Mobile:
Wireless M2M and Telematics: Gaining Value in Vertical Markets (report)
e-Principles
Management Report October 2003
M2M means machine-to-machine, machine-to-man and man-to-machine and is to do with the remote monitoring and control of machines. Wireless M2M implies that this is achieved over wireless links. This report examines which wireless technologies are best suited to different M2M and Telematics applications, assessing more than 70 different types of application in 16 application groups, and analysing their prospects in major vertical market sectors worldwide.
Summary
A Worldwide analysis of the prospects for wireless technologies in machine-to-machine vertical markets
Description
M2M means "machine-to-machine", "machine-to-man" and "man-to-machine" and is to do with the remote monitoring and control of machines. Wireless M2M implies that this is achieved over wireless links.
This report examines which wireless technologies are best suited to different M2M and Telematics applications, assessing more than 70 different types of application in 16 application groups, and analysing their prospects in major vertical market sectors worldwide.
Technologies covered in the report include:
- Bluetooth
- Cellular - GSM, CDMA, PHS
- RFID
- Wireless LAN - WiFi
- UWB - Ultra-Wideband
- ZigBee
Traditionally, M2M solutions in business have been isolated from a company’s IT systems. They have tended to be localised and custom-designed for a specific purpose in each individual company. However, with the advent of system platforms designed to open standards and with the increasing use of low cost wireless networking, there is now a growing opportunity to link M2M solutions with a company’s IT systems. Enterprises invest heavily in IT to improve business performance and competitiveness through higher levels of automation. An M2M solution directly connected to an enterprise IT infrastructure extends this automation to real-time activities and processes.
At the same time, lower device costs, lower tariffs and increasing use of unlicensed wireless bands have introduced the prospect of many new M2M opportunities in consumer markets.
As a result, the wireless M2M and Telematics market is now rapidly gaining momentum and with it the increasing importance of vertical market solutions. While costs and complexity rise for vertical business solutions, so too do the business benefits. It therefore follows that, as the M2M business matures from its current early days, it will become an increasingly essential way for companies to differentiate their total offerings and compete in their own vertical market sectors.
Sections in this report include:
- The Significance of Wireless M2M
- Matching Technologies to Applications
- Vendor Solutions
- Key Market Trends for Wireless M2M
- Wireless M2M Case Studies
- Analysis of Vertical Markets
- Evaluating the Business Case
- Worldwide Market Forecasts for all Wireless M2M technologies 2003-08
- Strategies for Vertical Markets
The report includes details of supplier solutions for a variety of M2M-related issues, together with detailed case studies of pilot trials and implemented M2M solutions. It also examines how M2M benefits are being evaluated for business case purposes. Market forecasts covering vertical market sectors worldwide for the period 2003-08 are included along with an analysis of strategies for vertical markets.
This report will be valuable for:
- Market players participating in the supply of M2M solutions.
- Business users looking to gain business advantage from implementing M2M.
- Financial institutions looking to invest in this market.
Contents
1 Executive Summary
Overview
Summary of Key Findings
Summary of Recommendations
2 Introduction
Scope of Study
Definition of Wireless Machine-to-Machine
Wireless Economics
The Value of the Network
Breaking the Mould
Report Outline
3 The M2M Imperative: Addressing Vertical Markets
The Wireless M2M Advantage
Making $ense With Vertical Solutions
Categorising Wireless M2M Applications
How Do They Differ?
A Promising Future
4 Matching Applications to Technologies
Summary of Wireless Technologies
Relationship with M2M
Wireless LAN
Bluetooth versus ZigBee
RFID
Ultra-Wideband (UWB) versus The Rest
Wide Area Technologies – Cellular and Packet Services
Assessment of Wireless Alternatives
Application versus Technology
5 Vendor Solutions/Strategies
Developing M2M Software
The challenge
Solutions
Integrating M2M With IT
The challenge
Solutions
The Problem of CDPD
The challenge
Solutions
Polling with GPRS?
The challenge
Solutions
The Need to Save Power
The challenge
Solutions
Optimizing WLAN coverage
The challenge
Solutions
Opportunities for Web Services in M2M
Making M2M Pay: Billing/Payment and e-commerce
Meeting the M2M Security Challenge
6 M2M Market Trends
Enablers and Benefits
Enablers
User Segments
Business Benefits
Market Drivers
Summary of M2M Market Trends
7 Wireless M2M Case Studies
Optimizing Vending Support
The situation
The solution
Key benefits
Extending Facilities Management
The situation
The solution
Key benefits
Ensuring Rapid Field Support
The situation
The solution
Key benefits
Monitoring Products In-Transit
The situation
Distribution Process
The solution
Conclusions and key benefits
Cost-Effective Remote Meter Reading
The situation
Key benefits
Information Management in Retail
Project outline
Key benefits
Keeping Track of Individuals
The situation
The solution
Key benefits
8 Analysis of Vertical Markets
Vertical Markets Analysis
Home Networks/Home Automation
The Consumer
Manufacturing Operations
Public Services
Retail Sector
Transport
Utilities
Other Sectors
9 Evaluating the Business Case
More the exception than the rule?
