© Cinterion Wireless Modules GmbH 2008, All rights reserved
M2M Communication – NextRevolution on Wireless InteractionHolger Lenz / Joachim KossCinterion Wireless Moduleswww.cinterion.com
ETSI Workshop on Machine to Machine Standardization4 - 5 June 2008 – ETSI, Sophia Antipolis, France
ETSI Workshop on M2M StandardizationPage 2 4 - 5 June 2008 Holger Lenz / Joachim Koss
M2M Market Potential
M2M Trends & Drivers
M2M Technologies
M2M Applications
Summary
Machine-to-Machine (M2M) communication has a hugegrowth potential
50 millionconnectedusing cellulartechnology**
50 billionmachines*
6 billionpeople
2,7 billionmobilephone users
* Future World Consultancy, RSA** Allied Business, 2007
M2M Market Potential
ETSI Workshop on M2M StandardizationPage 3 4 - 5 June 2008 Holger Lenz / Joachim Koss
M2M Market Potential
M2M Trends & Drivers
M2M Technologies
M2M Applications
Summary
Most M2M applications benefit from wirelessconnectivity over mobile networks
RemoteMaintenance &Control (RMC)
Router / Gateway /Wireless Local Loop
MobileComputing
Security
Metering
Automotive &Electronic Toll
Tracking& Tracing Payment
M2M Market Potential
ETSI Workshop on M2M StandardizationPage 4 4 - 5 June 2008 Holger Lenz / Joachim Koss
M2M Market Potential
M2M Trends & Drivers
M2M Technologies
M2M Applications
Summary
Cellular M2M module shipments (mio units)
0
5
10
15
Telematic Security AMR Payment RMC
20072010
Pre-dominant markets with great opportunities ahead
+45%
+60%
+190%
+160%
+160%
(incl. Automotiveand Tracking &Tracing)
Source: ABI, The cellular M2M module market (June 2007)
M2M Market Potential
ETSI Workshop on M2M StandardizationPage 5 4 - 5 June 2008 Holger Lenz / Joachim Koss
M2M Market Potential
M2M Trends & Drivers
M2M Technologies
M2M Applications
Summary
source: ABI, The cellular M2M module market (June 2007)
Market forecast global cellular M2M modules
0
10
20
30
40
50
60
70
80
90
2006 2007 2008 2009 2010 2011 2012
CAGR (06-12): +31% Mature M2M market whereCDMA and GSM networksare available, and telematicapplications are strong.
North America:
Emerging M2M marketwith large Fixed WirelessTerminal (FWT) projects.
Asia-Pacific:
M2M market is at an earlyphase, with major countriesbeing Brazil, South Africa,Israel.
LATAM & MEA:
Europe:Largest and mostadvanced M2M marketwith GSM as the dominanttechnology.
Source: ABI, The cellular M2M module market (June 2007)
Cellular M2M module shipments (mio units)M2M Market Potential
ETSI Workshop on M2M StandardizationPage 6 4 - 5 June 2008 Holger Lenz / Joachim Koss
M2M Market Potential
M2M Trends & Drivers
M2M Technologies
M2M Applications
Summary
� Acceptance of service automation
� OEMs increasingly use M2Mto implement „smart services“
� Requirement for greater productivity(lean processes, reduced complexity)
� Limited availability of resources(regulations to save natural resources)
Market trends and future growth driversin M2M communication
� Increased consciousness tosave energy
� Dedicated M2M connectivityofferings by MNOs and MVNOs
� Increased need for safety andasset protection
M2M Trends & Drivers
ETSI Workshop on M2M StandardizationPage 7 4 - 5 June 2008 Holger Lenz / Joachim Koss
M2M Market Potential
M2M Trends & Drivers
M2M Technologies
M2M Applications
Summary
M2M is an opportunity for MNOs and OEMsto extend their business scope
MNO
Person-to-Persone.g.� Messaging� Ring tones� Media delivery
(mobile music, TV)
Machine-to-Machinee.g.� Home security� Home automation� Personal health monitoring
� Attract & retaincustomers
� Offer new servicesgenerating additionalrevenue
OEM
e.g.� Vending machines� Metering equipment� Manufacturing systems� Office equipment
e.g.� Networked devices
enhance by value-addedservices (pay-per-use)
