ABI: Service Provider Specialization Helps Advance M2M Market
December 29, 2007 // Published as a news service by IHS
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A key challenge to growth in the cellular machine-to-machine (M2M) market has been the complexity of application development.
According to ABI Research, that's changing as the market's service providers have introduced application-specific tools designed to ease the development burden and help increase overall M2M market growth.
"The introduction of application-specific tools - such as eCallDirect from Aeris for telematics applications, Jasper Wireless' secure SIM [subscriber identity module] for POS [point of sale] applications and Kore Telematics' embedded GSM [global system for mobile communication] voice services for security systems and other applications - show that service providers are stepping up to the challenge of facilitating M2M application development," said Sam Lucero, senior analyst with ABI Research.
Analysts said these recent developments are a natural outgrowth of the increased M2M service specialization, which is the fundamental strategy of both mobile virtual network operators (MVNOs) and, more recently, M2M mobile operators within the M2M market.
"We can expect this focus on specialization and better enablement of M2M applications to increase in the coming months and years," said Lucero.
"These efforts will be complemented by players at other levels of the value chain, such as Wavecom and Telit with their embeddable SIM technology, and, in the near future, with hosted application platforms that should bring a true web 2.0 feel to the M2M world. All of these developments should help to ensure that the market for M2M services enjoys a healthy rate of growth over the next five years."
Source: ABI Research.