M2M 2011: Opportunities and Challenges with Connected Devices
M2M is set to transform the telecoms industry
M2M will allow operators to expand their portfolio of offerings and therefore create new value added services and revenue streams in an increasingly saturated market place. M2M has potential applications in virtually limitless number of industries, with successful current uses documented in the report, in the automotive, e-health and energy sectors. This report proposes business models for successful adoption of M2M by operators.
Monetising future M2M applications
Smart metering, Smart Services and the Connected Home are just some of the M2M services, covered in this report, that promise to transform the lives of end-users, in addition to increasing operator revenues. For operators this research allows for the assessment of the current M2M space. For enterprises this report examines how to increase efficiency levels and reap the significant OpEx and CapEx savings that M2M delivers.
How pervasive will M2M be in the future?
Global M2M connections will top 850 Million by 2016. Adoption of M2M is inevitable, but to benefit from the technology, a successful strategy must be employed. This timely report is essential for potential ecosystem members, who must take action now to ensure their share of the $66 Billion industry of M2M in 2016.
What is Different about this Report?
We conducted an independent and unbiased non-vendor affiliated assessment of the M2M market. We surveyed and interviewed several key industry players to gain an in-depth view of the market. We believe such a research will help you in assessing the market potential and in designing M2M strategies.
Some of the key points researched and forecasted include:
Who needs to read this report?
M2M will allow operators to expand their portfolio of offerings and therefore create new value added services and revenue streams in an increasingly saturated market place. M2M has potential applications in virtually limitless number of industries, with successful current uses documented in the report, in the automotive, e-health and energy sectors. This report proposes business models for successful adoption of M2M by operators.
Monetising future M2M applications
Smart metering, Smart Services and the Connected Home are just some of the M2M services, covered in this report, that promise to transform the lives of end-users, in addition to increasing operator revenues. For operators this research allows for the assessment of the current M2M space. For enterprises this report examines how to increase efficiency levels and reap the significant OpEx and CapEx savings that M2M delivers.
How pervasive will M2M be in the future?
Global M2M connections will top 850 Million by 2016. Adoption of M2M is inevitable, but to benefit from the technology, a successful strategy must be employed. This timely report is essential for potential ecosystem members, who must take action now to ensure their share of the $66 Billion industry of M2M in 2016.
What is Different about this Report?
We conducted an independent and unbiased non-vendor affiliated assessment of the M2M market. We surveyed and interviewed several key industry players to gain an in-depth view of the market. We believe such a research will help you in assessing the market potential and in designing M2M strategies.
Some of the key points researched and forecasted include:
- How is the M2M ecosystem developing?
- What are the opportunities offered by M2M communications to mobile network operators?
- What are the challenges faced by operators in embracing M2M?
- How can operators use Mobile device management to manage the connected devices?
- Which areas or market verticals offer greatest potential for the use of M2M communications?
- What is the lifecycle stage of M2M communications?
- Which geographical regions offer the greatest growth potential for M2M services?
- What are the opportunities for app developers in different market verticals?
- How are M2M communications being used in the sectors such as smart transportation and healthcare?
- How can operators ensure that they offer the best services?
- What are the successful strategies for operators to monetise in the M2M market?
Who needs to read this report?
- Service Providers - Operators are set to gain a wide revenue stream from M2M services and applications, providing a much needed boost to ARPU in an increasingly saturated market. This report provides carefully considered strategies that will help operators reap benefits. This report also details the new business models needed in preparation for monetising M2M.
- M2M ecosystem members - Everyone from equipment manufacturers to application developers will benefit from this reports detailed analysis of current business model, proposed revenue share agreements and an overview of the current market.
- Enterprises - Enterprises stand to benefit in several vital ways from the successful adoption of M2M. This report evidences potential savings and operational benefits while also addressing the barriers, giving a complete view of how to create a successful M2M strategy.
