June 6, 2014

M2M increase several industries in Brazil

Marcos Kinzkowski -Telit’s Sales Vice-Presidente for Brazil and Latin America – states about the Brazilian M2M market and forecasts for 2010

São Paulo – February, 11th 2010 – Even though M2M market, known as machine-to-machine, suffered a sensible decrease in 2009, the expectations for 2010 are the best. The M2M solutions are enhancing among companies from all sorts of segments. According to a research developed by McKinsey and Company, between 2002 and 2009 the M2M market achieved US$100 billion, combining the American, European and Japanese results.

In Brazil, the forecasts couldn’t be better. It is believed the country will increase about 3 or 5 times its current size only in 2010. Among M2M segments, the Automotive is the main market, representing more than 50%, not only on tracking but also on management and logistics solutions. Additionally, the "Automotive Law’, promulgated to diminish and avoid robbery, is under final analysis and will require the installation of a tracking device in each vehicle on the production line. The estimated number of new vehicles is more than 5.5 million for 2010, which might increase even more the possibilities of investment for all producers of GSM modules.

The security segment is on the spot too. In 2008, ABESE – The Brazilian Association for Companies of Security and Electronic Systems – registered 13% growth. The demand for smaller and more compacts modules that can fit into the modern and little devices used by clients in a daily basis will increase during the next decade, and attending to this demand will become a major priority for companies specialized in telecommunications. Also, the Patrimonial Security belongs to the same segment, representing 15% of the entire national demand. It is growing fast in the coming years, as the clearly expansion for GPRS connectivity solutions facilitates customers to receive alarms in their own mobile which stimulates the implementation of new systems and networks.

Other sectors with representative growth are the industrial automation and metering. Several companies, mostly Utilities, are considering to use M2M solutions to improve not only savings, with minimization of waste and robbery, but also improving the quality of their system management with online control. Electricity is leading but water and gas companies are starting. Several bids are being prepared for 2010.


The challenges resulted by this market’s expressive growth must be supported by towering investments in infra-structure and network transmission, as well as improving the quality and conquering credibility in new applications.

As a consequence, the active companies in this market must be able to follow the instantaneous increase of the demand, as a bunch of new solutions are being presented, overcoming the current demand. Moreover, these new applications might be supported by new, more robust and smaller products, increasing the technical functionalities of these devices.

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