M2M & Embedded Strategies

Overview

- Expert Intelligence for Key Growth Sectors
- M2M Service Revenue Forecasts for five Years
- Extensive Strategic Planning Platform

This highly anticipated second edition Machine-to-Machine report explores in detail the opportunities for key markets within the M2M industry, providing valuable forecasts and strategic analysis for the prospects of M2M and embedded devices in several industries, notably Consumer Electronics, Healthcare, Telematics, Metering & Connected Buildings.

The extensive forecasting suite calculates data points for each sector, sizing the market for service revenues generated by M2M, revenues achievable from connectivity enablement & management as well as providing estimates for the value of network traffic, each by eight regions, for five years.

M2M market drivers and enablers are considered, such as the fragmented nature of the M2M industry and the challenges inherent in developing the connected ecosystem.  M2M vendor profiles and interviews are presented, exploring the various business models and strategies currently employed.

Table of Contents

Executive Summary

1. The M2M Market Place

1.1 Introduction 24
1.1.1 Scope of This Report 24

1.2 Defining M2M 25
1.2.1 The M2M Ecosystem 25
Figure 1.1: The Machine to Machine Information Cycle 25
1.2.2 SCADA 26
1.2.3 AMI 26
1.2.4 Telematics 27
1.2.5 Telemetry 27

1.3 Overview of M2M Markets 27
1.3.1 Consumer and Commercial Vehicular Telematics 27
1.3.2 Smart Metering 28
1.3.3 POS, Retail and Banking 29
1.3.4 Consumer Electronics 29
1.3.5 Healthcare and Remote Patient Monitoring 29
1.3.6 Smart Buildings and Security 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.3.7 M2M Use Cases 30
Table 1.1: Major M2M Addressable Markets, Use Cases and Potential 30
1.4 The M2M Business Case 31
1.4.1 Drivers 31
i. Industry Momentum 31
ii. Cost Savings Potential 32
iii. Regulation 32
iv. Ubiquitous Network Coverage 32
v. Lower module and chipset pricing 32
1.4.2 Inhibitors 32
i. Low ARPU 33
ii. Market Fragmentation 33
iii. Long Industry Lead Times 33
Table 1.2: Deployment Cycles by Industry 34
iv. Requirement for Long Product Lifetimes 34
Table 1.3: M2M: Drivers and Inhibitors by Industry 34
1.4.3 Requirements for Success 35
1.4.4 Developing the M2M Ecosystem 35
Figure 1.2: The M2M Opportunity. Now and in the Future 36
1.5 M2M Data Usage 36
Figure 1.3: M2M Bandwidth Requirements by Use Case 37
1.6 Approach to Forecasts 37
1.6.1 Forecast Changes for 2011 37
1.6.2 Deployments 38
1.6.3 Underlying Assumptions 39
1.6.4 Trends and Observations Influencing the Forecasts 39
i. Consumer and Commercial Vehicular Telematics 39
ii. Smart Metering 39
iii. POS, Retail and Banking 39
iv. Consumer Electronics 39
v. Healthcare and Remote Patient Monitoring 40
vi. Smart Buildings and Security 40
1.7 Summary Forecasts 40
1.7.1 Devices 40
Figure 1.4:  Number of Connected Devices (m) Split by M2M Category 2011-2016 40
Table 1.4: Number of Connected Devices (m) Split by 7 M2M Categories 2011-2016 41
Figure 1.5: M2M Deployments Split by 8 Key Regions, 2016 41
Table 1.5: M2M Deployments Split by 8 Key Regions, 2016 42
1.7.2 Revenues Enabled by M2M 42
Figure 1.6: Service Revenues Enabled by M2M ($m) Split by 7 M2M Categories 2011-2016 43
Table 1.6: Service Revenues Enabled by M2M ($) Split by 7 M2M Categories 2011-2016 43
Figure 1.7: Distribution of Revenues (%) Enabled by M2M Split by 7 Categories, 2016 44
Table 1.7: Distribution of Revenues (%) Enabled by M2M Split by 7 Categories, 2016 44
1.7.3 Connectivity Enablement and Connectivity Management Revenues 44
Figure 1.8: Revenues from Connectivity Enablement and Connectivity Management ($m) Split by 7 M2M Categories 2011-2016 45
Table 1.8: M2M Revenues Attributable to Connectivity Enablement and Connectivity Services (m) Split by 7 M2M Categories 2011-2016 45
1.7.4 Data Traffic Values 45
Table 1.9: Value of M2M Data Traffic ($m) Split by 7 M2M Categories 2011-2016 46
1.8 Conclusion 47

