Big opportunity for M2M technology

Big opportunity for M2M technology
By Phil Collins, Telit Wireless Solutions

The concept of M2M (machine to machine) may have been around for many years, yet it is still at the bottom of the growth curve. However, this is changing as GSM/GPRS-based mobile systems meet the rapidly growing data connection needs of a diverse range of industry sectors demanding greater speed, cost savings and accuracy.

Momentum is building at a number of levels, with growing economic, technological and regulatory pressures. And the seemingly relentless growth in data is likely to see such data connectivity rival the number of voice connections over the next two years.

There are several factors which, until recently, came together to restrict M2M’s impact.

Not unusually for a new and radical technology change, there has been a continuing need to educate the market. End-users were comfortable with fixed wire-based modems using the PSTN and, in part, a leap of faith was required to give the confidence to send mission-critical data securely and with certainty over the radio waves.

This resistance was emphasised by the fact the existing technology could be managed easily in-house, whereas wireless technology brought with it a new way of working and a new language to be learned.

Today a point at which the technology is able, cost-effectively, to deliver the speed and quality of data transmission which end-users require has been reached.

This has become increasingly important, for example in crime prevention. The ability to transmit data over a high-speed link from CCTV cameras via a wireless 3G network will significantly improve delivery of high-quality images.

Key markets
Markets offering particular potential for growth fall into two broad categories: the ability to connect machines to other machines, such as in remote production environments; and connecting machines to a central management application.
The latter includes, for example, the future trend of ‘pay as you drive’ for privately owned cars or enabling vending machines to report stock status.

The telematics and security markets have to-date seen the greatest penetration of GSM/GPRS-based systems and there is growing interest in such areas as remote meter reading. These markets in particular are responding strongly as bandwidths increase and the cost of installations and call tariffs come down.

Automated meter reading
Remote meter reading is an area where lower unit costs have created a real market opportunity for M2M.

Historically, although the electronics of the meter itself could be designed and manufactured relatively cheaply, the cost of installing a fixed-wire PSTN line was exorbitantly expensive.

This problem is removed by using a GSM/GPRS-based communications system, which allows constant communication between the smart meter and the central reporting system.

Additional functionality allows energy companies to monitor and analyse customers’ consumption habits. And, looking ahead, the availability of bi-directional communications into the home together with greater energy management will provide further opportunities for vendors to differentiate themselves.

Tracking and tracing
One of the greatest opportunities for M2M technology lies in security. In the area of RFID (radio frequency identification) tracking technology, for example, ID chips attached to pallets or products can be read to monitor progress through the distribution process.

Issues of personal safety and the ability to locate people have also become higher profile in recent years and the availability of pocket-sized, easy-to-use and inexpensive tracking systems allows parents, carers and employers to keep a watch over children, patients and employees.

Partnering with the right provider
Choosing a suitable partner here is especially important. In an environment in which falling unit costs enabled by advances in technology are making M2M available to new markets, it is a given that any system must be price-competitive.

Yet in such a fast-changing market, it is equally important that the supplier can meet tomorrow’s needs with a strong technology roadmap.

Further, with many customers having no previous GSM/GPRS experience and possibly entering their respective markets for the first time, it is critical that customer support is responsive and flexible, both commercially and technically.

The system must be business scalable, with product families enabling integrators to move easily between products without having to re-develop applications in order to address such issues as an increase in mass volume production.

It must also be easy to integrate, with product and service offerings designed to accelerate time to market and improve the overall development experience.

And, equally importantly, the chosen system should shield integrators and M2M adopters from unnecessary revisions of application, for example, due to ever-changing requirements on the wireless M2M device by operators or regulatory bodies.




URL: http://www.electronicsweekly.com/Articles/2007/12/17/42817/big+opportunity+for+m2m+technology.htm

© 2007 Reed Business Information Limited.