According to a new research report from analyst firm Berg Insight (Gothenburg, Sweden), shipments of wireless M2M modules for security applications in Europe are forecasted to grow from 2.4 million in 2010 at a compound annual growth rate (CAGR) of 55 % 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 center will grow from 7.0 million in 2010 at a CAGR of 41 % to reach 39.2 million by the end of 2015, according to Berg.
According to Berg Insight, vehicle tracking and recovery is a 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 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. According to Berg Insight, once the European 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, according to Berg Insight. 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 alarm receiving center is no longer deemed sufficient for high security premises. By adding a secondary wireless link, communication may be more reliable and more difficult to disrupt.
“There is still a significant untapped potential in the residential market segment for monitored alarms”, says André Malm, senior analyst at Berg Insight. He adds that only about 25 % 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 adapted to the residential market as many households abandon PSTN services. Berg Insight anticipates that there will be over 4 million alarm systems connected to cellular networks in Europe by 2015.