From pets to Porsches to power, it’s getting more common every day to see remote assets that are monitored, controlled, or enhanced in some way by machine-to-machine (M2M) communication technology. The common denominator between these different types of applications is M2M’s core value proposition, which centers around reducing costs, improving efficiency, increasing supplemental revenue opportunities, and supporting industry-specific initiatives.

Defining M2M And Its Applications

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No matter how you apply M2M technology, the concept is the same—enabling real-time data communication between remote machines and central management applications to enhance the value of the remote device to its user. Within the basic structure of an M2M application, there are many wired and wireless communications options. But the real growth trend lies within embedded cellular M2M, which enables rapid and secure data transfer via GSM, UMTS, or CDMA networks.

The exciting thing about M2M is that the possibilities are endless in terms of what new innovative devices and applications can be developed that leverage M2M technology. Historically, M2M has focused on vertical market applications, like fleet management, remote monitoring, and utility meter reading. However, emerging applications such as pay-as-you-drive auto insurance, Smart Grid automation, e-readers, and connected personal navigation devices (PNDs) are driving innovation and growth within M2M.

The many benefits created from M2M technology are among the reasons why independent analyst firms such as ABI Research estimate that the number of cellular M2M connections will triple by 2014 to 75 million. On the cellular service provider side, service value-adds generated an estimated $21 billion in revenue worldwide in 2006. ABI expects this to grow to $189 billion in 2012, which is an annual growth rate of 43%.¹

The Telit Wireless Solutions GE865-QUAD complete four-band GSM/GPRS cell phone can achieve up to about 100 kbits/s in embedded wireless applications. It measures only 22 by 22 by 3 mm.

Contributing to the expected growth of M2M is the recent embrace of the industry by major cellular carriers around the world, especially in the U.S. Facing the prospect of low growth rates in their core voice business, operators such as AT&T, Verizon, Sprint, and T-Mobile have recognized the vast market potential of M2M embedded cellular-based consumer electronics, such as e-readers, digital photo frames, netbooks, home security monitoring, and personal navigation devices, which can drive additional data service revenue. Working with device manufacturers and content providers, the cellular carriers have introduced new business models and pricing plans to support innovation.

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