� Remotely serviceablemachinery
� “Smart services”
� Additional servicerevenues
� Reduce machinerydowntime
� Reduce service costs� Increase customer
retention
Service centricProduct centric
M2M Trends & Drivers
ETSI Workshop on M2M StandardizationPage 8 4 - 5 June 2008 Holger Lenz / Joachim Koss
M2M Market Potential
M2M Trends & Drivers
M2M Technologies
M2M Applications
Summary
With wireless M2M OEMs can extend their businessmodel and achieve competitive advantage
Extended business model
Existing business model
Design
Build
Sell
InstallOperate
Maintain
Repair
Finance
Extendbusiness
model overentire
lifecycle
With wireless M2M OEMs can:
� …remotely and continuouslycapture and analyze machineperformance data
� …preemptively initiate andmanage repairs and upgrades
� …offer differentiated productsupport and services over theentire „product-in-use“ lifecycle
� …introduce new offering(pay-per-use, on-demand)
� …identify root causes of failure
� …use captured data for productimprovements and new designs
M2M Trends & Drivers
ETSI Workshop on M2M StandardizationPage 9 4 - 5 June 2008 Holger Lenz / Joachim Koss
M2M Market Potential
M2M Trends & Drivers
M2M Technologies
M2M Applications
Summary
Impact of smart service solutions oncustomers and operations
Source: Aberdeen Group (2007)
M2M value proposition:� Provide services more
cost-effectively
� Predictive andpreemptivemaintenance
� New revenue streamsfrom additional serviceofferings
� Lifecycle servicecontract
� Pay per use, novelfinancing models
Advantages for OEMs integrating wireless M2M intotheir service offering
-30%
-13%
-11%
12%
20%
23%
38%
-40% -20% 0% 20% 40%
Technician dispatches
Mean time to repair
Service response time
Service profitability
Service revenues
Machine uptime
Customer retentionM2M Trends & Drivers
ETSI Workshop on M2M StandardizationPage 10 4 - 5 June 2008 Holger Lenz / Joachim Koss
M2M Market Potential
M2M Trends & Drivers
M2M Technologies
M2M Applications
Summary
Selecting the appropriate M2M Wireless Technologyfor the application
M2M Technologies
Transmission DistanceData VolumeSystems-/InfrastructureTechnology Interworking
MachineMachine
Direct communication
MachineAccessPoint
Applicationserver
WirelessTerminal
Local communication
MobileNetwork
ApplicationServerInternet
Web Interfacefor User
WirelessModuleMachine
Wide area communication
ETSI Workshop on M2M StandardizationPage 11 4 - 5 June 2008 Holger Lenz / Joachim Koss
M2M Market Potential
M2M Trends & Drivers
M2M Technologies
M2M Applications
Summary
Convergence of short-range and cellular technologiesin future M2M applications
Mob
ility
, per
form
ance
Standalone ready-to-gosystems
Combination of differentradios for specific usagescenarios
Complex systems formission-criticalapplications
RFID
3GHSDPA
GPRS/EDGE
IndustrialWLAN
Integration of complementary systemsto take advantage of individual
technology strength and efficiencygains.
� High availability, reliability and redundancy� Economies of scale because of global standardization� Low installation and deployment effort� High mobility combined with low-cost of ownership
M2M Technologies
ETSI Workshop on M2M StandardizationPage 12 4 - 5 June 2008 Holger Lenz / Joachim Koss
M2M Market Potential
M2M Trends & Drivers
M2M Technologies
M2M Applications
Summary
Wireless technologies for M2M communication
� GSM family servesM2M requirements well
Degree of mobility
Stat
iona
ryW
alki
ngD
rivin
g
User data rate
10 Mbps
IEEE802.16a,d
1 100
HSDPAHSUPA
IEEE802.16e
Systemsbeyond 3G
>2010
0.1
WCDMA
WLAN(IEEE 802.11x)
GSMGPRS
Zigbee(IEEE 802.15.4)
EDGE
Bluetooth
WiMAX
Infrastructure with global coverage already in place provides low invest ubiquitous network access.
