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Driven by security requirements,and utility metering, the machine to machine (M2M) applications are estimated to grow really big. According to Juniper Research, revenues from mobile connected M2M and embedded devices will rise to $18.9 bn globally by 2014.
A third of the revenues will come from consumer and commercial telematics and vehicle applications. Some other areas which will contribute significantly to M2M revenues include mobile connected buildings, alarm systems, smart grids, and tracking devices watched from a monitoring center. Research finds that automotive industry remains the most promising M2M area.
Every object with an embedded mobile SIM card, excluding mobile phones, is included in the M2M market and operators are starting to view the market for embedded devices and M2M as a market in its own right, rather than an add-on to existing activity. The analysts predict that to effectively address the market for embedded devices and M2M, and operators need to consider reappraising accounting practices and form alliances and partnerships with M2M specialists.
They say already there is a growing trend for SIM cards to be integrated directly into devices, rather than provisioned at a later date in the 'aftermarket'.
In the developed markets like Europe, regulatory initiatives in different geographical areas will provide an important fillip for the M2M market such as European directives on smart metering.
Back home, in India big operators, including Reliance Communications are focusing on high impact M2M applications for the rural market. These are mobile applications that aid automation,
surveillance, remote monitoring, and data gathering. A major thrust of Indian operators is on the rural market, the focus is on developing applications that enable automation of agro and
irrigation services, water level monitoring, and data gathering for milk and agri-cooperatives, fisheries, poultry, and soil analysis. However, for the urban market the opportunity lies in mobile ticketing, purchasing in Kiosks, vending machines, and remote monitoring of office automation products.
Interestingly, delay of 3G will not be a deterrent for these services in the country as with the exception of certain consumer applications such as mobile gaming and e-Readers, 3G's use for M2M applications will be limited for the immediate future as M2M usually does not require the high bandwidth that 3G affords.
heenaj@cybermedia.co.in