Berg Insight estimates that global cellular M2M module shipments increased by 19.4 percent in 2015 to a new record level of 96.0 million. A somewhat higher growth rate is expected for 2016.
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Jul 13, 2016 • News • Future of FIeld Service • future of field service • M2M • machine to machine
Berg Insight estimates that global cellular M2M module shipments increased by 19.4 percent in 2015 to a new record level of 96.0 million. A somewhat higher growth rate is expected for 2016.
Until 2020, shipments of cellular M2M devices are forecasted to grow at a compound annual growth rate (CAGR) of 21.7 percent to reach 256.0 million units. East Asia, North America and Western Europe were the main geographical markets in 2015, accounting for around 75 percent of the total demand. The regions are similar in size measured by volume.
“Annual module revenues for the three largest market players Sierra Wireless, Gemalto and Telit increased by 12.5 percent to US$ 1.12 billion, with the total market value reaching approximately US$ 1.6 billion
These new standards are designed to be less complex to limit power consumption and are priced more favourably to address the mass market and make it viable to connect entirely new applications.
The results of Berg Insight’s latest cellular M2M module vendor market share assessment show that the three largest module vendors have 72 percent of the market in terms of revenues. “Annual module revenues for the three largest market players Sierra Wireless, Gemalto and Telit increased by 12.5 percent to US$ 1.12 billion, with the total market value reaching approximately US$ 1.6 billion,” says Johan Fagerberg, CEO at Sweden-based M2M/IoT analyst firm Berg Insight.
Sierra Wireless leads M2M module revenues, followed by Telit and Gemalto. SIMCom Wireless leads in shipments for the first time in 2015, but is only in fourth place in terms of revenues.
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Jan 06, 2016 • News • M2M • Berg Insight • IoT • Technology
According to a new research report from analyst firm Berg Insight, the global number of cellular M2M subscribers increased by 23 percent during 2015 to reach 265.2 million and is set to hit one billion by 2022.
According to a new research report from analyst firm Berg Insight, the global number of cellular M2M subscribers increased by 23 percent during 2015 to reach 265.2 million and is set to hit one billion by 2022.
One of the main trends highlighted by The Global M2M/IoT Communications Market report is the rapid transformation of the wireless M2M/IoT networking technology landscape. 2G networks are gradually taken out of service to be replaced by more efficient 4G technology. At the same time, new enhancements are being added to the LTE standard to better accommodate typical M2M use-cases with large numbers of devices and very low data requirements. In addition, the leading players in the mobile industry have reached a highly significant agreement to define a new global standard for low power wireless communication based on mobile network infrastructure. The new NB-IoT standard was accepted by the 3GPP in December 2015 and will be included in the 3GPP Release 13, due for publication in January 2016.
Berg Insight believes that the initiative will become successful in establishing a global standard for lightweight IoT communication on public networks in the next 3–5 years.
East Asia was the largest regional market with 90.4 million M2M subscribers, followed by Western Europe and North America with 59.0 million and 52.5 million respectively. Over the next five years, the installed base of cellular M2M devices is projected to grow at a compound annual growth rate (CAGR) of 22.9 percent. “Our current view is that the 1 billion milestone for cellular M2M subscribers will be reached in 2022”, says Tobias Ryberg, Senior Analyst Berg Insight and author of the report.
As the cellular M2M market continues to grow, it is starting to generate substantial revenues for leading telecom operator groups. Verizon and Vodafone reported quarterly M2M/IoT revenues in the range of € 150–200 million each in the first half of 2015 and could be on track to reach € 1 billion on an annual basis within a few years’ time. Both groups have substantial telematics businesses, originally established through acquisitions. Besides traditional connectivity and professional services, they generate a considerable share of their sales from automotive products, driver assistance services and connected automotive applications.
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Oct 29, 2015 • Features • 3D printing • Advanced Field Service • Future of FIeld Service • M2M • wearables • Service Manager Handbook
In our serialisation of The Service Manager Handbook (2015 edition) published by Advanced Field Service we have covered a wide ranging number of topics key to the modern field service manager's role. Now we take a look to the future with three key...
In our serialisation of The Service Manager Handbook (2015 edition) published by Advanced Field Service we have covered a wide ranging number of topics key to the modern field service manager's role. Now we take a look to the future with three key technologies the handbook highlights that could be critical in your field service operations before not too long...
