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Industry Research Featured Article

January 23, 2007

Wireless Telemetry to Reach $25.3bn by 2009

According to industry analysts Juniper Research, wireless telemetry (or AMR - Automated Meter Reading) will lead the evolving growth in M2M markets over the coming 3 years and beyond.

With businesses waking up to the operational benefits and efficiency savings of real-time data monitoring, the revenues will rise from $11.6bn in 2006 to $25.3bn by 2009.

The substantial rise in revenues is expected to quadruple by 2011 to $40.8bn. Due to current widespread usage in many commercial vehicles due to legislation, this will contrast with limited growth in telematics from $6.4bn to $11bn in the same period.

The other outlets such as security and surveillance, highway and public transport signs, and health care will show encouraging signs. From a cumulative low of $2bn in 2006 they will rise to over $9bn by 2009.

“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,” said Dr. Therese Cory, report author in a press release.

She continued: “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.”

Dr. Cory said that the figures represent a great potential for real-time electronic data to transform enterprise performance and efficiency. However, the growth has been restrained to date.

The M2M projects are extremely long-term investments and take years to initiate. This is 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.

According to Therese the signs are positive despite these hurdles. The Italian energy company Enel completed an installation of 30 million AMRs in 2006. While the cumulative cost of this project up to 2005 was $4.48bn, in the same year, only 6 million meters were providing readings, increasing revenues by $1bn.

“Similar cost and benefit patterns are expected across the whole of the wireless AMR segment. Certainly, making the business case will become easier as more companies bite the bullet and provide success stories for others to learn from,” she concluded.

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Anuradha Shukla is a contributing editor for TMCnet, covering call centers, CRM and information technology. To see more of her articles, please visit her columnist page.


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