2. M2M Players and Positioning

2.1 Introduction 48
Figure 2.1: Elements of the M2M Value Chain 48
2.2 Market Players 49
2.2.1 SIM and Module Hardware Players 49
2.2.2 Network Connectivity Providers- the Operators 49
2.2.3 The Service Enablers 50
Figure 2.2: Value of the M2M Components over Time 50
2.3.1 Annoucements 51
i. Vodafone, Verizon, nPhase Form Partnership 51
ii. GSMA forms M2M Taskforce 51
iii. Itron, Vodafone, Italgas Form Partnership for Smart Metering 51
iv. Jasper Wireless and Telefonica Partner on M2M 51
v. Telenor signs Pan-European Deal with Nissan for All-electric Vehicles 51
vi. AT&T Creates Program to Foster M2M over 3G Networks 51
vii. Telit to Acquire Motorola M2M Chipset Arm 52
viii. Sprint Announces M2M Partners 52
2.4 M2M Operators 52
2.4.1 Jasper Wireless 52
Figure 2.3: Jasper Wireless Service Offering 54
2.4.2 Kore Telematics 54
2.4.3 Aspider  Solutions 55
2.4.4Telenor Connexion 56
2.4.5 Wyless 58
2.4.6 Eseye 59
Figure 2.4: Eseye SIM Management Portal 60
2.5 Module and SIM Suppliers 61
2.5.1 Sierra Wireless 61
2.5.2 Telit 63
2.6 Conclusion 64
Figure 2.5: Player Positioning Within the M2M Market 64

3. Consumer and Commercial Vehicular Telematics

3.1 Introduction 66
3.1.1 Opportunities 66
3.1.2 Regulatory Initiatives 66

 

