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Berg Insight: 39.2 million security applications will be connected to European cellular networks in 2015

by david.nunes

Berg Insight says 39.2 million security applications will be connected to European cellular networks in 2015

Gothenburg, Sweden – June 23, 2011: According to a new research report from the analyst firm Berg Insight, shipments of wireless M2M modules for security applications in EU27+2 is forecasted to grow from 2.4 million in 2010 at a compound annual growth rate (CAGR) of 55 percent to reach 21.4 million in 2015. At the same time, the number of tracking devices and wireless alarm systems monitored from an alarm receiving centre and similar will grow from 7.0 million in 2010 at a CAGR of 41 percent to reach 39.2 million by the end of 2015.


Vehicle tracking and recovery remains the major application area for wireless M2M communication in the security industry, using devices that combine GPS and GSM/GPRS technologies. The main markets in terms of units and value include tracking of passenger cars and commercial vehicles. However, there are also several emerging niche markets such as construction equipment as well as leisure vehicles and boats. Today, luxury car owners are frequently advised to install security systems that take advantage of wireless communication and satellite positioning when applying for an insurance policy. Once the European eCall initiative to equip all cars with GSM/GPS technology to enable automatic 112 emergency calls in case of an accident is in place, this will most likely also drive adoption of stolen vehicle tracking services that can use the same technology.


Adoption of GSM/GPRS technology is also increasing in the intrusion alarm systems industry. Insurance companies encourage the use of dual fixed line and wireless signalling solutions in monitored alarms. Use of a single landline connection between the alarm system and the alarm receiving centre is no longer deemed sufficient for high security premises. By adding a secondary wireless link, communication becomes much more reliable and cannot easily be disrupted. “There is still a significant untapped potential in the residential market segment for monitored alarms”, says André Malm, senior analyst at Berg Insight. He adds that only about 25 percent of the 30 million alarm systems in Europe are connected to an alarm receiving centre. The latest generation of monitored alarm systems with GSM/GPRS is well adapted to the residential market as many households abandon PSTN services. Berg Insight anticipates that there will be over 4 million alarm systems connected to cellular networks in Europe by 2015.


About Berg Insight

Berg Insight offers premier business intelligence to the telecom industry. We produce concise reports providing key facts and strategic insights about pivotal developments in our focus areas. Our vision is to be the most valuable source of intelligence for our customers.


For additional information, please contact:

Johan Fagerberg, CEO

E-mail: johan.fagerberg@berginsight.com

Phone: +46 31 711 30 91



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