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Diverse Industrial Applications Drive the World Satellite Machine-to-Machine Communications Market - Worldwide, wireless, wireline, and satellite networks developed significantly in the last twenty years, setting the stage for machine-to-machine (M2M) applications and equipment to utilize these existing networks
Diverse Industrial Applications Drive the World Satellite Machine-to-Machine Communications Market

 

PRZOOM - /newswire/ - Mountain View, CA, United States, 2010/07/29 - Worldwide, wireless, wireline, and satellite networks developed significantly in the last twenty years, setting the stage for machine-to-machine (M2M) applications and equipment to utilize these existing networks.

   
 
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Used for logistical tracking, telemetry, remote monitoring, geo fencing, security, and scientific monitoring, M2M communications provide benefits for industries ranging from agriculture to retail, driving the satellite M2M industry over the next five to seven years.

The world satellite M2M communications market is currently experiencing exponential growth, as companies seek to raise productivity while reducing costs. M2M hardware and equipment have continuously reduced in both size and cost in the last five years.

New analysis from Frost & Sullivan (space.frost.com), World Satellite Machine-to-Machine Communications Market, finds that the market earned revenues of $726 million in 2009 and estimates this to reach $1.90 billion in 2016. The United States dominates the world satellite M2M communications market, with 62 per cent market share since its enterprises have the capital to implement M2M. The Asia-Pacific region is expected to experience maximum growth in terms of regional share in the long term.

If you are interested in more information on this study, please send an email to Jake Wengroff, Corporate Communications, at jake.wengroff[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state, and country.

"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," says Frost & Sullivan Research Analyst Daniel Longfield. "Reduced equipment costs further accelerated opportunities by helping in the monitoring and tracking of more assets."

Globally, there are over one billion personal computers, four billion wireless phones, and one billion wireline phones in service. There are only about one hundred million dedicated M2M devices in service, but reversing those numbers would be ideal for the long term. However, the escalating costs of bandwidth and equipment will restrain market growth in the short term. Satellite hardware and airtime are substantially more expensive than that of their terrestrial counterparts.

"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," explains Longfield. "Additionally, hardware prices for satellite M2M equipment range from $74 to $3,200."

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 materialize in the vertical markets.

"Tracking of mobile assets and transportation monitoring are becoming much more cost-effective for end users due to the reduction in the cost of M2M equipment," concludes Longfield.

World Satellite Machine-to-Machine Communications Market is part of the Space Communications Growth Partnership Services program, which also includes research in the following markets: World U.S. Military Satellite Communications on the Move Markets, World Satellite VSAT Markets, World Satellite Services Markets in the Oil and Gas Industry, African Transponder Market Demand Outlook, and Maritime Market Study - Satellite Communications, among others. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

World Satellite Machine-to-Machine Communications Market / N773

 
 
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Diverse Industrial Applications Drive the World Satellite Machine-to-Machine Communications Market

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