M2M is an abbreviation for machine-to-machine, or technology that supports wired or wireless communication between devices. The abbreviation is also sometimes used to stand for man-to-machine, meaning communication between a man operated device and a
machine. Wireless M2M comprises all wireless network technologies, even though the term is generally used in reference to systems connected to cellular networks. This report is exclusively aimed at describing and analyzing wireless M2M based on commonly used
wireless wide area network technologies such as GSM/GPRS/EDGE and WCDMA/HSPA. GSM/GPRS is the leading technology for wide-area wireless M2M in Europe with almost complete market dominance. So far there has been little interest in UMTS/HSPA, due to high
component prices, limited coverage and less reliability. Some of the characteristics of HSPA, such as lower latency and radically improved data uplink (HSUPA) are however attractive for many M2M applications - particularly video surveillance, but also for instance fleet management. If multimedia and entertainment is included in future passenger car telematics systems, HSPA could also become attractive within that segment. There are billions of devices in Europe that could potentially be networked using fixed or
wireless technologies. Generally, the cost of connecting a device to a GSM/GPRS network must be justified by the perceived value of the information it communicates. The most obvious cases are remote monitoring of mission critical equipment or tracking of high value
assets. This type of applications however tends to be deployed in relatively small volumes. Mass market opportunities only exist in segments where valuable information can be generated by a large population of devices. Examples of this are found in the utility,
transportation, security and retail industries. Europe has 345 million energy meters, 254 million motor vehicles, 8 million security alarm systems and 6 million POS-terminals Altogether these segments represent a potential market of over 600 million wireless M2M connections.