Tuesday, 3 August 2010

M2M communications market revenues to reach $1.9bn in 2016

World satellite M2M communications market earned revenues of $726m in 2009 and is estimated to reach $1.90bn in 2016, according to market research company Frost & Sullivan analysis.

The market observer said that the US is dominating the world satellite M2M communications market, with 62% share, while the Asia-Pacific region is expected to experience maximum growth in terms of regional share in the long term.

The report said that the development of worldwide, wireless, wireline, and satellite networks in the last twenty years has set the stage for machine-to-machine (M2M) applications and equipment to utilise these existing networks.

Daniel Longfield, research analyst at Frost & Sullivan, said: "Smaller hardware paves the way for greater potential in the M2M industry to foray into new areas, especially in the in mobile or communication-on-the-move applications.

"Reduced equipment costs further accelerated opportunities by helping in the monitoring and tracking of more assets.

"The average revenue per user among cellular operators is in the range of $6 to $7 per month, whereas satellite companies are in the $24 per month range. Additionally, hardware prices for satellite M2M equipment range from $74 to $3,200."

The research firm said that as hardware sales grow, economies of scale will develop and contribute to reductions in unit prices for M2M equipment. As prices fall for M2M equipment, more opportunities will materialise in the vertical markets.

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