09 Aug 2010
M2M Vertical Sector Share Analysis Shows Pre-Recession Recovery and Emergence of New Markets
M2M Vertical Sector Share Analysis Shows Pre-Recession Recovery and Emergence of New Markets
Europe’s leading independent M2M connectivity provider is releasing its latest vertical sector share analysis showing that, despite the economic downturn, vehicle tracking M2M deployments have recovered to pre-recession figures.
- Wireless Logic analysis reveals vehicle tracking recovers to pre-recession growth
- New growth sectors include e-commerce, healthcare and ruggedized PDAs
- Monitoring, provisioning and performance analysis platforms become priorities
London 6th August, 2010 – Wireless Logic (www.wirelesslogic.co.uk), Europe’s leading independent M2M connectivity provider is releasing its latest vertical sector share analysis showing that, despite the economic downturn, vehicle tracking M2M deployments have recovered to pre-recession figures; remaining the biggest M2M sector with 60 per cent of the market.
The sector analysis also shows that, whilst the established M2M sectors have remained healthy and continue to grow steadily (asset tracking, B2B smart-metering, alarming and monitoring) adoption is appearing in a number of other sectors notably healthcare, e-commerce and healthcare applications for remote patient monitoring.
This supports industry predictions says Phil Cole, Co-Founder, Sales and Marketing Director at Wireless Logic: “Earlier this year ABI Research forecast the mobile M2M connectivity market will grow to approximately 225 million connections globally in 2014, a compound annual growth rate of about 25 per cent. Our figures exceed this at around 75 per cent annually and so, perhaps unsurprisingly, we’re starting to see uptake in new and interesting sectors.
M2M Sector Share – August 2010 (largest independent M2M SIM base in Europe).
“The vehicle tracking sector took a hit during the downturn as credit disappeared for many companies,” continues Cole, “but we have seen a complete recovery in this sector to 2008 levels – due, in part, to the emergence of new financing options which have made it easier for companies to get projects off the ground.
“B2B metering and alarming continue to exhibit strong penetration as companies see M2M as a way to make savings in a difficult financial environment and the ruggedized PDA market is booming as we see the increase in large-scale projects in hard-to-reach or rugged environments.”
The analysis shows that uptake has increased in e-commerce – including online takeaway services – many using M2M to speed up the order fulfilment process and, in JustEat.co.uk’s case, achieving reductions in order acceptance times from 2 minutes to just 26 seconds. The retail industry, too, is using routers to provide better coverage to connect their PDAs, PCs and EPOS systems as they increasingly use mobile devices and innovate around new mobile eating experiences.
Vending and Wireless CCTV market penetration continued to grow throughout the early part of the year as a result of many security companies choosing wireless solutions that allow them to remotely monitor up-time and performance. Finally, the industry saw huge growth in the healthcare sector with M2M being used in a host of patient monitoring applications.” According to management consultancy McKinsey, the healthcare industry could save $175-200 billion annually by managing chronic diseases through remote monitoring.
Wireless Logic’s sector share analysis was compiled based on the number active SIMs and Teldat routers deployed both via its network of 1000 systems integrators across the UK and directly to customers such as multifunction printing company, Konica Minolta. It also analysed the interest in and use of Wireless Logic’s ManageNet and SIMPRO platforms, used by customers to activate/suspend SIMs and monitor data usage/performance in real time to extract a deeper level of performance and behaviour data.
Trend: increased interest in monitoring and analysis tools
The last twelve months have seen many organisations migrate their base of SIMs to Wireless Logic's fully managed, fixed IP connectivity service in order to improve control over the usage and cost of each connection and, for the first time, to analyse the performance, procurement and activation of its SIM base via Wireless Logic's ‘ManageNet’ platform and ‘SIMPRO’ provisioning system.
Phil Cole sees the rise in interest of its management platform as indicative of a desire to extract real intelligence from each connection: “We have seen a 50 per cent increase in the use of ManageNet and SIMPRO amongst our existing customers and a 30 per cent increase in new enquiries in the last six months alone. Unlike voice, a data SIM can reveal a lot of very useful information for customers looking to save money and monitor the efficiency of their services. Vehicle tracking companies are using ManageNet to increase reliability and give a better visibility of Estate of SIM’s and devices. Construction companies are using SIMPRO to tag and activate inventories of valuable equipment, constantly being used in the field to prevent costly theft. This kind of additional value is what customers are now looking for in their data contracts.”
