Strong Growth Seen for M2M Technology Despite Global Economic Slowdown

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Networked Device Revenues Expected To Exceed $12 bn by 2013. While growth has slowed due to the current global economic slowdown, there remains strong demand for M2M communication and associated services.

Harbor Research, the world's leading market research and consulting experts for Machine-to-Machine (M2M) communication and Smart Services, announces the publication of their 2009-2013 M2M / Pervasive Internet Market Forecast Report. The current report represents the most comprehensive analysis of intelligent device networking in the marketplace. The analysis covers market sizing and the state of adoption of all wireless and wireline technologies across eight key venues (Buildings, Industrial, Energy, Healthcare, Retail, Transportation, Security, and IT) and includes analysis and forecasts for associated Smart Services.

According to the report, Harbor Research forecasts that the number of intelligent device shipments will grow from 73 million units in 2008 and to 430 million units in 2013. Total device revenue is expected to exceed $12 billion by 2013. Much of the growth will be due to the increasing presence of Wireless PAN technology, including ZigBee and other 15.4 related technology, particularly those used in Wireless Sensor Networks (WSNs).

The report notes that during this time adoption will be driven primarily by technological improvements, cross network integration, and advances in product innovation.

Harbor has assessed the impact of the current global economic slowdown, and sees that while growth has slowed below 20% in the short term, there remains strong demand for M2M communication and associated services.

Glen Allmendinger, President of Harbor Research notes, "We're currently on the cusp of a transformation in the marketplace. It is clear there are important fundamental and structural changes are underway in the global economy that favor manufacturers who see beyond incremental product improvements to a future driven by networked experience as a means for differentiation and value creation. The market for connected products and managed services will increasingly be driven by customer interaction innovation. Over the next five years, we're going to see that the true value held in connected devices will shift towards value-added services where there's unheralded potential for revenue generation."

The M2M/Pervasive Internet sector covers the networking of any 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', it is believed 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's report addresses the growing role that the value-added or Smart Services will play in the coming years, noting that consumers are increasingly demanding these services. At the current rate, demand for these services is expected to outstrip supply. Glen Allmendinger continues, "Those companies that have already switched their focus towards Smart Services are already seeing high and sustainable margins. In addition, they've found significant advantages as first movers. Recently, the margins on product manufacturing have been squeezed, and we don't foresee this to let up in the near future. Product manufacturers will have to change the way they do business or suffer dire consequences."

About the Report:

Harbor Research's 2009-2013 M2M / Pervasive Internet Market Forecast Report is the most comprehensive analysis of the intelligent device communications and connected services in the marketplace. The report includes all intelligent networked devices, covering both Fixed (Wireline) and Wireless technologies. Wireline includes Industrial Ethernet, while Wireless includes Cellular (GSM/GPRS/EDGE, CDMA/1xEV-DO, 3G/4G), Satellite, Wireless LAN, Bluetooth, ZigBee (+ other 15.4) and other related technologies that are increasingly being used in the rapidly growing intelligent device networking market. The report also covers the higher-level service revenues derived through intelligent device networking, including both Network Carrier Services and Managed Services.

For more information about this report, please contact Jonathan Berman at jberman(at) or Mark Ritorto at mritorto(at)

About Harbor Research:

For over 20 years, Harbor Research Inc. has been providing consulting and research services to leading product manufacturers, services organizations and core technology clients. Harbor's market research and consulting services are organized around emergent and disruptive opportunities, with a unique focus on the impact of the Pervasive Internet--the use of the Internet to accomplish global device networking that will revolutionize business by unleashing entirely new modes of system optimization, customer relationships, and service delivery - what we call "Smart Services."

For more information about Harbor Research, please visit


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