Contents
EXECUTIVE SUMMARYE1. Growing Uses for M2M
E2. M2M to Become Ubiquitous
E3. M2M for Enterprise
E4. LTE and M2M Uptake
E5. Points Emerged from this Research
1. INTRODUCTION - WHAT IS M2M?
1.1 M2M History and Recent Developments
1.2 The Impact of Cloud Computing on M2M
1.3 M2M Entering Rapid Growth Phase
1.4 Aim of the Report
1.5 Questions Answered by this Report
1.6 Structure of the report
1.7 Methodology
2. CURRENT M2M MARKET AND BUSINESS MODELS
2.1 Network concerns for M2M
2.1.1 Requirements to Solve M2M Deployment Issues
2.1.1.1 Secure Data
2.1.1.2 GPRS / SMS / CDMA / LTE
2.1.1.3 Two-Way Communication
2.1.1.4 Support for More than One Communication Type
2.1.1.5 Availability
2.1.1.6 Costs
2.1.1.7 Toolsets
2.1.1.8 Billing
2.2 M2M Business Case
2.2.1 Smart Services for M2M
2.2.1.1 Smart Service Business Plan for OEMs
2.3 M2M in the Future
2.3.1 Systems Awareness
2.3.2 Business Case for Systems Awareness
2.3.3 M2M Platform Requirements and Opportunities
2.4 e-Book Readers - An M2M Success Story
2.4.1 e-Book Readers by Region
2.4.2 e-Book Readers by vendor
2.4.3 eBook Sales
2.4.4 eBook Reader - an M2M Business Model
2.5 Opportunities with M2M
2.5.1 e-health
2.5.1.1 CardioNet
2.5.1.2 Smart Bandaids
2.5.1.3 Public Health
2.5.1.4 Personal Health
2.5.2 Smart Grid
2.5.3 Connected Appliances
2.5.3.1 Microchip
2.5.4 Why Operators Need the Connected Home
2.5.4.1 What is the Connected Home?
2.5.4.2 Home Area Networks
2.6 Internet Protocol Version 6 - IPV6
2.6.1 Potential Impact of IPv6 on M2M
2.6.2 Successful M2M migration to IPv6
2.6.3 IPv6 to benefit M2M
2.7 M2M Standards and Standards Bodies
2.8 M2M Applications
2.8.1 After-Market M2M Applications
2.8.2 Regulatory M2M Applications
2.8.3 OEM Based M2M Applications
2.8.4 M2M Application Summary
3. KEY M2M PROVIDERS
3.1 nPhase
3.1.1 nPhase M2M Service Delivery Platform
3.1.1.1 Industries served by nPhase
3.1.1.1.1 Wireless Health
3.1.1.1.2 Car Industry and Telematics
3.1.1.1.3 Smart Energy and Utilities
3.1.1.1.4 Consumer Products
3.1.1.1.5 Retail/ATM/POS
3.2 Tyntec
3.2.1 Tyntec Offerings
3.2.1.1 Mobile Outbound SMS
3.2.1.2 Mobile Inbound SMS
3.2.1.3 2-Way SMS
3.2.1.4 Number Lookup
3.2.1.5 Mobile Authentication
3.2.1.6 Mobile Ticketing
3.2.1.7 Online SMS Portal
3.3 Orange and Deutsche Telekom
3.3.1 M2M for Wi-Fi
3.3.2 Everything Everywhere
3.3.3 TeliaSonera
3.4 Nokia Siemens Network and M2M
3.4.1 Metrik Solutions
3.4.1.1 iMETRIK
3.4.1.1.1 iMetrik-COLLECT
3.4.1.1.2 iMetrik-COVER
3.4.1.1.3 iMetrik-PROTECT
3.5 M2M in the LTE Era
3.5.1 Switching from GSM to LTE
3.5.2 Impact of Switch from GSM to LTE on M2M
3.5.3 Future Proofing M2M
3.6 Verizon Wireless
3.6.1 4Home and Connected Solutions
3.6.1.1 4Home Control Home Management
3.6.1.2 4Home Energy Analysis and Management
3.6.1.3 4Home Security and Monitoring
3.6.1.4 LTE and the Connected Home
3.7 AT&T
3.7.1 Axeda
3.7.2 ILS Technology
3.7.3 SensorLogic
3.7.4 Sierra Wireless
3.7.5 AT&T Connected Devices
3.8 NTT DoCoMo
3.8.1 NTT DoCoMo and Telematics
3.9 Vodafone
3.9.1 The Vodafone M2M offering
3.9.2 The Vodafone M2M Offering - Key Features
3.9.3 Global Strategy with Vodafone and Bosch
3.9.4 Telematics Initiative with Vodafone and Hyundai
3.9.4.1 BlueLink Telematics from Hyundai
3.9.4.2 Issues with BlueLink
3.9.5 Vodafone and Intel Partnership to Drive M2M
3.9.5.1 M2M Smart Services Developer Kit
3.9.5.2 Intel and M2M
3.10 M2M Company Directory
4. M2M MARKET FORECASTS
4.1 Connected Devices
