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February 8, 2010

Embedded Mobile, M2M device revenues to reach $18.9bn by 2014, says Juniper Research

Consumer and commercial telematics, in vehicle applications to be major contributors

By CBR Staff Writer

Revenues from mobile connected M2M and embedded devices will rise to $18.9bn globally by 2014, with consumer and commercial telematics and in vehicle applications accounting for over a third of the total, according to a report by Juniper Research.

According to the study, mobile connected buildings, driven by security needs, and utility metering, driven by regulatory initiatives in Europe and economic stimulus funds in the US are the other areas that will contribute significantly to M2M revenues.

In addition, the Embedded Mobile and M2M research also found that operators are starting to view the market for embedded devices and M2M as a market in its own right, rather than an add-on to existing activity. There is a growing trend for SIM cards to be integrated directly into devices, rather than provisioned at a later date in the aftermarket.

The firm said that operators need to consider reappraising accounting practices and form alliances and partnerships with M2M specialists to effectively address the market for embedded devices and M2M.

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Anthony Cox, senior analyst at Juniper Research, said: “Despite the ongoing downturn in the automotive sector in developed markets, the most promising M2M area remains the automotive industry.

“There has been a slow-down in the adoption of telematics because new car sales have stalled, but we anticipate that by 2014 in developed markets over half of new vehicles will be sold with telematics devices using cellular connections.”

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