Machine to Machine (M2M) - Strong Growth of Wireless M2M and Impact of RFID



Table of Contents

Published June 2005. 140 pages

1.     Introduction                                                                                                                 13

1.1. Report’s objectives                                                                                     13

1.2. Definition                                                                                                       13

2.     M2M technology                                                                                                         15

2.1. A brief history                                                                                                15

2.2. Operating principles                                                                                   16

2.2.1.      How it works                                                                                 16

2.2.2.      M2M architecture                                                                         17

2.3. Data capture                                                                                                 19

2.4. How the module works                                                                              20

2.5. Data communication                                                                                  20

2.5.1.      Cellular solutions                                                                        21

2.5.2.      Non cellular solutions                                                                25

2.5.3.      Choosing between wireless technologies                            27

2.5.4.      Wireless IP adressing                                                               28

3.     The development of RFID and its impact on M2M                                              29

3.1. RFID’s operating principles                                                                      29

3.1.1.      Definition                                                                                       29

3.1.2.      RFID architecture                                                                        29

3.1.3.      RFID tag features                                                                        30

3.1.4.      Frequencies                                                                                 31

3.1.5.      Deployment of RFID tags                                                          32

3.2. Standardization and regulation                                                                33

3.2.1.      Frequency regulation                                                                  33

3.2.2.      Data standards                                                                            33

3.3. Growth of the UHF RFID market                                                               35

3.3.1.      Business model for passive UHF tags                                  35

3.3.2.      UHF RFID experiments                                                              37

3.3.3.      RFID markets                                                                               40

3.4. RFID’s impact on M2M and telecom industries                                    43

3.4.1.      RFID and M2M                                                                             43

3.4.2.      Business applications using ruggedized PDA                     44

3.4.3.      Consumer and NFC applications                                            45

4.     Analysis of the M2M market                                                                                    49

4.1. M2M applications and markets                                                                49

4.1.1.      Segmentation factors                                                                 49

4.1.2.      Main uses of M2M                                                                       50

4.2. Value proposal                                                                                            53

4.2.1.      Development factors                                                                  53

4.2.2.      Properties of M2M                                                                       53

4.2.3.      Customer benefits                                                                      55

4.3. Growth perspectives                                                                                   57

4.3.1.      Drivers                                                                                           57

4.3.2.      Challenges                                                                                   60

4.3.3.      Growth of the M2M market                                                         63

4.4. Market forecasts                                                                                          66

5.     Player strategies                                                                                                        71

5.1. Player positioning                                                                                       71

5.1.1.      Value chain                                                                                   71

5.1.2.      Alliances                                                                                       72

5.1.3.      Business models                                                                       73

5.2. Modem and module Manufacturers                                                        74

5.2.1.      Module segmentation                                                                74

5.2.2.      Opportunities and developments                                            75

5.2.3.      Leading players                                                                           76

Nokia                                                                                                      78

Siemens                                                                                                79

Sony-Ericsson                                                                                      80

Wavecom                                                                                               81

Skybility                                                                                                  82

Coronis Systems                                                                                83

5.3. Mobile operators                                                                                         84

5.3.1.      Opportunities and developments                                            84

5.3.2.      M2M cellular growth strategies                                                 85

5.3.3.      Leading players                                                                           87

Orange                                                                                                  88

T-Mobile                                                                                                90

TIM                                                                                                          91

Telefónica                                                                                             92

Vodafone                                                                                               93

BT                                                                                                           94

NTT DoCoMo                                                                                       95

Sprint PCS                                                                                            96

Cingular Wireless                                                                               97

Velocita Wireless                                                                                98

5.3.4.      M2M MVNOs                                                                                 99

Kore Wireless                                                                                      101

Wireless Maingate                                                                              102

Aeris.net                                                                                                103

Wyless                                                                                                   104

5.4. Software services suppliers                                                                     105

5.4.1.      M2M’s specific properties                                                          105

5.4.2.      The solutions’ features                                                              105

5.4.3.      Player segmentation                                                                  105

5.4.4.      Leading players                                                                           106

5.5. Integrated solutions and services                                                           106

5.5.1.      Positioning                                                                                   106

5.5.2.      Leading players                                                                           107

SensorLogic                                                                                         108

NPhase                                                                                                 109

Axeda                                                                                                     110

Sybase                                                                                                  111

IBM                                                                                                         112

Opto 22                                                                                                  113

Lantronix                                                                                               114

Comtech                                                                                               115

Vianet                                                                                                     116

Numerex                                                                                               117

6.     Vertical M2M markets                                                                                              119

6.1. Transportation                                                                                             119

6.1.1.      Fleet management                                                                     119

6.1.2.      Telematics                                                                                    120

6.1.3.      Case study: Mercedes Benz (Germany)                                 121

6.1.4.      Case study: UPM-Kymmene Metsa (Finland)                       122

6.2. Security                                                                                                          123

