The European Energy Efficiency Directive and eCall legislations will pave way for their growth
Shipments of cellular M2M module will grow from 76 million in 2012 to 104 million in 2013, according to a study by research firm Strategy Analytics.
The report, entitled ‘M2M Devices Annual Sales by Air Interface, Region by Industry Vertical’ says legislations, including the European Energy Efficiency Directive and eCall, will be a driver for escalating use of M2M in segments such as smart metering and passenger vehicle crash protection.
These regulatory changes will have a major impact on the M2M market, causing the number of modules in operation to increase to billions in 2020, from the present number of millions.
Strategy Analytics M2M research director and author of the study Andrew Brown said as the lifecycle of many M2M devices exceed five years and many trials to deployments happen in phases, annual growth of module shipments tends to be modest annually,
"Once an M2M module is deployed, it will remain in place for many years, which supports the growing emphasis on module software to link existing modules to connectivity (CDPs) and service platforms (SDPs)," added Brown.
According to Strategy Analytics Global Wireless Practice vice president David Kerr smart Grid projects are showing an increase in many parts of the globe, which will fuel M2M growth.
"Delays to eCall and continued debate around whether service delivery should happen via embedded modules or smartphones in the vehicle will limit growth for Telematics in the immediate term but not affect a good prognosis for growth in the longer term," Kerr said.