Manufacturing Insights, an IDC company, has announced the release of a new study Machine-to-Machine Communication: Technology Landscape and Value Chain Overview. The study finds that machine-to-machine communication, which has long been focused on wired and wireless communication technologies, is emerging as a foundation for cost-effective, real-time visibility to assets and facilitates innovative ‘smart services’ business solutions that improve asset utilisation, boost service levels, and exploit new revenue opportunities.

In the report, Manufacturing Insights also concludes that a strong tendency towards 'extreme verticalisation,' where M2M projects revolve around the application of technology to solve a specific task, limits growth in this fragmented space. Manufacturing Insights predicts that as technology barriers break down, M2M will become easier and less costly to implement and open the playing field to new participants and innovative M2M-based business models. In addition, M2M will become an attractive option as executives look to adopt new revenue and growth opportunities and establish a competitive advantage.

"Until recently, the M2M space has been very much a dedicated segment with providers identifying themselves exclusively as M2M providers. However, several technology trends have lowered the barrier to entry for companies that bring additional technologies surrounding M2M solutions," states Joe Barkai, practice director, Product Lifecycle Strategies, Manufacturing Insights, and author of the report.

Based on more than 20 interviews with M2M technology vendors and consultants, the report highlights critical attributes of successful implementations and provides a high level classification of the key business values experienced by adopters of M2M technology. The research also provides a broad overview of M2M technologies, identifies challenges inherent with the technology, and introduces strategies for exploiting these challenges.