6.2.1.      Case study: Securitas Direct (Europe)                                   124

6.3. Payment solutions for commerce                                                            125

6.3.1.      Point of sale                                                                                 125

6.3.2.      Automatic payment systems                                                     126

6.3.3.      Case study: Crédit Lyonnais/TNS (France)                           126

6.3.4.      Case study: Exxon Mobile (USA)                                              127

6.4. Utilities                                                                                                          127

6.4.1.      Meter readings                                                                             127

6.4.2.      Case study: Enel (Italy)                                                              129

6.5. Commerce : Vending Machines                                                               130

6.5.1.      Case study: Frito-Lay (USA)                                                      131

6.6. Automobile insurance                                                                                132

6.6.1.      Case study: Aviva (The UK)                                                       132

6.7. Professional services                                                                                133

6.7.1.      Energy management                                                                  133

6.7.2.      Manufacturers & preventative maintenance                           134

6.7.3.      Case study: Mitsubishi Electric (Europe)                               135

6.8. Healthcare                                                                                                    136

6.8.1.      Case study: CardioNet (US)                                                     137

6.9. Supply and distribution chain                                                                   137

6.9.1.      Case study: Metro (Germany)                                                   138

6.10.     Other markets                                                                                        139

6.10.1.    Manufacturing                                                                              139

6.10.2.    Home automation                                                                       139



List of Tables, Figures and Boxes
Tables

Table 1:

Comparison of SCADA and wireless M2M technologies

15

Table 2:

Comparison of the features of the leading cellular M2M solutions

24

Table 3:

Properties of passive RFID tags

31

Table 4:

Vertical examples of M2M equipment monitoring markets

50

Table 5:

Vertical examples of M2M surveillance markets

50

Table 6:

Vertical examples of M2M object traceability markets

51

Table 7:

Vertical examples of M2M fleet management markets

51

Table 8:

Vertical examples of M2M monetics markets

51

Table 9:

Vertical examples of M2M remote control markets

52

Table 10:

Vertical examples of M2M information search markets

52

Table 11:

M2M’s main drivers and challenges

57

Table 12:

Number of communicating machines in 2010 (million units)

66

Table 13:

Potential communicating device market in Western Europe in 2005 (million units)

66

Table 14:

M2M in figures for a selection of players

67

Table 15:

M2M revenues (billion EUR)

68

Table 16:

Mobile operators’ M2M revenues (billion EUR)

69

Table 17:

Principal M2M alliances

72

Table 18:

Technological criteria for modem segmentation

74

Table 19:

M2M module suppliers

77

Table 20:

Comparison of key elements in classic and M2M operators’ business models

84

Table 21:

Leading MVNOs on the M2M market

100

Table 22:

Leading M2M software solution vendors

106

Figures

Figure 1:

Architecture of an M2M solution

17

Figure 2:

Value-added of the Gateway and Middleware components

19

Figure 3:

Wireless technologies used in M2M

21

Figure 4:

Wireless Network Architecture of WLAN and WPAN

26

Figure 5:

RFID architecture

30

Figure 6:

EPC numbering

34

Figure 7:

Change in the cost of UHF RFID tags (In USD)

35

Figure 8:

RFID costing model

36

Figure 9:

Savings generated by Wal-Mart with the implementation of RFID

37

Figure 10:

RFID deployment in the retail industry

39

Figure 11:

The RFID market between 2003 and 2010 (billion USD)

41

Figure 12:

NFC Peer-to-Peer configuration

46

Figure 13:

FeliCa architecture

47

Figure 14 :

M2M’s impact on the network in terms of traffic

55

Figure 15:

M2M’s development by vertical industry

64

Figure 16:

Growth of the number of communicating objects, including tags and sensors (billion units)

67

Figure 17:

Expected growth of the M2M market

68

Figure 18:

M2M’s expanded value chain

71

Figure 19:

Change in the average price of a GSM/GPRS modem (in USD)

74

Figure 20:

Hardware manufacturers’ positioning on the value chain

75

Figure 21:

Leading cellular M2M modem suppliers’ positioning

76

Figure 22:

Breakdown of mobile operators’ M2M revenues, by application (2004)

86

Figure 23:

Leading mobile operators’ positioning on the M2M market

87

Figure 24:

MVNO and MVNE positioning on the M2M market

100

Figure 25:

The TELEAID system

122

Figure 26:

Architecture of the Sonera dispatching solution

122

Figure 27:

Process used by the forestry industry

123

Figure 28:

Comparison of meter readings with and without AMR

128

Figure 29:

Retail applications

138

Boxes

Box 1:

Marks & Spencers

39

Box 2:

Nokia Mobile RFID Kit

44

Box 3:

QR Code

45

Box 4:

Felica and NTT DoCoMo

47




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