Revenues from Mobile Connected M2M and Embedded Devices will rise to $18.9 billion globally by 2014, with consumer and commercial telematics and in vehicle applications accounting for over a third of the total, according to Juniper Research.
Other areas which will contribute significantly to M2M revenues include Mobile Connected Buildings, driven by security needs, and Utility Metering, driven by regulatory initiatives in Europe and economic stimulus funds in the US.
“Despite the ongoing downturn in the automotive sector in developed markets, the most promising M2M area remains the automotive industry”, said Senior Analyst at Juniper Research, Anthony Cox.
“There has been a slow-down in the adoption of telematics because new car sales have stalled, but we anticipate that by 2014 in developed markets over half of new vehicles will be sold with telematics devices using cellular connections.”
Further findings from the Embedded Mobile and M2M research include that operators are starting to view the market for embedded devices and M2M as a market in its own right, rather than an add-on to existing activity.
To effectively address the market for embedded devices and M2M, operators also need to consider reappraising accounting practices and form alliances and partnerships with M2M specialists
The report also found that there is a growing trend for SIM cards to be integrated directly into devices, rather than provisioned at a later date in the ‘aftermarket’.
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