4.2 M2M Market Value
4.3 M2M Connections by Region 2010
4.4 M2M Connections by Region 2016
4.5 M2M Connections by Operator 2010
4.6 Connected Devices - Revenue Breakdown
4.7 GSM Subscriptions for M2M
5. M2M CONCLUSIONS AND RECOMMENDATIONS
5.1 M2M Drivers
5.1.1 Network Coverage
5.1.2 Telematics and Telemetry Increasing Efficiency
5.1.3 M2M for Market Segmentation
5.1.4 Service Providers Need to Expand Offerings
5.1.5 Telematics initiatives
5.1.6 IPv6 Will Increase M2M Opportunities
5.1.7 M2M Creating Scope for Development of New Applications
5.2 M2M Barriers
5.2.1 M2M a mystery to consumers?
5.2.2 Difficulties for Developers
5.2.3 M2M Solutions Too Expensive?
5.2.4 Limited 3G Infrastructure Stunting Global Growth?
5.2.5 Technical Problems in Realising M2M
5.3 Recommendations for Service Providers
5.4 Recommendations for MVNOs
5.5 Recommendations for Application Developers
5.6 SWOT Analysis for Operators
LIST OF FIGURES
Figure 1: M2M Diagram
Figure 2.3: Smart Services Revenue Stream Diagram
Figure 2.5: Enterprise benefits from M2M usage
Figure 2.14: CardioNet and the M2M Business model
Figure 2.15: Smart Grid Diagram
Figure 2.17: M2M for Energy Efficiency
Figure 3.9: M2M Ecosystem
Figure 3.11: iMetrik-COLLECT
Figure 3.16: Revenue Share Agreement
Figure 5.1: M2M SWOT Analysis for Operators
LIST OF TABLES
Table 2.6: e-book readers
Table 2.8: eBook Reader Sales 2010-2016
Table 2.12: M2M Industry and Sector Opportunities
Table 2.13: M2M Industry and Sector Opportunities
Table 2.18: M2M Standards Bodies
Table 3.1: nPhase Service Delivery Platforms
Table 3.5: Subsidiaries of Deutsche Telekom
Table 3.6: Subsidiaries of France Telecom-Orange
Table 3.8: TeliaSonera operations
Table 3.10: iMetrik M2M Services
Table 3.12: iMetrik-PROTECT
Table 3.13: proposed LTE roll out schedules
Table 3.14: proposed LTE roll out schedules
Table 3.15: proposed LTE roll out schedules
Table 3.17: 4Home Energy Analysis and Management Service
Table 3.20: M2M Company Directory
Table 3.21: M2M Company Directory
Table 3.22: M2M Company Directory
Table 3.23: M2M Company Directory
Table 4.3: Connected devices 2010-2016
Table 4.6: Global M2M Market Value 2010-2016
Table 4.12: Global M2M Connections 2010-2016
Table 4.16: Revenues of Connected Devices Market 2010-2016
Table 4.21: GSM Subscriptions for M2M
LIST OF CHARTS
Chart 1.1: Global M2M Connections 2009-2010
Chart 2.1: % of Revenue from Services for OEMs
Chart 2.2: % of Margin Contributions from Services for OEMs
Chart 2.4: Kindle sales 2009-2010
Chart 2.7: eBook Reader Sales 2010-2016
Chart 2.9: eBook Readers Market Share by Vendor 2011
Chart 2.10: eBook Sales
Chart 2.11: global Book Sales 2010
Chart 2.14: Average Home Electricity Use
Chart 3.2: US Wireless Health Market Revenue Forecast 2010-2016
Chart 3.3: % of cars manufactured with telematics 2010-2016
Chart 3.4: % of cars with telematics 2016
Chart 3.7: Everything everywhere market share in the UK (2010-2011)
Chart 3.18: AT&T Approved Devices
Chart 4.1: Connected devices 2010-2016
Chart 4.2: Connected devices 2010-2016
Chart 4.4: Global M2M Market Value 2010-2016
Chart 4.5: Global M2M Market Value 2010-2016
Chart 4.7: Share of M2M Connections by Region (2010)
Chart 4.8: % Share of M2M Connections by Region (2010)
Chart 4.9: Share of M2M Connections by Region 2016
Chart 4.10: % Share of M2M Connections by Region 2016
Chart 4.11: Global M2M Connections 2010-2016
Chart 4.13: Number of M2M Connections by Operator (2010)
