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InfoCom says M2M has high growth potential in various market segments worldwide

Press Release
Published: 2011-01-18

M2M is a fast growing and increasingly strategically important market — Most active players are large network operators, especially mobile ones — Development partnerships and cooperation crucial to exchange know-how — Active players include M2M vendors, software providers and resellers, but also a wide variety of different kind of players.

Stuttgart, Germany — According to a recent research carried out by InfoCom the M2M (Machine-to-Machine) market shows significant growth potential worldwide. The M2M technology enables automatic transmission of data between machines, for instance vehicles, vending machines or containers — via mobile and/or fixed networks. M2M has become a fast growing and strategically important market for many companies and network operators as it provides new possibilities for services and solutions for various products and processes. Therefore, a larger number of initiatives between different manufacturers as well as solution and network providers aims at developing M2M solutions nationwide and worldwide. A senior analyst at InfoCom commented: “The M2M technology contributes to improve process efficiency, to support environmentally friendly solutions and to improve productivity. Therefore, M2M solutions are actually spread in many different sectors, from consumer electronics, to healthcare, remote control and telematics of all kinds”.

Some of the most active players on the M2M market are the large network operators, especially mobile ones, which offer special tariffs, SIM cards and chips, as well as service platforms. M2M is part of their strategy to increase the mobile Internet usage and to develop new business models through new market segments as well as new potential customers. A central part of the strategy of the network operators is to improve the exchange of knowledge between different experts, manufacturers and solution providers and to support providers of M2M solutions, both nationally and internationally. “These partnerships and cooperations are strategically important” InfoCom analyst further commented, “as M2M is often an international service and concerns different components and different partners”. For instance, the M2M Alliance — an open initiative of companies providing a platform for discussions and for sharing knowledge. The alliance is based in Germany and has more than 30 members from different sectors: network providers — all German mobile operators — hardware and software companies — among which Cinterion, Device Insight, Sierra Wireless, Telit — and several service providers, among which Tema and Wyless.

Besides network operators, other players in the M2M market mainly consist of specialised companies, for instance hardware manufacturers — vendors of SIM cards and chips — as well as software providers and resellers. Most of these companies, especially larger ones, are active worldwide and have subsidies in various countries. Finally, a number of different kind of players, for instance large manufacturers in other sectors, such as BMW or Continental from the automotive sector, are also active in the development chain of M2M solutions for their own products with specialised M2M vendors.

About this release:

This release is based on InfoCom recent article on the M2M market. The objective of this article is to provide an overview of the German M2M market, the sectors where M2M technologies are used and the providers active in the M2M environment, including examples of partnerships and initiatives of the providers, as well as the membership in organisations and forums. This article is available in TS&T Telecoms Strategies & Trends, a highly analytical telecoms publication. It provides in depth articles on a variety of topics such as companies, markets, and trends.

About InfoCom:

InfoCom is a market research and consultancy company with over 20 years experience providing strategic analyses and planning assistance to stakeholders in the telecommunications, IT and multimedia industries. InfoCom’s independent and fact-based analyses highlight trends and opportunities, supporting decision makers to understand market dynamics in order to improve their competitive advantage.

Published: 2011-01-18





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