The M2M (machine-to-machine) communication market will continue to show growth during the next few years, according to analyst firm ABI Research, Oyster Bay, N.Y. ABI says about 95 million cellular M2M modules will ship in 2013, of which 34 million will be for telematics applications and 39 million will be for telemetry. The remainder of modules will be used for wireless local loop applications, a sometimes gray area for M2M.
Sam Lucero, senior analyst, ABI Research, says of those three application areas telemetry will show the most growth early on. "Until about 2011, the major market growth will be found in the telemetry segment, since it encompasses a broad range of applications including smart metering, POS (point-of-sale) terminals, and remote monitoring and control applications," says Lucero. "After 2011, we expect to see a spike in telematics applications."
Lucero says that after 2011, mandates such as Europe’s eCall will drive telematics adoption. He also cites competitive reaction to GM Corp.’s, Detroit, Mich., OnStar system and greater implementation of commercial telematics for vehicle fleets.
While need for modules will continue to grow, ABI expects average selling prices to decline through about 2010, and then level out. Lucero says it’s not yet clear how much of an impact economic uncertainties will have on the M2M module market. "A few companies have told ABI Research that the economic uncertainty will have a direct impact we’re in the process of surveying selected industry stakeholders to evaluate whether our forecasts will need to be refined," says Lucero.
Source: ABI Research, Oyster Bay, N.Y.