M2M deployment fuels demand for M2M test equipment, says Frost
The increasing deployment of machine-to-machine (M2M) technologies is spurring growth in the M2M test equipment market, which is forecast by Frost & Sullivan to reach $981.1 million in 2020, more than triple the revenues generated in 2013.
M2M vendors are using test equipment to ensure their devices work correctly and securely on the communications network, the market research firm explains.
Stakeholders from different levels of the M2M value chain are collaborating to standardize the technologies, which should lead to a quicker adoption of the devices and the test and monitoring equipment for them. Also, there is a growing need to optimize performance and battery usage of M2M mechanisms, which is further contributing to demand for test and monitoring equipment.
M2M manufacturers in particular want to reduce power consumption of devices because some communication protocols introduced to increase bandwidth require more power usage.
"Improved global wireless standards for smart device communications are fueling the uptake of network installation, maintenance and monitoring equipment. Current standards, such as global system for mobile (GSM) communications, general packet radio service (GPRS) and enhanced data-rates for global evolution (EDGE) with 3G, all support the use of M2M communications," says Olga Yashkova-Shapiro, Frost & Sullivan measurement and instrumentation program manager.
Differing standards and communication protocols are slowing down market growth because test equipment makers are reluctant to introduce new products that may not conform to the various requirements. Also, complicated data traffic management of M2M communications, absence of suitable security, high operational costs and high price of test equipment for smart devices are further restricting market growth, judges Frost & Sullivan.
"Scoring well on the price-performance front will be key to market expansion. Test equipment vendors will do well to maintain a rapid pace of product innovation and customize solutions to meet end-user requirements," concludes Yashkova-Shapiro.
- check out the Frost & Sullivan release
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