According to new report from analyst firm Berg Insight, the number of cellular network connections used for machine-to-machine communication will grow from 37.5 million connections in 2007 at a compound annual growth rate (CAGR) of 37.9% to 186 million connections in 2012.
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GSM and legacy technologies currently dominate the market and accounted for about three-quarters (71%) of the total number of active connections at the end of 2007. CDMA was the second largest technology with a strong foothold in
Berg Insight believes that current machine-to-machine applications correspond to between 1–3% of the reported number of mobile subscribers in developed markets. In
However, Berg Insight forecasts that vehicle telematics applications will dominate the machine-to-machine cellular market in most parts of the world and account for more than half of all network connections in 2012.
“Safety and security concerns – manifested either in public regulations or customer preferences – is tipping the balance in favour of massive rollouts of telematics applications by the global automotive industry”, comments Tobias Ryberg, senior analyst, Berg Insight.