Researchers predict M2M rebound

Despite the economic downturn taking a bite out of the growth of key machine-to-machine applications, M2M and embedded device revenues are slated to reach $18.9 billion globally by 2014, led by telematics and in-vehicle applications.

That prediction comes today from Juniper Research in a new report titled “Embedded Mobile & M2M Strategies. Consumer and commercial telematics and in vehicle applications will account for more than a third of the total, the researchers said.

Other popular applications will include building security, other connected building applications and utility metering. The latter will get a boost from economic stimulus programs in the U.S. and from regulatory initiatives in Europe, Juniper said.

“Despite the ongoing downturn in the automotive sector in developed markets, the most promising m2m area remains the automotive industry,” said Anthony Cox, senior analyst at Juniper Research. “There has been a slow-down in the adoption of telematics because new car sales have stalled, but we anticipate that by 2014 in developed markets over half of new vehicles will be sold with telematics devices using cellular connections.”

Researchers also offered some advice for communications service providers seeking M2M opportunities. To effectively address the market for embedded devices and M2M, operators need to consider re-appraising accounting practices and form alliances and partnerships with M2M specialists, Juniper researchers said. Service providers also need to view M2M as a market in its own right, rather than an add-on to existing activity—a reality some of them are beginning to grasp, the researchers said.

The M2M market has seen strong overall growth in recent years, despite a recent slow period. Although the market was pioneered by specialty operators such as Aeris Communications, Kore Telematics and Numerex traditional telcos such as Verizon and AT&T have made inroads into the market. Verizon’s vaunted Open Development Initiative--which many hoped would unleash a new approach to mobile consumer devices—has instead had a heavy focus on M2M.