Harbor Research Announces Release of New M2M/Pervasive Internet Market Forecast

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Networked Device Revenues to exceed $10bn by 2011. For the first time, these figures include all M2M networking devices, covering both Fixed (Wireline) and Wireless technologies. Wireline includes Industrial Ethernet, while Wireless includes Cellular (GSM/GPRS/EDGE, CDMA/1xEV-DO, 3G), Satellite, Wireless LAN, Bluetooth, ZigBee (+ other 15.4) and other related technologies that are increasingly being used in the rapidly growing M2M market.

M2M (machine to machine) device shipment revenues are expected to grow at an annualized rate of 27% over the next 5 years, reaching $10.6b worldwide by 2011, according to figures just published by Harbor Research Inc., the world’s leading provider of strategic consulting and research services for the fast-developing M2M/Pervasive Internet sector.

For the first time, these figures include all M2M networking devices, covering both Fixed (Wireline) and Wireless technologies. Wireline includes Industrial Ethernet, while Wireless includes Cellular (GSM/GPRS/EDGE, CDMA/1xEV-DO, 3G), Satellite, Wireless LAN, Bluetooth, ZigBee (+ other 15.4) and other related technologies that are increasingly being used in the rapidly growing M2M market.

According to Harbor Research, the device unit counts will grow considerably faster than revenue – at an annualized rate of over 64% including devices like ZigBee and other IEEE802.15.4, or closer to 32% without these. “We see device unit shipment growth remaining stable at more than 30% per annum for all device categories over the next five years,” said Robin Duke-Woolley, a Principal of Harbor Research Inc. and Managing Director of Harbor Research Europe. “More significantly, these devices will enable new service revenues of over $60bn in the period.”    

Harbor Research sees this growth occurring in 8 principal market Venues – Buildings, Energy, Industrial, Medical, Retail, Transportation, Security/Public Safety and Consumer/Professional.

The firm has recently redesigned its forecast methodology to more accurately monitor both Wireline and Wireless networking device technologies in all regions worldwide and by major application groups within these key Venues. The report also covers the higher level service revenues derived through intelligent device networking, including both Network related – of particular interest to telecom carriers, mobile operators (MNOs) and virtual network operators (VNOs, MVNOs) – and Managed Service related – of particular interest to adopters, service providers, solution providers, integrators and VARs.

This work has come together as a direct result of Harbor’s acquisition last year of another leading US-based M2M research company Wireless Data Research Group (WDRG) and a subsequent merger with the leading Europe-based M2M research company e-principles.

“We are now beginning to see attention within the M2M market shift dramatically towards higher level, remote smart services and away from the technology underpinnings,” commented Glen Allmendinger, President of Harbor Research Inc. “The technology is a vital enabler and now stable. M2M market development is now increasingly about business justification, addressing the implementation issues and service innovation.”

The M2M/Pervasive Internet sector is a highly diverse component of the global economy that covers the networking of potentially any manufactured product that has some form of internal processing or sensing. It is increasingly being regarded as a key growth sector over the coming decade. Often described as the ‘next wave of the Internet’, Harbor Research believes that the networking of such products will open up vast new opportunities for growth in added-value “smart services” for product manufacturers and will radically change the dynamics of many industry sectors. Harbor is already engaged with many product manufacturers to identify and help develop opportunities for such new smart services arising from manufactured products across many diverse sectors.

A top-level view of Harbor’s new worldwide forecast was featured at the company’s Smart Services Forum that took place at this year’s Hannover Fair in Germany April 24-28. The Hannover Fair is the world’s largest show dedicated to industrial automation, process and control and last year drew nearly 250,000 visitors from across the globe. Harbor’s Smart Services Forum was the first gathering to focus exclusively on the smart service opportunities arising out of the M2M/Pervasive Internet market development.

More details at http://www.harborresearch.com

Harbor Research, Inc. has been providing strategic consulting and research services to clients for more than twenty years. With a reputation as specialists in understanding emergent and disruptive opportunities in high technology, Harbor Research works with clients who seek to establish strategic advantage in changing markets. Harbor Research’s ground-breaking Pervasive Internet research is widely regarded as the definitive work on the business impact of integrating networked devices into business processes.

Headquartered in San Francisco, the company also has offices in Boston and London, UK.

Contact Information:                                                                                

Marc Kriessmann

Harbor Research, Inc.

415.615.9400 x23

415.615.0454 fax

http://www.harborresearch.com

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