i. EU and Brazilian Regulation 67
3.2 Vehicular Telematics Verticals 67
3.2.1 Overview 67
3.2.2 Engine Management and In-Vehicle Networks 68
i) CAN Bus 68
3.2.3 Recent Developments and Initiatives 68
i. Vehicle Manufactures Focus on Telematics 69
ii. Telenor Connexion and Nissan Collaborate 69
iii. Nokia Siemens, Smartlab Partner on Electric Vehicle Charging 69
3.3 Consumer Vehicular Telematics 69
3.3.1 Forecast Methodology for Consumer Telematics 69
Figure 3.1: Consumer Telematics Methodology 70
Figure 3.2: Number of Consumer Vehicles with Telematics Installed (m)  Split by 8 Key Regions 2011-2016 71
Table 3.1: Number of Consumer Vehicles with Telematics installed (m)  Split by 8 Key Regions 2011-2016 71
3.3.2 Consumer Vehicle Telematics Service Revenues 72
Figure 3.3: Service Revenues from Consumer Telematics ($m)  Split by 8 Key Regions 2011-2016 72
Table 3.2: Service Revenues from Consumer Telematics ($m)  Split by 8 Key Regions 2011-2016 73
3.3.3 Connectivity Enablement Revenues- Consumer Telematics 73
Figure 3.4: Connectivity Enablement Revenues- Consumer Telematics ($m)  Split by 8 Key Regions 2011-2016 73
Table 3.3: Connectivity Enablement Revenues- Consumer Telematics ($m)  Split by 8 Key Regions 2011-2016 74
3.3.4 Value of Data Traffic Associated with Consumer Telematics 74
Figure 3.5: Value of Data Traffic- Consumer Telematics ($m)  Split by 8 Key Regions 2011-2016 74
Table 3.4: M2M Data Connectivity Values- Consumer Telematics ($m)  Split by 8 Key Regions 2011-2016 75
3.4 Commercial Vehicle Telematics Forecasts 76
3.4.1 Methodology 76
Figure 3.6: Commercial Telematics Methodology 76
3.4.2 Commercial Vehicles with Telematics Installed 76
Figure 3.7: Number of Commercial Vehicles with Telematics Installed (m)  Split by 8 Key Regions 2011-2016 77
Table 3.5: Number of Commercial Vehicles with Telematics Installed (m)  Split by 8 Key Regions 2011-2016 77
3.4.3 Commercial Telematics Service Revenues 77
Figure 3.8: Service Revenues from Consumer Telematics ($m)  Split by 8 Key Regions 2010-2016 78
Table 3.6: Service Revenues from Commercial Telematics ($m)  Split by 8 Key Regions 2011-2016 78
3.4.4 Connectivity Enablement- Commercial Telematics 79
Figure 3.9: Connectivity Enablement Revenues-Commercial Telematics ($m)  Split by 8 Key Regions 2011-2016 79
Table 3.7: Connectivity Enablement Revenues- Commercial Telematics ($m)  Split by 8 Key Regions 2011-2016 79
3.4.5 Value of Data Traffic Associated with Commercial Telematics 80
Figure 3.10: Value of Data Traffic- Commercial Telematics ($m)  Split by 8 Key Regions 2011-2016 80
Table 3.8: M2M Data Connectivity Values- Commercial Telematics ($m)  Split by 8 Key Regions 2011-2016 80
3.5 Conclusion 81
3.5.1 Telematics Summary Tables 81
Figure 3.11: Global Vehicles with Telematics Devices Installed (m)  Split by Consumer and Commercial 2011- 2016 81
Table 3.9: Global Vehicles with Telematics Devices Installed (m)  Split by Consumer and Commercial 2011- 2016 81
Figure 3.12: Summary Table: Consumer Telematics Industry Value ($m)  Split by Service Revenue, Connectivity Service & Enablement, Traffic Value 2011-2016 82
Table 3.10: Summary Table: Consumer Telematics Industry Value ($m)  Split by Service Revenue, Connectivity Service & Enablement, Traffic Value 2011-2016 82
Figure 3.13: Summary Table: Commercial Telematics Industry Value ($m) Split by Service Revenue, Connectivity Service & Enablement Revenues, Traffic Value 2011-2016 83
Table 3.11: Summary Table: Commercial Telematics Industry Value ($m) Split by Service Revenue, Connectivity Service & Enablement Revenue, Traffic Value 2011-2016 83
Figure 3.14: Summary Table: Consumer & Commercial Telematics Industry Value ($m) Split by Service Revenue, Connectivity Service & Enablement Revenue, Traffic Value  2011-2016 83
Table 3.12: Summary Table: Consumer & Commercial Telematics Industry Value ($m) Service Revenue, Connectivity Service & Enablement Revenue, Traffic Value 2011-2016 84
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4. Smart Metering and Industrial Applications

4.1 Introduction 85
4.1.1 Background 85
4.1.2 Smart Metering Definitions 85
i. The Smart Grid 86
4.1.3 Current Status 86
4.1.4 Recent Developments 86
Table 4.1: Selected Smart Metering Initiatives, Europe 88
Table 4.2: Selected Smart Metering Deployments, North America 89
Table 4.3: Selected Smart Metering Deployments, Asia-Pacific 89
4.2 Smart Metering Forecasts 90
4.2.1 Methodology 90
Figure 4.1: Smart Metering Forecasts Methodology 90
4.2.2 Smart Metering Forecasts: Number of Cellular Connected Smart Meters 91
Figure 4.2: Number of Cellular Connected Smart Meters (m)  Split by 8 Key Regions 2010-2016 91
Table 4.4: Number of Cellular Connected Smart Meters (m)  Split by 8 Key Regions 2011-2016 92
4.2.3 Smart Metering Service Revenues 92
Figure 4.3: Service Revenues from Smart Metering ($m) Split by 8 Key Regions 2011-2016 92
Table 4.5: Service Revenues from Smart Metering ($m) Split by 8 Key Regions 2011-2016 93
4.2.4 Connectivity Enablement- Smart Metering 93
Figure 4.4: Connectivity Enablement Revenues- Smart Metering ($m)  Split by 8 Key Regions 2011-2016 94
Table 4.6: Connectivity Enablement Revenues- Smart Metering ($m) Split by 8 Key Regions 2011-2016 94
4.2.5 Value of Data Traffic- Smart Metering 94
Figure 4.5: Value of Data Traffic- Smart Metering ($m) Split by 8 Key Regions 2011-2016 95
Table 4.7: Value of Data Traffic- Smart Metering ($m) Split by 8 Key Regions 2011-2016 95
Figure 4.6: Summary Table: Global Smart Metering Industry Value ($m) Split by Service Revenues, Connectivity Service & Enablement Revenues, Traffic Value 2011-2016 96
Table 4.8: Summary Table: Global Smart Metering Industry Value ($m) Split by Service Revenue, Connectivity Service & Enablement Revenue, Traffic Value 2011-2016 96

