M2M Market Faces ChallengesSeptember 13, 2012
A new report by Research and Markets predicts growth in the M2M market despite challenges with respect to awareness of technological advancements and higher cost of installation and maintenance.
DUBLIN /BUSINESS WIRE/ -- Research and Markets has announced the addition of the "Machine to Machine (M2M) Market Global Forecast & Analysis (2012–2017) by Hardware Components, Technologies & Applications" report to its offering.
Machine to machine (M2M) refers to technologies allowing both wireless and wired systems to communicate with other devices of the same ability. M2M uses a device (e.g., a sensor or meter) to capture an event (e.g., temperature or inventory level), which is relayed through a network (wireless, wired, or hybrid) to an application (software program) that translates the captured event into meaningful information (e.g., items need to be restocked). Some of the key factors driving the market for M2M solutions include growing range of successful applications, regulatory mandates, penetration of 3G technology, and launch of 4G technology.
However, the M2M market is also facing challenges with respect to awareness levels about technological advancements and higher cost of installation and maintenance. There are several initiatives being taken by companies as well as governments to enhance the awareness levels. With growing demand for innovative solutions, the cost of the solution is also expected to decrease gradually. In terms of revenue generation, North America is observed to hold the highest share (32.1%), followed by Europe with 29.6%.
Amongst the different hardware components used in M2M solutions, the market for communication modules holds the highest share as of 2011 and is expected to grow at a CAGR of 32.4% from 2012 to 2017. Some of the predominant technologies used for communication in M2M solutions are 2G, Ethernet, Wi-Fi, Power Line, and ZigBee. While 2G technology held the highest share of M2M market as of 2011, the market for ZigBee technology is expected to grow at the highest CAGR (33.8%) from 2012 to 2017. This is mainly attributed to its benefits such as low power consumption, low cost, and fast connection time for end-devices. With respect to different application sectors wherein M2M technology is used, the consumer electronics sector is observed to hold the highest share of 30.9% in 2011.
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