Machine-to-machine (M2M) refers to technologies that allow both wireless and wired systems to communicate with other devices of the same ability.[1][2] M2M uses a device (such as a sensor or meter) to capture an event (such as temperature, inventory level, etc.), which is relayed through a network (wireless, wired or hybrid) to an application (software program), that translates the captured event into meaningful information (for example, items need to be restocked).[3] This is accomplished through the use of telemetry, the language machines use when in communication with each other. Such communication was originally accomplished by having a remote network of machines relay information back to a central hub for analysis, which would then be rerouted into a system like a personal computer.[4]
However, modern M2M communication has expanded beyond a one-to-one connection and changed into a system of networks that transmits data to personal appliances. The expansion of wireless networks across the world has made it far easier for M2M communication to take place and has lessened the amount of power and time necessary for information to be communicated between machines.[5] These networks also allow an array of new business opportunities and connections between consumers and producers in terms of the products being sold.[6]
In recent years, SMS has become an increasingly important transmission mechanism for M2M communication,[7] with the ubiquity of GSM and the relatively low cost of SMS being cited as advantages. Concerns have been raised over the reliability of SMS as an M2M channel,[8] however the rise of direct Signaling System 7 (SS7) connected SMS gateways, which can offer increased reliability and the ability to confirm delivery, have allayed many of these fears.
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The origin of M2M communications is cloudy because of the many different possibilities of its inception. It began around the year 2000, possibly earlier, when cellular technology first began to learn to connect directly to other computer systems. An example of an early use is OnStar's system of communication.[9]
The year 2009 was important to the development of M2M technology, both in the U.S., and in Europe. In the United States, AT&T and Jasper Wireless entered into an agreement to both support the creation of M2M devices jointly. In conjunction, they have stated that they will be trying to further connections between consumer electronics and M2M wireless networks, which would create a boost in speed, connectivity, and overall power of such devices.[10]
In Europe, the Norwegian incumbent Telenor concluded ten years of M2M research by setting up two entities serving the upper (services) and lower (connectivity) parts of the value-chain. Telenor Connexion[11] in Sweden draws on Vodafone's former research capabilities in subsidy Europolitan and is a market leader in Europe's market for services across such typical markets as logistics, fleet management, car safety, healthcare, and smart metering of electricity consumption.[12] Telenor Objects has a similar role supplying connectivity to M2M networks across Europe. In December, 2009, Spanish Telefonica announced that they are also setting up a M2M entity in Madrid.[13]
In early 2010 in the U.S., AT&T, KPN, Rogers, Telcel / America Movil, Jasper Wireless began to work together in the creation of a M2M site, which will serve as a hub for developers in the field of M2M communication electronics.[14] In February 2010, Vodafone, Verizon Wireless and nPhase (a joint partnership of Qualcomm and Verizon) announced their strategic alliance to provide global M2M solutions that would offer their customers an easy way to roll out M2M solutions across Europe and the US.[15] In March 2010, Sprint and Axeda Corporation announced their strategic alliance for global M2M solutions.[16] In January 2011, Aeris Communications, Inc. announced that it is providing M2M telematics services for Hyundai Motor Corporation.[17] Partnerships like these make it easier, faster and more cost-efficient for businesses to use M2M. In June 2010, mobile messaging operator tyntec announced the availability of its high-reliability SMS services for M2M applications.
According to the independent wireless analyst firm Berg Insight, the number of cellular network connections worldwide used for M2M communication was 47.7 million in 2008. The company forecasts that the number of M2M connections will grow to 187 million by 2014.[18]
A research study from the E-Plus Group[19] shows that in 2010 2.3 million M2M SIM-cards will be in the German market. According to the study, this figure will rise in 2013 to over 5 million SIM-cards. The main growth driver is segment “tracking and tracing” with an expected average growth rate of 30 percent. The fastest growing M2M segment in Germany, with an average annual growth of 47 percent, will be the consumer electronics segment.
Wireless networks that are all interconnected can serve to improve production and efficiency in various areas, including machinery that works on building cars and on letting the developers of products know when certain products need to be taken in for maintenance and for what. Such information serves to streamline products that consumers buy and works to keep them all working at highest efficiency.[6]
Another application is to use wireless technology to monitor systems, such as utility meters. This would allow the owner of the meter to know if certain elements have been tampered with, which serves as a quality method to stop fraud.[20] In Quebec Canada, Rogers will connect Hydro Quebec's central system with up to 600 Smart Meter collectors, which aggregate data relayed from the province's 3.8-million Smart Meters.[21]
A third application is to use wireless networks to update digital billboards. This allows advertisers to display different messages based on time of day or day-of-week, and allows quick global changes for messages, such as pricing changes for gasoline.
Telematics and in-vehicle entertainment is an area of focus for M2M developers. Recent examples include Ford Motor Company, which has teamed with AT&T to wirelessly connect Ford Focus Electric with an embedded wireless connection and dedicated app that includes the ability for the owner to monitor and control vehicle charge settings, plan single- or multiple-stop journeys, locate charging stations, pre-heat or cool the car.[22]
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