5. Emerging M2M Applications

5.1 Introduction 97
5.2 POS, Retail and Banking 97
5.2.1 POS, Retail and Banking Forecast Methodology 98
Figure 5.1: Forecast Methodology for POS, Retail, Banking and Smart Vending 98
Figure 5.2: Number of POS, Retail & Banking M2M Devices in Service (m)  Split by 8 Key Regions 2011-2016 99
Table 5.1: Number of POS, Retail and Banking M2M Devices in Service (m)  Split by 8 Key Regions 2011-2016 99
5.2.2 POS, Retail and Banking Service Revenues 100
Figure 5.3: Service Revenues from POS, Retail and Banking ($m)  Split by 8 Key Regions 2011-2016 100
Table 5.2: Service Revenues from POS, Retail and Banking ($m)  Split by 8 Key Regions 2011-2016 100
5.2.3 Connectivity Enablement POS, Retail and Banking 101
Figure 5.4: Connectivity Enablement Revenues- POS, Retail and Banking ($m)  Split by 8 Key Regions 2011-2016 101
Table 5.3: Connectivity Enablement Revenues- POS, Retail and Banking ($m)  Split by 8 Key Regions, 2011-2016 101
5.2.4 Value of Data Traffic Associated with POS, Retail and Banking 102
Figure 5.5: Value of Data Traffic-POS, Retail, Banking and Smart Vending ($m)  Split by 8 Key Regions 2011-2016 102
Table 5.4: Value of Data Traffic-POS, Retail, Banking and Smart Vending ($m)  Split by 8 Key Regions 2011-2016 102
5.3.1 The Use of M2M in Healthcare 103
5.3.2  Healthcare Forecasts 103
5.3.3 mHealth Market-Sizing and  Methodology 104
Figure 5.6: Remote Monitoring Methodology 104
5.3.4 Remote Health Monitoring Forecasts 105
Figure 5.7: Number of Monitored Individuals (m) Split by 8 Key Regions 2011-2016 105
Table 5.5: Number of Monitored Individuals (m) Split by 8 Key Regions 2011-2016 105
5.3.4 Service Revenues from Remote Health Monitoring 106
Figure 5.8: Service Revenues from Health Monitoring ($m) Split by 8 Key Regions 2011-2016 106
Table 5.6: Service Revenues from Health Monitoring ($m) Split by 8 Key Regions 2011-2016 107
5.3.5 Connectivity Enablement Revenues- Mobile Health Monitoring 107
Table 5.7: Revenues from Connectivity Enablement-Mobile Health Monitoring ($m)  Split by 8 Key Regions 2011-2016 107
Figure 5.9: Connectivity Enablement Revenues-Mobile Health Monitoring ($m)  Split by 8 Key Regions 2011-2016 108
5.3.6 Value of Data Traffic- Mobile Health Monitoring 108
Figure 5.10: Value of Data Traffic - Mobile Health Monitoring ($m)  Split by 8 Key Regions 2011-2016 108
Table 5.8: Value of Data Traffic- Mobile Health Monitoring ($m)  Split by 8 Key Regions 2011-2016 109
5.5 The Connected Consumer Electronics Market 110
5.5.1 Devices 110
Figure 5.11: Embedded Consumer Electronics Methodology 111
5.5.2 Consumer Electronic Device Forecasts 111
Figure 5.12: Number of Connected Consumer Electronics Devices (m)  Split by 8 Key Regions 2011-2016 112
Table 5.9: Number of Connected Consumer Electronics Devices (m) Split by 8 Key Regions 2011-2016 112
5.5.3 Service Revenues from Connected Consumer Electronics 112
Figure 5.13: Service Revenues from Connected Consumer Electronics ($m)  Split by 8 Key Regions 2011-2016 113
Table 5.10: Service Revenues from Connected Consumer Electronics ($m)  Split by 8 Key Regions 2011-2016 113
5.5.4 Connectivity Enablement Revenues- Consumer Electronics 113
Figure 5.14: Connectivity Enablement Revenues- Consumer Electronics ($m)  Split by 8 Key Regions 2011-2016 114
Table 5.11: Connectivity Enablement Revenues- Consumer Electronics ($m)  Split by 8 Key Regions 2011-2016 114
5.5.5 Value of Data Traffic- Consumer Electronics 114
Figure 5.15: Value of Data Traffic - Consumer Electronics ($m)  Split by 8 Key Regions 2011-2016 115
Table 5.12: Value of Data Traffic – Consumer Electronics ($m)  Split by 8 Key Regions 2011-2016 115
5.6.1Background 116
5.6.2 Forecast Methodology 116
Figure 5.16: Methodology for Connected Buildings 117
5.6.2 Device Numbers- Smart Buildings and Security 117
Figure 5.17: Number of Cellular Connected Modules, Smart Buildings and Security (m)  Split by 8 Key Regions 2011-2016 117
Table 5.13: Number of Cellular Connected Modules for Buildings in Service (m)  Split by 8 Key Regions 2011-2016 118
Figure 5.18: Service Revenues ($m) Attributable to Connected Buildings  Split by 8 Key Regions 2011-2016 119
Table 5.14: Service Revenues ($m) Attributable to Connected Buildings  Split by 8 Key Regions 2011-2016 119
5.6.3 Connectivity Enablement- Smart Buildings and Security 120
Figure 5.19: Connectivity and Enablement Revenues- Smart Buildings and Security (m)  Split by 8 Key Regions 2011-2016 120
Table 5.15: Connectivity Enablement Revenues-Smart Buildings and Security (m)  Split by 8 Key Regions 2011-2016 120
5.6.4 Value of Data Traffic – Smart Buildings and Security 121
Figure 5.20: Value of Data Traffic, Smart Buildings and Security ($m)  Split by 8 Key Regions 2011-2016 121
Table 5.16: Value of Data Traffic, Connected Buildings and Security (m) Split by 8 Key Regions 2011-2016 121
5.7 Conclusion 122

