Telematics and M2M Worth $178bn by 2007

The opportunities offered by telematics and M2M are endless. Automotive, fleet and freight, utilities, oil & gas, offices, homes, vending and POS are
among the many application areas. ARC Group expects the worldwide solutions market to be worth in excess of US$100bn by 2007. In addition, operator revenues worldwide from the transport of telematics data alone will rise from $3.5bn in 2002 to $78bn by 2007. ARC Group's new report: Increasing Profitability with Telematics & M2M demonstrates how profitability can be achieved despite a challenging business environment fraught with continually
shrinking margins.

Many mobile operators, including NTT DoCoMo in Japan, are placing great emphasis on telematics & M2M. It is one of the three themes underpinning the company's future strategy, and the company has already helped increase vending operators' profits by 70% through the introduction of cashless payment. In the same vein, Teclion has cut service visits by 50% by introducing remote monitoring. Nissan saves 40% on sales costs by providing wireless access to pricing and inventory information. And HBOC reduced incorrect shipments by as much as 80% through the use of wireless in their warehouses.

Report authors Lars Odlén and Ifeoma Nwoyeocha emphasise "what is exciting about telematics and M2M is that its potential is huge and mostly unexploited". Person-to-person (P2P) communication is approaching saturation in many advanced market communication channels, both fixed and wireless. However, few machines are, as yet, connected.

The connected world is here and all will be affected by it - consumers, suppliers, organisations or authorities. Telematics and M2M technology will change our lives and work as well as our society and legislative framework. As in any evolutionary change, the winners will be those that recognise and seize the new opportunities. The strongest value proposition for Telematics and M2M are the costs and consequences of not using them.

This Press Release Sponsored by AGILENT TECHNOLOGIES

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