Gov't moves to shape M2M cellular modules market

Staff writer
05 Jul 2012
00:00

Government directives, along with other dynamics in the market such as dropping module prices, will propel annual module shipments for machine-to-machine (M2M) communications to more than 118 million units by 2016. IMS Research, in its latest edition of a report titled “World Market for Cellular Modules in M2M Communications,” forecasts that the greatest impact of these government regulations will be in the automotive sector.

Separate mandates in Brazil, Russia and the Europe Union are expected to require that automobiles have cellular connectivity in upcoming years. In the Europe Union’s eCall and Russia’s ERA GLONASS initiatives, the inclusion of cellular technology is intended to support mandatory emergency call systems that allow for immediate notifications to emergency services when an automobile is involved in an accident. In Brazil’s Contran 245, cellular technology will be required to assist in the tracking and recovery of stolen vehicles.

“These government initiatives are intended to address different issues and concerns, and demonstrate the wide variety of uses that cellular technology can have in the automotive market,” said senior analyst Josh Builta. “It is expected that these regulations, along with consumer demand for connected infotainment systems will result in strong growth in shipments of cellular modules to the automotive market in upcoming years.”

IMS Research expects that if these respective programs achieve their intended results, it could spur governments in other countries to enact similar legislation. The company forecasts that in 2016, more than 45.4 million cellular modules will be shipped to the automotive sector, representing about 38% of that year’s total shipments.

Great potential in healthcare

The firm also believes that government initiatives aimed at reducing cost and improving efficiency could eventually drive uptake of cellular modules in other markets such as healthcare. In many countries, governments are already beginning to look at home-based remote monitoring devices that frequently incorporate cellular technology as a way to maintain high standards of care in a cost-effective manner.

Given the aging population and healthcare cost concerns, it is not surprising the US government has been at the forefront of these efforts with legislation such as the Fostering Independence through the Technology Act of 2011, the Veterans’ Telehealth and Telemedicine Improvement Act and California’s Telehealth Advancement Act.

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