M2M and IoT to Influence Embedded Computing Growth

Based on our extensive research and market study of semiconductors, electronics and technology sectors over the past one year, we have come up with the following top trends in Machine to Machine & Internet of Things Industry for 2013.

Machine to machine (M2M) refers to technologies allowing both – wireless and wired systems to communicate with other devices of the same ability. Machine to machine (M2M) uses a device (such as a sensor or meter) to capture an event (such as temperature, inventory level, etc.), which is relayed through a network (wireless, wired or hybrid) to an application (software program) that translates the captured event into meaningful information (for example, items need to be restocked). Some of the key factors driving the market for M2M solutions include growing range of successful applications, regulatory mandates, penetration of 3G technology, and launch of 4G technology.

Internet of Things (IoT) is a recent phenomenon where the gadgets which we use everyday communicate with each other as well as with people to reduce redundancies and introduce the concept of smart living in the current generation. An example would be the refrigerator communicating to a smartphone the list of items that need to be replaced or the surveillance camera at your home contacting you or the police if there is a possible break-in without any manual intervention. The existing technology and infrastructure for M2M has helped in the breaking out of IoT based devices. Many products like Television, home theaters, set-top boxes, alarm systems are being integrated with a wireless chipset to enable communication capabilities. This has thus given rise to the smart digital living room market in some countries.

Some of the predominant technologies utilized for communication M2M and IoT are 2G, Ethernet, WiFi, Power Line, and ZigBee. While 2G technology held the highest share of M2M market as of 2011, the market for ZigBee technology is expected to grow at the highest CAGR

of 33.8% from 2012 to 2017. This is mainly attributed to its benefits such as low power consumption, low cost, and fast connection time for end-devices. MarketsandMarkets expects the global M2M market to grow at a CAGR of 26.1% from 2012 to 2017. The growth in M2M and IoT will become a major growth driver to the global embedded computing market which uses low power processors, microcontroller units, sensors and power management ICs to make products for Industrial applications as well as the commercial market segment.

Mr. Rohan

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