Diverse Industrial Applications Drive the World Satellite Machine-to-Machine Communications Market

Worldwide, wireless, wireline, and satellite networks developed significantly in the last twenty years, setting the stage for machine-to-machine (M2M) applications and equipment to utilize these existing networks. Used for logistical tracking, telemetry, remote monitoring, geo fencing, security, and scientific monitoring, M2M communications provide benefits for industries ranging from agriculture to retail, driving the satellite M2M industry over the next five to seven years.
 

 
The world satellite M2M communications market is currently experiencing exponential growth, as companies seek to raise productivity while reducing costs. M2M hardware and equipment have continuously reduced in both size and cost in the last five years.
 
New analysis from Frost & Sullivan, World Satellite Machine-to-Machine Communications Market, finds that the market earned revenues of $726 million in 2009 and estimates this to reach $1.90 billion in 2016. The United States dominates the world satellite M2M communications market, with 62 percent market share since its enterprises have the capital to implement M2M. The Asia-Pacific region is expected to experience maximum growth in terms of regional share in the long term.
 
If you are interested in more information on this study, please send an e-mail to Jake Wengroff, Corporate Communications, at jake.wengroff@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state, and country.
 
Globally, there are over one billion personal computers, four billion wireless phones, and one billion wireline phones in service. There are only about one hundred million dedicated M2M devices in service, but reversing those numbers would be ideal for the long term. However, the escalating costs of bandwidth and equipment will restrain market growth in the short term. Satellite hardware and airtime are substantially more expensive than that of their terrestrial counterparts.
 
"The average revenue per user among cellular operators is in the range of $6 to $7 per month, whereas satellite companies are in the $24 per month range," explains Longfield. "Additionally, hardware prices for satellite M2M equipment range from $74 to $3,200."
 
As hardware sales grow, economies of scale will develop and contribute to reductions in unit prices for M2M equipment. As prices fall for M2M equipment, more opportunities will materialize in the vertical markets.