Government regulations a key piece of the cellular M2M puzzle

Government regulations and initiatives will be a key factor in driving the market for cellular modules for used in machine-to machine (M2M) communications.

05/31/2012


Government regulations and initiatives will be a key factor in driving the market for cellular modules for used in machine-to machine (M2M) communications, according to a just released report from IMS Research (recently acquired by IHS Inc.). IMS Research forecasts that government directives along with other dynamics in the market, most notably dropping module prices, will propel annual module shipments for M2M communications to more than 118 million units by 2016.

According to The World Market for Cellular Modules in M2M Communications, the greatest impact of these government regulations will be in the automotive sector. Separate mandates in Brazil, Russia and the Europe Union are expected to require that automobiles have cellular connectivity in upcoming years. In the Europe Union’s eCall and Russia’s ERA GLONASS initiatives, the inclusion of cellular technology is intended to support mandatory emergency call systems, allowing for immediate notifications to emergency services when an automobile is involved in an accident. In Brazil’s ‘Contran 245,’ cellular technology will be required to assist in the tracking and recovery of stolen vehicles.

“These government initiatives are intended to address different issues and concerns, and demonstrate the wide variety of uses that cellular technology can have in the automotive market,” said Josh Builta, senior analyst at IMS Research. “It is expected that these regulations, along with consumer demand for connected infotainment systems will result in strong growth in shipments of cellular modules to the automotive market in upcoming years. Furthermore, if these respective programs achieve their intended results, it could spur governments in other countries to enact similar legislation.” IMS Research forecasts that in 2016 more than 45.4 million cellular modules will be shipped to the automotive sector, representing about 38% of that year’s total cellular module shipments.  

IMS Research believes that government initiatives aimed at reducing cost and improving efficiency could also eventually drive uptake of cellular modules in other markets, such as healthcare. In many countries, governments are already beginning to look at home-based remote monitoring devices, which frequently incorporate cellular technology, as a way to maintain high standards of care in a cost effective manner. Given the U.S.’s aging population and healthcare cost concerns, it is not surprising the U.S. Government has been at the forefront of these efforts with legislation such as the Fostering Independence through the Technology Act of 2011, the Veterans’ Telehealth and Telemedicine Improvement Act and California’s Telehealth Advancement Act.

Builta continues: “To-date, the overall uptake of cellular modules in the medical market has been fairly limited. However, considering the size of the aging population and increasing number of people with chronic diseases, there is no industry other than automotive that has greater potential for cellular M2M communications. As medical expenditures continue to rise, governments worldwide will increasingly promote the use of technology, including cellular, to provide affordable healthcare solutions.” IMS Research projects that partially due to these increased government initiatives, module shipments into the medical market will grow at more than a 95% compound annual growth rate (CAGR) from 2010 to 2016.

However, while Builta believes the market for cellular modules will grow, he cautions that government regulations can also serve to inhibit uptake of cellular modules in these same markets. “Cellular-enabled medical devices, for example, are typically required to go through a complex and time-consuming approval process through multiple regulatory bodies. Furthermore, government standards are often not the same in each country, meaning this process is even more difficult if manufacturers want to sell their cellular-connected devices internationally.”

The Market for cellular modules in the automotive market could also be negatively impacted by regulations. “Governments actions that aim to reduce distracted driving could force manufacturers to limit the functionality of applications such as connected infotainment systems. This could result in reducing the popularity and consumer demand for such systems,” he said.

IMS Research’s latest report, The World Market for Cellular Modules in M2M Communications – 2012 Edition, assesses the uptake of cellular modules in 9 vertical markets. Detailed forecasts are provided through 2016. All module shipment forecasts are split by air interface technology and region. The report also includes discussion of the competitive environment, including market shares for the leading module vendors. This report was published in March 2012.



No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2013 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
The true cost of lubrication: Three keys to consider when evaluating oils; Plant Engineering Lubrication Guide; 11 ways to protect bearing assets; Is lubrication part of your KPIs?
Contract maintenance: 5 ways to keep things humming while keeping an eye on costs; Pneumatic systems; Energy monitoring; The sixth 'S' is safety
Transport your data: Supply chain information critical to operational excellence; High-voltage faults; Portable cooling; Safety automation isn't automatic
Case Study Database

Case Study Database

Get more exposure for your case study by uploading it to the Plant Engineering case study database, where end-users can identify relevant solutions and explore what the experts are doing to effectively implement a variety of technology and productivity related projects.

These case studies provide examples of how knowledgeable solution providers have used technology, processes and people to create effective and successful implementations in real-world situations. Case studies can be completed by filling out a simple online form where you can outline the project title, abstract, and full story in 1500 words or less; upload photos, videos and a logo.

Click here to visit the Case Study Database and upload your case study.

Maintaining low data center PUE; Using eco mode in UPS systems; Commissioning electrical and power systems; Exploring dc power distribution alternatives
Synchronizing industrial Ethernet networks; Selecting protocol conversion gateways; Integrating HMIs with PLCs and PACs
Why manufacturers need to see energy in a different light: Current approaches to energy management yield quick savings, but leave plant managers searching for ways of improving on those early gains.

Annual Salary Survey

Participate in the 2013 Salary Survey

In a year when manufacturing continued to lead the economic rebound, it makes sense that plant manager bonuses rebounded. Plant Engineering’s annual Salary Survey shows both wages and bonuses rose in 2012 after a retreat the year before.

Average salary across all job titles for plant floor management rose 3.5% to $95,446, and bonus compensation jumped to $15,162, a 4.2% increase from the 2010 level and double the 2011 total, which showed a sharp drop in bonus.

2012 Salary Survey Analysis

2012 Salary Survey Results

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.