You can expect your field service software provider to keep a watching brief on the technology landscape and to identify practicable developments that have genuine potential to improve efficiency and lower costs. Those bright ideas must translate into a business reality that brings added value.
Machine-to-machine (M2M) communication
Among the innovations currently attracting attention in the field service space is M2M communication, which forms the basis of the ‘Internet of Things’ in allowing networked devices to exchange information and perform actions without manual assistance.
With this crucial business intelligence, organisations can shift from reactive to predictive service, ensuring issues can be identified and resolved more quickly to meet rising customer expectations.
Typical solutions enable the remote tracking of a business’s field-based assets, smart metering to monitor and control energy and utilities and telematics systems to enhance service delivery performance through automated processes.
Despite forecasters predicting that the worldwide M2M technology market is set to continue growing, many businesses remain cautious about adoption due to limited time and resources and cost pressures. Furthermore, most service organisations will need to wait for manufacturers to introduce the capabilities of M2M before they can take full advantage of it.
Wearables
The idea of wearables, whereby information, such as schematics, is piped through to field service engineers through their smartglasses, is very attractive. It has to be admitted though that this is more of a long-term prospect.
The Field Service News research sponsored by Advanced Field Service found that while around a third of respondents saw the advancement of wearables happening within the next 12 months, citing reasons such as the advantage of hands-free working and health and safety, 66% did not think wearables would become part of their field engineers’ toolkit.
It is, however, definitely a field worth watching, with innovations becoming mainstream, such as the new SmartCap that monitors brain activity and sends an alert if an employee starts to nod off when driving.
3D printing
3D printing also has potential to revolutionise the field service industry. In the foreseeable future, an engineer might well be able to identify which parts of a product need replacing, upload the specifications and print the required part. Imagine the impact on first-time fix rates and the reduction in inventory!
A recent Advanced Field Service survey found that while 43% of businesses are currently using M2M and just over a quarter (26%) of respondents are considering M2M. In contrast, 31% said they had no plans to do so.
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Oct 19, 2015 • Features • Future of FIeld Service • future of field service • M2M • big data • IoT
Sumair Dutta of The Service Council explores the findings of their latest IoT research...
Sumair Dutta of The Service Council explores the findings of their latest IoT research...
Of the near 70% of organisations in The Service Council’s (TSC) community with connected service (or M2M or IoT) projects in place in a 2015 research survey, 53% indicated that they have had remote access to machine data for over 5 years. In return, they have built improved responsive and predictive service delivery processes.
As organisations get more mature around the use of IoT-enabled data in service, they are beginning to identify the opportunity present in leveraging data across other areas of the organisation. This sharing strategy follows a maturity path, wherein engineering and product design are the initial beneficiaries before sales, marketing and other groups can access this data for revenue programs.
Inside the Enterprise
Organisations continue to be extremely silo’d and the use of IoT-generated data is no exception. Largely, service data is typically used by service and operations in an organised manner. Use outside of service tends to be mostly sporadic or ad hoc with a few exceptions. This will change, and the bullets below highlight areas of opportunity currently untapped by most service organisations.
