European Wireless M2M, Tracking Device and Alarm System Market Looking at Explosive Growth in Coming Years

By Allison Boccamazzo December 13, 2012

A new report from Berg Insight released today reveals that shipments of wireless M2M modules for security applications in EU27+2 are expected to exponentially grow – specifically, from 2.9 million last year at a compound annual growth rate (CAGR) of 47.1 percent to reach 20 million in 2016. Furthermore, the number of tracking devices and wireless alarm systems monitored by alarm receiving centers is expected to similarly grow from 9.1 million last year to almost 40 million (39.7 million) by the end of 2016.

The reason for this expansion can be seen in an increase in the adoption of cellular connectivity, which is therefore creating an increase in the intrusion alarm systems industry. Supporting this claim, Berg Insight expects that between small businesses and residential homes, 4.3 million alarm systems will be connected to cellular networks in Europe by 2016. This shouldn’t come as much of a surprise, considering how only two percent of all households in Europe currently have a monitored alarm system, as explained by Senior Analyst at Berg Insight, André Malm.

Another driver for this increase can be found in the fact that insurance companies are encouraging the use of dual fixed line and wireless signaling solutions in monitored alarms, which better helps streamline communications without disruptions. This, in turn, will create a big push for the intrusion alarm systems market, which the research firm predicts will continue to grow for many years to come.

“The penetration of monitored alarm systems has only reached about three percent of all businesses and households in Europe,” explains Malm, adding that alarm systems are also becoming more valuable for customers as the scope of offerings are being expanded to include such things as detection of fire, gas and water leaks, and even home automation functionality.

Malm cites the economic climate to have a “major effect” on near-term growth in marks such as Spain and the U.K. as fewer households choose not to invest in such technology; however, recurring revenue from such alarm monitoring services for existing clients will keep the market successful and afloat, despite the economy.

When it comes to the largest application for wireless M2M communication in the security industry, vehicle tracking and recovery takes the cake, boasting widely-used devices that combine GPS and GSM/GPRS technologies. The success of this area is primarily found in the need for owners of luxury cars to install tracking systems when applying for insurance policies, as well as the proposed European eCall initiative, which will require all new cars sold in the EU starting in 2015 to be have an automatic emergency call system. There is also significant room for expansion found in emerging niche markets for tracking systems, including such things as construction equipment, leisure vehicles and boats.

Want to learn more about M2M technologies? Don’t miss the M2M Evolution Conference, collocated with ITEXPO Miami 2013, Jan 29- Feb. 1 in Miami, Florida.  Stay in touch with everything happening at M2M Evolution Conference. Follow us on Twitter.

Edited by Rachel Ramsey

IoTevolutionworld Web Editor

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