News

Smart machines and connected objects

11/06/2008
From M2M to the invisible Internet of things



This report addresses the next major disruption for the Internet, coming from the potential connection of billions of machines (with M2M) and trillions of objects (with RFID and the Internet of things). It assesses the key technologies to accelerate such a development, the applications that are or will be the most relevant in a connected mode and the early positioning of the industry players on this promising market.

"There are countless opportunities in the markets of both M2M and the Internet of Things" says Vincent BONNEAU, Project manager of this report, "initially in terms of cost reduction, and then through the emergence of new services, especially around improved customer service."

Internet is gaining a new life with billions of machines connected
The Machine-to-Machine (M2M) revolution has meant that machines in communication with each other become just a bit more intelligent. Humans are no longer alone in being able to connect to the Internet: now any kind of machine can do so.

• It is a sizeable market indeed, with more than 2 billion potential machines in the world, 630 million of them in Europe. Thus far, it has developed primarily in the fields of internal, wired applications, but the most dynamic surge will come from wireless M2M where cellular, satellite and other solutions are opening up new, otherwise impossible opportunities for roaming modes and in open environments.

• In 2007, the cellular M2M market was worth EUR 6 billion in Western Europe, comprising more than 11 million active modules. Its rapid growth rate will sweep it to 61 million modules by 2012, worth some EUR 38.5 billion.

• The market will develop in large-scale vertical segments, once the proper sector organisations have been put in place (standardisation, ecosystem).