According to a new research report from the analyst firm Berg Insight, shipments of wireless M2M modules for security applications will grow from 2.4 million in 2010 at a compound annual growth rate (CAGR) of 55 percent to reach 21.4 million in 2015. At the same time, the number of tracking devices and wireless alarm systems monitored from an alarm receiving centre will grow from 7.0 million in 2010 at a CAGR of 41 percent to reach 39.2 million by the end of 2015.

Vehicle tracking and recovery remains the major application area for wireless M2M communication in the security industry, using devices that combine GPS and GSM/GPRS technologies. The main markets in terms of units and value include tracking of passenger cars and commercial vehicles. However, there are also several emerging niche markets such as construction equipment as well as leisure vehicles and boats.

Today, luxury car owners are frequently advised to install security systems that take advantage of wireless communication and satellite positioning when applying for an insurance policy. 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.

Adoption of GSM/GPRS technology is also increasing in the intrusion alarm systems industry. Insurance companies encourage the use of dual fixed line and wireless signaling solutions in monitored alarms. Use of a single landline connection between the alarm system and the 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.

André Malm, senior analyst at Berg Insight said, “There is still a significant untapped potential in the residential market segment for monitored alarms. Only about 25 percent of the 30 million alarm systems in Europe are connected to an alarm receiving center.”

The latest generation of monitored alarm systems with GSM/GPRS is well adapted to the residential market as many households abandon PSTN services. Berg Insight anticipates that there will be over 4 million residential alarm systems connected to cellular networks in Europe by 2015.

Want to learn more about M2M technologies? Then be sure to check out the M2M Evolution conference, collocated with TMC’s (News - Alert) ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. The M2M Evolution Conference is for those industry professionals interested in capitalizing on a rapidly growing segment of the telecom industry. The M2M Evolution Conference embraces the any-to-any strategy of the Internet today. Co-sponsored by TMC Partner Crossfire Media, it showcases the solutions, and examines the data strategies and technological requirements that enterprises and carriers need to capitalize on a market segment that is estimated to grow to $300 Billion in the year ahead. To register, click here.

Bob Emmerson (News - Alert) is TMC's European Editor. To stay abreast of the latest news affecting the European market, check out Bob's columnist page.

Edited by Jennifer Russell