Machines make 4.3% of U.S. mobile calls, says analyst

LONDON — In 2009 machine-to-machine (M2M) calls accounted for 1.4 percent of mobile network connections worldwide, according to analysis firm Berg Insight AB (Gothenburg, Sweden). And these market shares are much higher in the United States and the European Union where they account for 4.3 percent and 2.4 percent, respectively, the firm said.

Berg predicts that over the next five years, the number of wireless M2M connections will grow at a compound annual growth rate (CAGR) of 25.6 percent to reach 187.1 million connections in 2014 when M2M will account for 3.1 percent of the cellular connections.

M2M is now starting to generate substantial revenue streams for large operators despite of the typical monthly average revenue per user of just a few euros, according to Tobias Ryberg, senior analyst at Berg Insight.

Regulatory developments are predicted to impact the telematics industry.

The European Union is expected to propose formal legislation for the introduction of eCall by 2014 but in Brazil the fate of Resolution 245 is more uncertain. The Dutch government's plans to introduce a nationwide electronic road charging system for all motor vehicles, if successfully introduced, will also have an impact.

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