Chart 4.14: Market Share of M2M Connections by Operator (2010)
Chart 4.15: Revenues of Networked Device 2010-2016
Chart 4.17: Apps and Services Revenues - 2016
Chart 4.18: M2M Revenue Share Model (2016)
Chart 4.19: GSM Subscriptions for M2M
Chart 4.20: GSM Subscriptions for M2M
COMPANIES LISTED
3 Denmark
4Home
7 Layers
ABB Power & Robotics
Aeris Cummunications
Aeroscout
Air Products
Aircell
Al Madar
Alcatel-Lucent
Alien Technology
Alliance for Telecommunication Industry Solutions
Amazon
America Movil
Apple
Arkessa
Arrayent
Asiaspace
AT&T
Atos Origin SA
Augusta Systems
AVIDwireless
Axeda
Barnes & Noble
BayRICS
Bell Canada
Best Buy
Bite
Bookeen
CalAmp
Call Me
CardioNet
Cell C
Cellcom
Cellular South
CentreNet
CenturyTel
CETECOM
Chess Communication (MVNO)
China Mobile
China Telecom
Chunghwa Telecom
Cisco
Claro
CLEAR Mobitel
Commnet Wireless
Comtrol
Condor Technology
Connect One
Coronis
Cox Communications
CSL Limited
DataOnline
DataRemote
Deutsche TeleKom
DiGi
DNA
Dust Networks
E Plus
EBS Technology
Echelon
eDevice
Eesti Telekon
ei3
Electric Power Research Institute
Elisa
Elonex
Ember
Emobile
EMT
Endless Ideas
Enfora
Entel PCS
Entourage
Equant
Esprida
Etisalat Mobility
European Telecommunications Standards Institute
Eurotech
Everything Everywhere
Federal Energy Regulatory Commission
Fnac
Foxit Software
France Tйlйcom
Gemalto
General Electric
Geocell
GlobeCast
GSMA
Halebop
Hanvon
Honeywell International
Huawei
Hughes Telematics
Hutchison 3
IBM
ICARUS Reader
IiMetrik Solutions
ILS Technology
Inilex
Innovacom
Intel
Interead
International Telecommunication Union
iPapyrus
iRex Technologies
Iridium Communications
iRiver
italica GmbH
Itron
Janus Remote Communications
Jasper Wireless
Jinke
Kcell
KDDI
Kobo
Kogan Technologies
Kolporter
KORE Telematics
KPN
KT
Laird Technologies
Lantronix
Lap wireless
Lattelecom
LG Telecom
LightSquared
LMT
M1
M2M Communications
M2M DataSmart
Magyar TeleKom
Marvell
MegaFon
MEMSIC
Metrik Solutions
MetroPCS
Microchip Technology
Millenial Net
Mobikom Austria
Mobyland
Moldcell
Morey
Motorola
Movistar
MOXA
MTS Allstream
Ncell
NetCom
NextGenTel
Nintendo
nPhase
NSN
NTT DoCoMo
Numerex
O2
Omnilink Systems
Omnitell
Onyx International
OpenTransit
Optus
Orange
ORBCOMM
Own Name
Palantiri Systems
Panasonic
PCCW
Pedigree Technologies
Perle Systems
PocketBook
Precidia Technologies
Proteus Biomedical
Public Service Wireless
Qualcomm
RACO Wireless
Red Bend Software
RF Code Inc.
RF Monolithics
Rogers Wireless
Rostelecom
Samsung
Sasktel
Savi Technology
SENA Technologies
SensorLogic
SFR
Shaw Communications
Siemens Water
Sierra Wireless
SIMCom
SingTel
Sixnet
SK Telecom
SkyTel
Slovak Telecom
Smartone
Softbank Mobile
Sony
SpiceNepal
Spring Design
Sprint
Starhub
STC
Stereo International Enterprise
Svyazinvest
Swisscom
Synchronoss Technologies
T Mobile
Tcell
TDC
TelaSonera
Telcel
Tele2
Telecom Italia
Telecom NZ
Telecommunications Industry Association Telefonica
Telefonica O2
TeleNor
Telenor Magyarorszag
Telia
TeliaSonera
Telit Wireless Siolutions
Telstra
Telular
Telus
TELUS Mobility
Tendril Networks
Teo LT
Texas Energy Network
Texas Instruments
ThingMagic
T-Home
T-Hrvatski Telekon
TMN
T-Mobile
T-Online
Tridium
Trimble
T-Systems
Turkcell
Tyntec
U.S. Department of Energy
ublox
UCell
UME EPM
UTC Power
V2COM
Verizon Wireless
VHA
Viva Cell-MTS
Vivo
Vodacom
Vodafone
WebTech Wireless
Wind
Wolder Electronics
Wyless Group
Yoigo
Yota
Your Voice S.p.A.
Zain
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