Appendix 1: M2M Technologies

1.1 Introduction 123
1.2 Short Range Wireless Technologies 123
1.2.1 WiFi and Bluetooth 123
1.2.2  ZigBee 123
1.3 M2M Backhaul 124
1.3.1  DSL 124
1.3.2 WiMAX 124
1.4 Use of Cellular Technologies in M2M 124
1.4.1 2G Technologies 125
1.4.2 3G Technologies 125
1.4.3 HSPA (High Speed Packet Access) 125
1.4.4 LTE 125
1.5 Satellite M2M 126
1.5.1Role Satellite Plays 126
1.5.2 Satellite Operators Offering M2M 126

Appendix 2: Smart Metering Roll Outs & Commitments 2009 Onwards

Table A1: Smart Metering Commitments 2009 Onwards 128

Companies Referenced

AT&T, America Movil, Aspider, CardioNet, China Mobile, Cinterion, Cobra, Daimler Fleetboard, Deutsche Telekom, eCardio, Ericsson, Eseye, Gemalto, GSMA, Haldex Brake Products, Healthanywhere, Healthrageous, Huawei, iMetricus, Intellidrive, Italgas, Itron, Jasper Wireless, Kore Telematics, KPN, LifeWatch, Masternaut, MedApps, Mix Telematics, Motorola, Nissan, nPhase, Numerex, O2, Orange, Rogers Communications, Scania, Securitas Direct, Sierra Wireless, SIMCom, Sprint, Telefonica, Telematics, Telenor, Telit, Telstra, T-Mobile, Verizon Wireless, Qualcomm, VimpelCom, Vodafone, Volvo, Wavecom, WellDoc, Wyless, ZTE