With a growing awareness of the operational benefits and efficiency savings of real-time data monitoring, wireless telemetry (or AMR – Automated Meter Reading) will lead the evolving growth in M2M markets over the coming three years and beyond, according to industry analysts Juniper Research. Juniper claimed that revenues are set to rise from $11.6 billion in 2006 to $25.3 billion by 2009.
The substantial rise in revenues — expected to quadruple by 2011 to $40.8 billion — will contrast with limited growth in telematics from $6.4 billion to $11 billion in the same period — owing to current widespread usage in many commercial vehicles due to legislation, says Juniper. Other outlets, including security and surveillance, highway and public transport signs, and health care will show encouraging signs rising from a cumulative low of $2 billion in 2006 to over $9 billion by 2009.
Dr Therese Cory, report author, believes the figures represent great potential for real-time electronic data to transform enterprise performance and efficiency.
“The utility industry is a prime example of how, by networking and remotely monitoring machines, data can be analysed and collective behaviour understood in new ways.
“For example a real-time unified view of how power is used will help safeguard this increasingly rare resource. And what can be measured can be controlled, and ultimately optimised.”
To date, however, growth has been restrained. M2M projects are notoriously long-term investments taking years to initiate, due to large budgets, the length of the decision making process, and time needed to put together a custom solution from several supply chain players.
Despite these hurdles, Cory insists the signs are positive.
“Earlier in 2006 the Italian energy company Enel completed an installation of 30 million AMRs. The cumulative cost of this project up to 2005 was $4.48 billion. In the same year, only six million meters were providing readings, increasing revenues by $1 billion.
“Certainly, making the business case will become easier as more companies bite the bullet and provide success stories for others to learn from.”