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Press Release:
Wireless Machine to Machine (M2M) Sector Enters Rapid Growth Phase, Rising to $44bn by 2009
Press Release
News Article November 2006
Basingstoke, UK, 2-Nov-2006. According to industry watchers Juniper Research the market for Wireless-enabled Machine to Machine applications is now entering a new growth phase with revenues set to grow from $20bn in 2006 to over $44bn by 2009 and $74bn by 2011.
Dr Therese Cory, report author said "Wireless M2M is poised to revolutionise the workings of large organisations across all industries, extending their IT assets in ways hitherto unimagined, provided that they have the vision to grasp the opportunity", She continued: "This is an unusual market, in that all the enabling technology exists and proof of concept is visible in the form of successful implementations in several industries".
What has hitherto prevented a rapid market adoption of M2M technology has been:
· The lengthy, complex and interdependent supply chain necessary for implementation.
· The business case to introduce radically new ways of working for staff, and back office systems.
· The bespoke nature of the solutions available.
· The large implementation costs in hardware, software and system integration.
These factors have contributed to limiting the scope of commercial implementation resulting in many small scale prototypes not been rolled out fully.
Nonetheless, today's market has been transformed by a number of important factors:
· More attractive legislative environment.
· Improvements in wireless technology
· Reduction in component costs
· Standardisation of interfaces
· Adoption by new industries and applications
These new drivers are helping to bring down the barriers to mass adoption with the true value of wireless M2M increasingly being realised. Some of the new applications include home patient management for diabetics and over-the-air updating of mobile handset functionality.
The market opportunity for wireless operators in particular is almost unlimited in the long term. To grasp this opportunity requires an innovative new strategy to ensure they move up the value chain from providing connectivity alone. M2M represents an enormous opportunity given the huge number of devices that could connect, and the low cost of customer acquisition compared to voice subscribers.
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