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Wednesday, 06 October 2010 13:50

Bullish forecasts vindicate Telstra's focus on M2M applications

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Telstra's recently announced focus on the machine to machine market for cellular services has received a ringing endorsement from global research firm, Infonetics, which is forecasting revenue from services to embedded modems in M2M applications to grow at 66 percent CAGR until at least 2014.

Telstra announced last month a service, provided through Jasper Wireless, that will make it much easier and cheaper for companies wanting Telstra SIMs for incorporation in M2M devices to obtain, configure and activate these.

Infonetics has released a new Embedded Mobile M2M Modem Market Outlook report in which it forecasts that worldwide revenue for embedded mobile modems for M2M applications will more than triple from 2009 to 2010 and will grow at a 66 percent compound annual growth rate (CAGR) until at least 2014.

"The number of connections for embedded mobile M2M applications hit 87 million in 2009 and is forecast to jump to 428 million by 2014, driven by wider availability of services, new M2M applications, and 'Connected Society' regulatory and policy initiatives," Infonetics says. The utilities/smart grid vertical accounts for the largest share of overall revenue for embedded mobile M2M modems, with over a quarter of total revenue in 2009.

Infonetics says that, at present, more than half of all embedded mobile connections are GSM based, but expects strong growth in W-CDMA (3G) and later, LTE connections, driven by high bandwidth M2M applications and the need for future-proofing long-life device cycles.

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