Frost & Sullivan: Diverse Industrial
Applications Drive the World Satellite Machine-to-Machine
Communications Market

MOUNTAIN VIEW, Calif., class="xn-chron">July 29 /PRNewswire/ -- Worldwide,
wireless, wireline, and satellite networks developed significantly
in the last twenty years, setting the stage for machine-to-machine
(M2M) applications and equipment to utilize these existing
networks. Used for logistical tracking, telemetry, remote
monitoring, geo fencing, security, and scientific monitoring, M2M
communications provide benefits for industries ranging from
agriculture to retail, driving the satellite M2M industry over the
next five to seven years.

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The world satellite M2M communications market is currently
experiencing exponential growth, as companies seek to raise
productivity while reducing costs. M2M hardware and equipment have
continuously reduced in both size and cost in the last five
years.

New analysis from Frost & Sullivan ( target="_blank"
href="http://www.frost.com/prod/servlet/svcg.pag/ITSU">http://www.space.frost.com),
World Satellite Machine-to-Machine Communications Market,
finds that the market earned revenues of class="xn-money">$726 million in 2009 and estimates this to
reach $1.90 billion in 2016. class="xn-location">The United States dominates the world
satellite M2M communications market, with 62 percent market share
since its enterprises have the capital to implement M2M. The class="xn-location">Asia-Pacific region is expected to
experience maximum growth in terms of regional share in the long
term.

If you are interested in more information on this study, please
send an e-mail to Jake Wengroff,
Corporate Communications, at href="mailto://www.prnewswire.com/news-releases/jake.wengroff@frost.com">
jake.wengroff@frost.com, with your full name, company name,
title, telephone number, company e-mail address, company website,
city, state, and country.

"Smaller hardware paves the way for greater potential in the M2M
industry to foray into new areas, especially in the mobile or
communication-on-the-move applications," says Frost &
Sullivan Research Analyst Daniel
Longfield. "Reduced equipment costs further accelerated
opportunities by helping in the monitoring and tracking of more
assets."

Globally, there are over one billion personal computers, four
billion wireless phones, and one billion wireline phones in
service. There are only about one hundred million dedicated M2M
devices in service, but reversing those numbers would be ideal for
the long term. However, the escalating costs of bandwidth and
equipment will restrain market growth in the short term. Satellite
hardware and airtime are substantially more expensive than that of
their terrestrial counterparts.

"The average revenue per user among cellular operators is in the
range of $6 to $7 per month, whereas
satellite companies are in the $24
per month range," explains Longfield. "Additionally, hardware
prices for satellite M2M equipment range from class="xn-money">$74 to $3,200."

As hardware sales grow, economies of scale will develop and
contribute to reductions in unit prices for M2M equipment. As
prices fall for M2M equipment, more opportunities will materialize
in the vertical markets.

"Tracking of mobile assets and transportation monitoring are
becoming much more cost-effective for end users due to the
reduction in the cost of M2M equipment," concludes Longfield.

World Satellite Machine-to-Machine Communications Market
is part of the Space Communications Growth Partnership
Services program, which also includes research in the following
markets: World U.S. Military Satellite Communications on the Move
Markets, World Satellite VSAT Markets, World Satellite Services
Markets in the Oil and Gas Industry, African Transponder Market
Demand Outlook, and Maritime Market Study - Satellite
Communications, among others. All research services included in
subscriptions provide detailed market opportunities and industry
trends that have been evaluated following extensive interviews with
market participants.

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