Identifying the Benefits
Quantifying the Benefits - Sample Cost Benefit Analysis
Efficiency Improvements
Volume Improvement
Financial Improvements
Brand Management Improvements
Leveraging M2M Applications
Evaluating Costs and Benefits
The M2M Sales Cycle
ROI: Financial Assessments in Practice
10 Worldwide Wireless M2M Market Forecasts 2003-08
Assumptions and Outline Methodology
M2M Unit Revenues 2003-08
Unit Revenues by Region
Unit Revenues by Industry Sector
Cellular M2M Market Forecasts 2003-08
Cellular Module Sales by Region & Industry
Mobile Network Revenue by Industry Sector
Managed Service Revenue by Industry Sector
WLAN M2M Market Forecasts 2003-08
WLAN M2M Application Development
WLAN M2M Forecast by Region & Industry
WPAN M2M Market Forecasts 2003-08
WPAN M2M Application Development
Bluetooth M2M Forecast by Region
ZigBee M2M Forecast by Region
UWB M2M Forecast by Region
WPAN M2M Revenues by Industry Sector
11 Strategies for Vertical Markets
Keeping the Solution In-house
The Outsource Opportunity
Full Service Provision
Towards a Roadmap to Market
12 Conclusions and Recommendations
Critical Success Factors for Market Players
Challenges for Business Users
Conclusions
Figures
Figure 2.1: Comparison of Networking People versus Machines
Figure 2.2: Report Sections Building the Forecast Methodology
Figure 3.1: Enterprise Wireless Cost-Benefit Trade-off
Figure 3.2: Wireless M2M Characteristics: Selling M2M
Figure 3.3: Segments of the Wireless Data Market
Figure 3.4: Comparison of Service Characteristics
Figure 4.1: Properties of Wireless Technologies
Figure 4.2: Example of Building Automation using ZigBee
Figure 4.3: Where the Current Interest is in UWB
Figure 4.4: Wireless Technologies Range and Data Rate Optimization
Figure 4.5: Matching Technologies and Applications
Figure 5.1: Integrating M2M with IT
Figure 5.2: An Open Standards Approach
Figure 5.3: GPRS Polling Solution
Figure 5.4: Optimizing WLAN Coverage
Figure 5.5: Using Web Services
Figure 5.6: Typical Stages in Billing/Payment System
Figure 5.7: M2M Payment Solution
Figure 6.1: Towards a competitive market
Figure 7.1: Vending Support Solution
Figure 7.2: Facilities Management Solution
Figure 7.3: Ensuring Rapid Field Support
Figure 7.4: Worldwide Logistics Organisation
Figure 7.5: International Distribution Process
Figure 7.6: Cost-Effective Remote Meter Reading Solution
Figure 7.6: System Infrastructure of Retail Solution
Figure 7.7: Keeping Track of Individuals
Figure 8.1: Main Industry Sectors for each Wireless Technology
Figure 9.1: Survey Result: Who Needs a Business Case for Wireless Data?
Figure 9.2 : Illustrative Cost Benefit Analysis
Figure 9.3: Impact of M2M on Enterprise Management
Figure 10.1: WW M2M Unit Revenues by Region 2003-08
Figure 10.2: WW M2M Unit Revenues by Industry Sector 2003-08
Figure 10.3: WW Sales M2M Cellular modules by Region 2003-08
Figure 10.4: WW Sales M2M Cellular modules by Platform 2003-08
Figure 10.5: WW M2M Mobile Network Revenue by Industry Sector 2003-08
Figure 10.6: WW M2M Managed Service Revenue by Industry Sector 2003-08
Figure 10.7: WLAN M2M Application Development 2003-08
Figure 10.8: WW WLAN Units and M2M Element 2003-08
Figure 10.9: WW WLAN M2M Use by Region 2003-08
Figure 10.10: WW WLAN M2M Use by Industry Sector 2003-08
Figure 10.10: WPAN M2M Application Development 2003-08
Figure 10.11: WW Bluetooth Units and M2M Element 2003-08
Figure 10.12: WW Bluetooth M2M Units by Region 2003-08
Figure 10.13: WW ZigBee Units and M2M Element by Region 2003-08
Figure 10.14: WW ZigBee M2M Units by Region 2003-08
Figure 10.15: WW Ultra-Wideband Units and M2M Element 2005-08
Figure 10.16: WW WPAN M2M Unit Revenues by Industry Sector 2003-08
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