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M2M-Building a Connected World
Juniper Research forecasts that there will be a total of 400 million connected devices in service across all industry segments by the end of the forecast period in 2012. From a sector perspective, the last 18 months have seen significant take up of embedded consumer electronics devices, specifically eReaders, a trend which is expected to continue over the forecast period. In addition consumer and commercial telemantics will show increasing device numbers as automotive manufacturers aim to embrace embedded connectivity in the next five years in a new vehicle sales.
While the reality of the M2M market may have fallen short of expectations since its early days, in the 2011 to 2012 period Juniper Research has observed an increasingly coherent approach to the market of both operators and M2M-enablers. On one hand, the interfaces built by companies to manage devices are becoming more sophisticated as the power of the Internet and the cloud are leveraged to their full extent. On the other hand, the automation of delivery and control means that the costs associated with M2M roll outs are reduced, improving the economic viability of M2M projects.
This coincides with a reappraisal by operators of how M2M will deliver revenue, away from standard revenue-per-device towards a revenue model which is defined by the service that is delivered. Both operators and M2M enablers now see the M2M market as a market in its own right, with its own characteristics with respect to revenue generation.
Juniper Research believes that the combination of cloud-based infrastructure and the introduction of technologies such as Bluetooth low-power at an affordable cost will give the market further impetus, while the acquisition route is strengthening some of the most respected M2M companies, affording them an increased level of sophistication.
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