Engineering[unordered_list style="bullet"]
- Improve quality of products tied to failure and performance information (currently done by 68% of respondents)
- Work with service teams to improve serviceability of products (currently done by 58% of respondents[/unordered_list]
Product Design and Systems Support[unordered_list style="bullet"]
- Track software versions and make necessary updates (currently done by 40% of respondents)
- Add/remove product features tied to usage (currently done by 19% of respondents)[/unordered_list]
Operations and Business Planning[unordered_list style="bullet"]
- Predict future business trends and plan resource needs (currently done by 36% respondents)
- Work with service teams to manage performance-based contracts (currently done by 40% of respondents)
- Manage and administer pay-per-use[/unordered_list]
HR and Training[unordered_list style="bullet"]
- Improve and modify training based on service event occurrence (currently done by 36% of respondents)
- Deliver real-time training during a service event (currently done by 23% of respondents)[/unordered_list]
Sales and Marketing[unordered_list style="bullet"]
- Improve account management with better access into customer usage of product and features (currently done minimally)
- Personalise messaging and content tied to customer preferences (done minimally)
- Recognise need for and build new services (currently done by 28% of respondents)[/unordered_list]
Supply Chain
[unordered_list style="bullet"]
- Manage inventory replenishment levels (currently done minimally)
- Evaluate partner performance and isolate quality issues to supply chain link (currently done minimally)[/unordered_list]
Other teams such as compliance and finance cam also tap into these data streams for better results, but as with most maturity models, this takes time. Progress requires interest on behalf of non-service groups to tap into this data; the ability to easily acquire and analyse data; and a set of processes to use this data to enact business change. These changes aren’t usually part of the short-term goals provided to these teams. However, as organisations begin to take an integrated look at customer journeys and customer success, there will be better alignment of functional activities with broader organisation and customer objectives.[quote float="left"]Delivering value is extremely important, but so is selling the sizzle...[/quote]Outside the Enterprise
In increasing the reach of IoT investments, organisations still run into a large group of customers who are unwilling to connect. Security and regulatory concerns lend to this lack of commitment from customers but it also comes down to a fear of connectivity and the lack of understanding in the true value.
Most of the financial value discussed with remote monitoring accrues to the servicing organisation. While there are uptime and efficiency benefits for the end customer, these customers either have to pay more for it, or are unaware of the benefit provided. In some instances, customers believe they are receiving less value, as the service teams are less visible. Therefore, delivering value is extremely important, but so is selling the sizzle.
To this end, it is important to consistently provide customers with visibility into:[unordered_list style="bullet"]
- IoT infrastructure investments made to support their businesses
- Reporting tied to issue, failure and cost avoidance
- Data on asset usage and performance
- Strategies to maximize customer outcomes[/unordered_list]
More than 60% of those in TSC’s research with IoT deployments in place already provide operating and performance information to customers. Traditionally this data has been in the form of emailed reports featuring historical performance. Now, there is a greater emphasis on providing diagnostic information and transaction logs in a more real-time manner. In addition, organisations are also providing their customers with access to benchmarking data tied to the performance of other like assets or other like customers.
With the aid of this information, customers see additional value in connecting via IoT, on top of the improved service delivered by their servicing partner. It also opens up the door for co-innovation opportunities where the customer and the servicing organisation can create new relationship and value opportunities that benefit both. It is also worth noting that these data reports generate additional revenue. Fifty-five percent (55%) of TSC’s community with IoT deployments in place indicate that their customers currently pay for reporting and additional data that is provided by the servicing organisation.
As service organisations look to transition to become solution partners, they can greatly improve their positioning with customers with the aid of IoT-enabled performance data. However, there has to be a greater emphasis on collaboration and innovation around the use of IoT data to truly drive sustained enterprise and customer value.
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Aug 31, 2015 • News • M2M • Oil&Gas • Research • Berg Insight
The installed base of wireless M2M devices in the oil & gas industry will reach 1.25 million by 2019 according to latest report from analysts Berg Insight: M2M Applications in the Oil and Gas Industry
The installed base of wireless M2M devices in the oil & gas industry will reach 1.25 million by 2019 according to latest report from analysts Berg Insight: M2M Applications in the Oil and Gas Industry
The number of devices featuring cellular or satellite connectivity deployed in oil & gas applications worldwide was 0.5 million at the end of 2014, says Berg, and is growing at a compound annual growth rate of 20.1 percent and expected to reach 1.25 million units by 2019. Of these, 0.99 million are predicted to be cellular units, with the remainder satellite based.
The oil and gas industry is characterised by remote and inaccessible facilities where wireless communication in many cases is he only viable option for transferring M2M data. Pipeline monitoring and tank monitoring are the top two M2M applications in the midstream and downstream segments, reports Berg, while on-shore well field equipment is the most common wireless application in the oil and gas upstream segment.
Wireless M2M solutions have become increasingly popular in oil and gas applications in the past few years. The main drivers for adoption are safety and environmental concerns, regulatory compliance and demand for improved operational efficiency.
