ABI: Telematics Outshines Telemetry in N. America
March 11, 2008 // Published as a news service by IHS
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Machine-to-machine (M2M) technology, in the context of global positioning systems (GPS) and cellular technology, enables a level of efficiency by surveying vehicle speed and global location, as well as projecting an estimated time of arrival.
According to ABI Research, these uses for M2M technology can be found in industries that distribute goods en masse, and in companies that wish to oversee shipments of expensive items.
In traditional consumer/business voice and data services, analysts said coverage is not a significant issue, and roaming, while expensive, is often a rare occurrence.
"In the M2M field, unlike other mobile markets, coverage and roaming are significant challenges," said ABI Research senior analyst Sam Lucero.
"M2M application providers may deploy devices that are mobile over extremely large geographic areas, such as in long-haul trucking telematics in North America, or the application provider may deploy fixed devices over a large, even international geographic area."
Analysts categorized the essence of how M2M applications can be developed and brought to market into four key models:
- Companies can develop an application in-house with or without the aid of consultants, such as IBM or Science Applications International Corporation (SAIC).
- Companies can enable an outside application provider that will supply a packaged application in the form of software and/or equipment.
- Companies can utilize solution providers that supply both the packaged application and network connectivity.
- Companies can turn directly to a communication provider who offers a packaged or custom-developed application, along with network connectivity.
In 2012, analysts said there will be strong overall growth in North American commercial, original equipment manufacturer (OEM) and aftermarket telematics markets, with revenues reaching almost $1.5 billion. Telemetry - advanced metering infrastructure (AMI), security, randomized message authentication (RMAC) and vending - will accrue revenue of nearly $1.2 billion.
"Although the North American telematics market is more mature and saturated than other regions, ABI Research anticipates solid growth, as other OEMs introduce competing services in the 2008 and 2009 timeframes and beyond," Lucero said.
Source: ABI Research.