Shipments of wireless M2M modules for security applications in Europe expected to grow to 22 million by 2014

05 February 2010

Vehicle tracking and recovery is a major application area for wireless M2M communication in the security industry. Devices combining GPS and GSM/GPRS technologies enable monitoring services for any mobile object. Passenger cars and commercial vehicles constitute the main target markets by virtue of numbers and individual value, but there are also many niche markets such as construction equipment as well as leisure vehicles and boats.

According to a new research report from Berg Insight, shipments of wireless M2M modules for security applications in Europe will grow from 2.3 million in 2009 to nearly 22 million by 2014. At the same time, the number of alarm systems and tracking devices monitored from an alarm receiving centre or similar will grow from about 10 million in 2009 to 34 million by the end of 2014.

Today, clients are frequently advised to install security systems that take advantage of wireless communication and satellite positioning when applying for an insurance policy. “If you buy a top-of-the-range luxury car in European countries such as the Benelux or the UK, your motor insurer will most probably require that it is equipped with a GSM/GPS anti-theft system”, says André Malm, senior analyst at Berg Insight.

He adds that once the European eCall initiative to equip all cars with GSM/GPS technology to enable automatic 112 emergency calls in case of an accident is in place, this will most likely also drive adoption of stolen vehicle tracking services that can use the same technology.

Insurance companies also encourage the use of dual fixed line and wireless signalling solutions in monitored alarm systems. Only a single landline connection between the alarm system and the alarm receiving centre is no longer deemed sufficient for high security premises. By adding a secondary wireless link, communication becomes much more reliable and cannot easily be disrupted.

Moreover, there is a significant untapped potential in the residential market segment that can be fulfilled with the latest generation of monitored alarm systems with GSM/GPRS or dual signalling technology. Berg Insight estimates that there will be nearly 4 million alarm systems connected to wireless networks in Europe by 2014.