“In 2014, M2M solutions in the oil and gas market experienced very healthy growth levels before slowing down at the end of the year when oil prices reached half of previous levels”, said Johan Svanberg, Senior Analyst, Berg Insight. North America is the leading region for wireless M2M in oil & gas and energy producers in the region were particularly affected by the price drops which resulted in halted investments. This change in the market has however led to an increased focus on cost savings and efficiency. He adds that new technology and solutions with a demonstrated high ROI are prioritised, especially when combined with Solution-as-a-Service business models which minimise the initial investment. Automation, remote control and monitoring are extra important in order to make it cost effective to extract, transport and distribute unconventional resources such as shale gas and tight oil.
Sierra Wireless, Digi International, Orbcomm and Numerex are major M2M players that deliver solutions to a wide range of industries including oil & gas.
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Aug 12, 2015 • Features • M2M • IoT • Software and Apps • telematics • Customer Satisfaction and Expectations
M2M managed services provider Wireless Logic has achieved impressive annual growth of over 30% in the past eight years and in 2015 reached the landmark figure of over 2 million SIM subscriptions. Following a root-and-branch review of its customer...
M2M managed services provider Wireless Logic has achieved impressive annual growth of over 30% in the past eight years and in 2015 reached the landmark figure of over 2 million SIM subscriptions. Following a root-and-branch review of its customer service capabilities, expectations and experience, the company is now embarking on a major customer service enhancement programme to sure its delivers quality service right, first time.
With a customer base now exceeding 1,000 solution providers across Europe, the need for quality customer services has never been greater yet the sheer mass of business being processed meant the company has always been in catch-up mode in the drive for service excellence, acknowledges Director of Operations, Matthew Tate, who joined the company from Research in Motion 14 months ago.
To understand how the organisation was performing a group-wide audit was undertaken.
Wireless Logic is horizontally positioned and works with hundreds of vertical applications - these include asset and vehicle tracking, telematics, metering, security, electronic payment, m-healthcare and a range of enterprise solutions. All services operate across a single unified technology platform and are designed to meet the specific needs of connected assets within the global markets of M2M and the Internet of Things (IoT).
Continuous investment in technology has enabled Wireless Logic to provide an increasing range of value-added services which include specialist mapping solutions from Google and HERE, device management platforms and end-to-end security encryption services.
Implementing improvements
Achieving ISO 9001 has been a journey that has really explored every corner of our operational service and delivery.
A new customer engagement and information platform from Zendesk has been introduced which is creating a new approach to how the organisation manages and interacts with customers. A root and branch change to staff training will see team members receive ongoing development and support across all facets of the business as it evolves to meet the needs of current and future users of its M2M services.
Zendesk has enabled Wireless Logic to integrate customer intelligence, dialogue and communication channels seamlessly – a major step towards delivering service excellence, says Tate.
With ambitious sales targets across the next three years, ensuring our own store is in order has been a major driver.
“With ambitious sales targets across the next three years, ensuring our own store is in order has been a major driver as we progress through our first year with our new private equity partners CVC Capital Partners on board,” concludes Tate. “We have service front of mind in the operation which will mean more contented customers, an entirely better user journey, and an ability to continue our growth curve with assurance.”
Oliver Tucker, CEO and Co-founder, Wireless Logic said: “With the M2M and IoT market in its ascendancy, the sector has to tailor its services to be more responsive and flexible. Our own experiences across the UK and in Europe suggest that customers expect a ‘right first time, every time’ mind-set; there is little room for error. We are pleased with progress made so far as we reshape the way we work with customers, and will continue to analyse feedback as we aim for excellence across the group.”
Jul 29, 2015 • Features • future of field service • M2M • management • Dr. Michael Provost • Servitization
Whilst the trend towards Servitization is rapidly becoming increasingly important for manufacturers and one that will have a significant impact on how field services operate, it is often viewed as a complex subject.
Whilst the trend towards Servitization is rapidly becoming increasingly important for manufacturers and one that will have a significant impact on how field services operate, it is often viewed as a complex subject.
However, one man who has been involved with the movement since its early beginnings is Dr Michael Provost. His excellent book “Everything Works Wonderfully: an Overview of Servitization and Physical Asset Management” (www.everythingworkswonderfully.com) is a distillation of his knowledge and experience in this area built up over nearly four decades, making it a much more accessible topic.
