reach $6.6B by 2009.
Quote: Juniper likewise estimates that the global population of wireless M2M devices will grow from 35 million in 2006 to 250 million in 2011
Not explicitly mentioned in the whitepaper, but it's expected that also the price pressure is considerably lower than in the consumer mobile phone market, so volume doesn't need to be en par with the consumer market.
Is M2M the least known mobile opportunity, considering how much media attention e.g. ringtones, mobile advertizing and mobile search get, while M2M gets pretty much none?
Obviously M2M is not for consumers (at least not directly), but that shouldn't stop industry media to talk about it. Anything that generates revenue should be talked about, and M2M generates direct "we sell stuff for money" revenue without any need for second-hand revenue from advertizing, that's got nothing to do with the core offerings.
What other "hidden" opportunities might there be in the mobile industry?
Juniper Research has just released a new report and a free whitepaper on machine-to-machine communication.
The whitepaper is worth a read, especially for the market info, but don't expect much about the technologies used. For that you might find Comtech M2M whitepapers or Machine-to-Machine (M2M) Communications interesting.
Machine-to-machine (M2M) communication has many facets, and can cover almost any device that needs to communicate something to any other device over a distance. There's also a high degree of integration with business systems involved, making M2M a quite complex affair project-wise.
A typical application is e.g. fleet management where the mobile terminal can report about the device's location, read status on the delivered goods etc, as well as control external devices in different ways.
SMS has dominated such communication for years, but nowadays many such applications instead use data connections over GPRS or similar, as the amount of data transferred and network speeds increase. SIM cards have typically been used for running the M2M client application, but my own guess is that also Java ME will be used for this, for more advanced tasks.
Quote: M2M contracts are longer term compared with subscribers, and machines would not churn or require expensive support as voice customers would.
Juniper estimates that by 2001 M2M will generate a $74B yearly revenue (from $20M 2006), which is a sizable market that surely will continue to increase as uses, awareness, reliability, performance, device size etc improve. This could be compared with the ringtone market that's expected to reach $6.6B by 2009.
Quote: Juniper likewise estimates that the global population of wireless M2M devices will grow from 35 million in 2006 to 250 million in 2011
Not explicitly mentioned in the whitepaper, but it's expected that also the price pressure is considerably lower than in the consumer mobile phone market, so volume doesn't need to be en par with the consumer market.
Is M2M the least known mobile opportunity, considering how much media attention e.g. ringtones, mobile advertizing and mobile search get, while M2M gets pretty much none?
Obviously M2M is not for consumers (at least not directly), but that shouldn't stop industry media to talk about it. Anything that generates revenue should be talked about, and M2M generates direct "we sell stuff for money" revenue without any need for second-hand revenue from advertizing, that's got nothing to do with the core offerings.
What other "hidden" opportunities might there be in the mobile industry?