M2M Technologies
ETSI Workshop on M2M StandardizationPage 13 4 - 5 June 2008 Holger Lenz / Joachim Koss
M2M Market Potential
M2M Trends & Drivers
M2M Technologies
M2M Applications
Summary
M2M applicationsTelematic, Remote Maintenance & Control (RMC)
� Comprehensive solution consistingof GSM, GPS and RFID technologyto manage the fleet and monitor thecargo / freight.
� Status of individual packets (e.g.temperature, unloading time/place)are continuously sent to the backoffice.
Telematic – tracking and tracing:� GPRS/GSM
modem� GPS
receiver
TemperatureSensors
Controldevice
Antenna GPS
Display(opt)
RFID Reader(opt)
Batteries> 24 h
M2M Applications
� The vending machine with an integratedGPRS M2M module enables a “smartservices” concept.
� The vending machines can be remotelymonitored via a GPRS connection toactively check for fill level or a possiblemalfunctioning.
RMC – vending machines:
ETSI Workshop on M2M StandardizationPage 14 4 - 5 June 2008 Holger Lenz / Joachim Koss
M2M Market Potential
M2M Trends & Drivers
M2M Technologies
M2M Applications
Summary
M2M applicationsTelematic – pay as you drive
� Establishes information such astravel time and distance
� Recording of accident data� Transmission of data to insurer� Tracking of stolen vehicles
Telematic – pay as you drive
M2M Applications
Customized monthly bill
Hardware Adaptation to insurance needs!
Insurance Products€How / When /Where / How Fast0
ETSI Workshop on M2M StandardizationPage 15 4 - 5 June 2008 Holger Lenz / Joachim Koss
M2M Market Potential
M2M Trends & Drivers
M2M Technologies
M2M Applications
Summary
M2M applicationsAutomated Meter Reading (AMR), Smart Metering
� Remote data transmission� Remote control
(e.g. switch on/off power flow)� Security control for manipulation� “Smart Metering”
Automated two-way communicationbetween utility meters and utilitycompanies back-end IT infrastructure
AMR – smart metering
M2M Applications
Meter(Power / Water / Gas / Oil / Heat)
GSM
GSM / GPRSsystem
Maintenance Center
Data Collecting Center
Internet
ETSI Workshop on M2M StandardizationPage 16 4 - 5 June 2008 Holger Lenz / Joachim Koss
M2M Market Potential
M2M Trends & Drivers
M2M Technologies
M2M Applications
Summary
M2M applicationsTelematic – eCall (Emergency Call)
� eCall: pan-European service based on asingle European Emergency number (112)
� Audio/Voice call together with MSD (datatransfer)
� Basis for additional vehicle data concepts(ITS, Intelligent Transport Systems)
Telematic – eCall
M2M Applications
Source: Saftey Forum, Recommendations of the DG eCall, for the introduction of the pan-European eCall
ETSI Workshop on M2M StandardizationPage 17 4 - 5 June 2008 Holger Lenz / Joachim Koss
M2M Market Potential
M2M Trends & Drivers
M2M Technologies
M2M Applications
Summary
Summary
� Machine to Machine (M2M) communicationis the next revolution of wireless interaction
� Global trends drive fundamental marketgrowth including- Business process optimization- Limited natural resources and increased
consumption consciousness- Increased need for safety
� Future proof cellular technologies provide areliable backbone for M2M
� Increasing number of MNOs offer dedicatedM2M tariffs
Summary
Wireless M2M is ready for “take-off”
Let’s speed it up by standardization
ETSI Workshop on M2M StandardizationPage 18 4 - 5 June 2008 Holger Lenz / Joachim Koss
M2M Market Potential
M2M Trends & Drivers
M2M Technologies
M2M Applications
Summary
Questions
Thank you for your attention
Now time for your questions
Holger Lenz / Joachim KossCinterion Wireless Modules
www.cinterion.com