As an introduction, Mike opens his book with an excellent short story that neatly summarises the concept of Servitization. Field Service News is pleased to be able to share it with you here…
A Short Story
Anna Edwards* was a very happy woman. It was her last day as Managing Director of Precision Powerplants* and she was looking forward to a few months of rest and relaxation on the sunny Côte d’Azur with her husband Chris* while she pondered her next move. She knew that she was leaving the company in good shape for her successor (whoever that happened to be: there were several candidates from both inside and outside the organisation who were being put through the on-going ‘beauty contest’) and felt very satisfied with the progress that the organisation had made on her watch and the transformation that she had overseen.
The organisation’s reputation for well-engineered power units just wasn’t being reflected in profitable sales.
She decided to bring in Peter Carpenter*, an old friend from university whom Anna admired for his out-of-the-box thinking, no-nonsense tell-it-how-it-is approach and excellent people and communication skills. She sent Peter home to have a ‘big think’, telling him to stay away from HQ and the alpha gorillas all trying to outdo each other with short-term slash-and-burn fixes which Anna felt were the painful road to corporate oblivion. Peter’s brief was simple: produce a plan for getting out of the ‘commodity trap’ that the company had fallen into and do it quickly before the inevitable crisis came and the whole organisation would be brought to its knees.
Peter had been musing about how to save the company for a few weeks when Sara* burst in to his study as he was casually doodling on a notepad. “The boiler’s broken yet again, Peter!” she fumed. “I’ll have to cancel my day in town while I wait for the man to turn up to fix it. I bet he won’t even have the right parts in his van either! Why couldn’t the thing let me know that it was going to break, so I could arrange the repair at my convenience? Why can’t it tell the repair man what’s wrong? I don’t give a damn about boilers: all I want is hot water and a warm house! Looking after it is nothing but hassle!” She stormed out, clearly not at all pleased.
Just then, Peter had his ‘eureka moment’. Were customers thinking like this about power units? After all, they had businesses to run and their own customers to serve and didn’t want to worry at all about power sources. Were the units that they had bought just an irritating distraction to them, requiring time, effort and expertise to look after that they really didn’t have? What if Precision Powerplants used its expertise to look after the units it made (after all, the company had designed and built them, so no-one else should know them better) and charged for the power delivered, not the physical units? Would this idea get the company out of its death spiral?
Many of the capabilities needed were already in place: they just weren’t being brought together into a coherent whole.
Peter began to ask questions and research his idea in more detail and discovered that many of the capabilities needed were already in place: they just weren’t being brought together into a coherent whole. Peter found people in the organisation who had, despite some management objections and hostility from other co-workers, devised ways of mathematically modelling unit performance and creating actionable information from the data that could be gathered and transmitted from equipment in service: there were also experts in Spares and Repairs who knew how the units should be looked after. All this valuable and unique knowledge had been ignored by Engineering and Manufacturing who just wanted to design, make and sell units before pushing them out of the door ASAP. Something would have to be done to move the organisation from a product to a service mindset, Peter decided, if his idea was to succeed.
* Note: the company and characters are fictitious, but the scenarios are based on experience.
Look out for the second part of the story, coming soon!
Please note that this short story has been previously published in the following:-
Provost, M. (2014). Everything Works Wonderfully: an Overview of Servitization and Physical Asset Management - a Short Story. Asset Management and Maintenance Journal, Volume 27, Issue 5, September 2014, pp. 43-45. Mornington, Victoria, Australia: Engineering Information Transfer Pty Ltd.
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Jul 13, 2015 • News • Connected cars • M2M • Research • big data • smart meters • telematics
Technology analysts Juniper Research are forecasting that in revenue terms the telematics sector will continue to outperform all other M2M markets over the next five years, with one in five passenger vehicles connected globally by 2019. Connected...
Technology analysts Juniper Research are forecasting that in revenue terms the telematics sector will continue to outperform all other M2M markets over the next five years, with one in five passenger vehicles connected globally by 2019. Connected cars will represent 20% of the global car market by 2019, the company predicts.
Smartphone-based models have become the key disruptor for M2M, as sectors such as healthcare, consumer electronics and retail continue to evolve. Juniper Research forecasts that the M2M sector will generate service revenues of over $40 billion globally by 2019 - doubling the size of today’s market.
Smart metering to see global growth
The new research, M2M & Embedded Devices: Strategic Analysis & Vertical Market Forecasts 2015-2019, observed that the roll-out of smart metering initiatives will see rapid up-take over the next six years, driven in part by governments’ ambitions to increase efficiency.
The utility sector, however, is not expected to generate similar revenues to that of the connected automotive sector.
The utility sector however is not expected to generate similar revenues to that of the connected automotive sector.
Mergers, acquisitions, new applications
Agriculture and environmental applications are starting to emerge as important new sectors in the M2M market, with applications as diverse as wild-life and farm animal monitoring, and increasing productivity through precise field mapping. Some of the industry’s most powerful players are coming together, such as the merger of KORE Telematics and Raco Wireless, and the acquisition by Huawei of the M2M technology start-up Neul.
Other key findings include:
- The US remains the leading geographical region for M2M, ahead of Western Europe. China is becoming increasingly important as initiatives by the country’s major carriers begin to take shape.
- Implementation of Big Data analytics will play an increasingly important role, particularly in areas such as telematics, smart metering and healthcare.
Key questions, says Juniper are:
- Which market verticals hold the greatest promise in terms of service and connectivity enablement revenues?
- What are the prospects for cellular-based M2M modules?
- How are smartphones and Big Data playing a role in the M2M universe, and how will these devices and technologies affect the M2M market moving forward?
- How is the API landscape developing and what role does it play?
- How will the IoT and the M2M universe interrelate with one another?
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Apr 13, 2015 • News • Advanced Field Service • Future of FIeld Service • M2M • machine to machine
Service management organisations could miss out on vital business intelligence, lucrative new revenue streams or fail to meet rising customer demands unless they embrace machine-to-machine (M2M) technology. These are the findings of a new white...
Service management organisations could miss out on vital business intelligence, lucrative new revenue streams or fail to meet rising customer demands unless they embrace machine-to-machine (M2M) technology. These are the findings of a new white paper commissioned by service management software provider, Advanced Field Service (Advanced).
The worldwide M2M technology market is forecast to grow to £30 billion by 2018* and is set to revolutionise the service management industry. However some businesses remain cautious about adoption due to limited time and resources, cost pressures and cultural resistance.
A recent survey[quote float="left"]“There is some confusion as to how M2M interplays with other technologies such as The Internet of Things, cloud, big data and mobile. While there is no clarity about what M2M is, and the benefits it offers, adoption rates will be slower than anticipated.
conducted by Advanced highlights that only 43% of businesses are currently using M2M. Just over a quarter (26%) of respondents revealed they are considering M2M but in contrast 31% said they had no plans to do so.
Greg Ford, Managing Director of Advanced Field Service, says, “There is some confusion as to how M2M interplays with other technologies such as The Internet of Things, cloud, big data and mobile. While there is no clarity about what M2M is, and the benefits it offers, adoption rates will be slower than anticipated.
“Many service organisations will need to wait for manufacturers to introduce the capabilities of M2M before they can take full advantage of it. For those who serve multiple manufacturer products, this can make planning and gaining access to data more difficult.”
M2M is effectively a subset of the Internet of Things and wirelessly connects machines, devices and equipment to collect and transmit data such as location, movement, temperature and environment. Typical solutions enable the remote tracking of a business’s field-based assets, ‘smart metering’ to monitor and control energy and utilities and telematics systems to enhance service delivery performance through automated processes.
Ford comments, “M2M technology provides valuable insight into the performance of equipment, vehicles and field engineers. With this crucial business intelligence, organisations can shift from reactive to predictive service, ensuring issues can be identified and resolved more quickly to meet rising customer expectations.
“M2M can also transform efficiency levels and increase profit margins. With rising costs and fierce competition continuing to impact the service industries, organisations who choose to overlook this technology may suffer a detrimental impact to their bottom line.”
Advanced Field Service’s integrated service management solutions enhance business intelligence for companies which provide installation, service or maintenance via a field or site-based workforce. Its Siclops system enables organisations to improve productivity, reduce administration costs and streamline scheduling processes.
Field Service News is published by 1927 Media Ltd, an independent publisher whose sole focus is on the field service sector. As such our entire resources are focused on helping drive the field service sector forwards and aiming to best serve our industry through honest, incisive and innovative media coverage of the global field service sector.
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