Archive for December, 2010

Berg Insight says machines account for 2.0 percent of mobile network connections worldwide

Gothenburg, Sweden – December 22, 2010: According to new a research report from the analyst firm Berg Insight, 2.0 percent of the mobile network connections worldwide were used for wireless machine-to-machine (M2M) communication at the end of 2010. The number of M2M subscribers increased by 46 percent year-on-year to an estimated 81.4 million. In the next five years, the total number of wireless M2M connections is forecasted to grow at a compound annual growth rate (CAGR) of 32.0 percent to reach 294.1 million connections in 2015. By that year of the period M2M as a share of the total number of cellular connections is projected to reach 4.0 percent.

“M2M and connected devices is now one of the main drivers behind the growth in mobile subscribers in Europe and North America”, said Tobias Ryberg, Senior Analyst, Berg Insight. “All of the world’s largest telecom operators now have several million M2M subscribers in their mobile networks. In Q1-2011, we expect that AT&T will become the first mobile operators to reach 10 million M2M subscribers after more than doubling the installed base in the past 12 months, largely thanks to a successful strategy for connected consumer electronics devices.”

According to Mr. Ryberg, mobile operators are facing a new market landscape where customers no longer have one or two mobile subscriptions, but up to five or more different wireless devices. Besides his smartphone and tablet, a technology-savvy American is likely to own an e-reader and a connected PND, drive a car with an embedded telematics system and have a cellular security alarm installed at home. His Scandinavian compatriot could have a smart electricity meter with embedded GPRS connectivity; a Frenchman may use a cellular speed control warning system and an Italian might have installed a car telematics device from his insurance company. Mr. Ryberg concludes that these are some glimpses of the future that will come and predicts that the vast majority of the world’s next five billion mobile connections will be embedded into consumer devices, machines and sensors.

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

Berg Insight says home health monitoring revenues grew to € 7.6 billion in 2010

Gothenburg, Sweden – December 21, 2010: According to a new research report from the analyst firm Berg Insight, the global market for home health monitoring of welfare diseases was worth approximately € 7.6 billion in 2010. Some of the most common conditions being monitored today are chronic diseases including diabetes, cardiac arrhythmia, sleep apnea, asthma and chronic obstructive pulmonary disease (COPD). These conditions cause substantial costs and reduce both life expectancy and quality of life. Berg Insight estimates that more than 200 million people in the EU and the US suffer from one or several chronic diseases where home monitoring can become a treatment option.

mHealth is a term for healthcare practice supported by electronic processes and communication using mobile phones or cellular network technologies. It is a very broad term that principally involves every kind of mobile health related communication, application or data service. The report covers home health monitoring involving patient self-testing using medical devices and remote transmission of the medical data to healthcare providers for disease management. “Progress is being made in the adoption of wireless technology among manufacturers of medical monitoring equipment, but there is still a long way to go before remote monitoring becomes a standard practise in the healthcare sector”, says André Malm, Senior Analyst, Berg Insight. He adds that consumer-oriented health and wellness monitoring will drive the mHealth segment in the near term. A growing number of wellness and medical monitors can be connected to a mobile phone via Bluetooth or other short-range technologies. More and more health and wellness apps are also being released for smartphones, ranging from BMI calculators, diet guides and sport trackers to medical reference apps. “The number of apps focusing on chronic disease management is however still relatively low”, commented Mr Malm.

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

Berg Insight says mobile will account for 3.4 percent of global ad spend in 2015

Gothenburg, Sweden – December 16, 2010: According to a new research report from the analyst firm Berg Insight, the total value of the global mobile marketing and advertising market will grow from € 1.7 billion in 2009 at a compound annual growth rate (CAGR) of 41 percent to € 13.5 billion in 2015. This will then correspond to 15.7 percent of the total digital advertising market or 3.4 percent of the total global ad spend for all media.

The mobile channel is becoming an integral part of the marketing media mix, a progress which is eased by the increasing habitual mobile media consumption exercised by consumers. “Handsets are extremely personal devices which people tend to always have within reach and most often switched on. This enables marketing opportunities which other channels lack”, said Rickard Andersson, Telecom Analyst, Berg Insight. Mobile marketing is adopted by an increasing amount of companies of all sizes and the budgets now devoted to the mobile channel are substantial. “Brands do however have to establish mobile strategies in order to spend wisely and capitalise on the potential the channel brings”, said Mr. Andersson. He adds that mobile components can be beneficially integrated in campaigns spanning also traditional media.

Berg Insight anticipates that the convergence between traditional web and mobile advertising will continue as the technological capabilities of PCs and handsets merge. Advertising actors which are competent to master both channels are well positioned to be successful in the combined digital advertising industry spanning all types of devices. Corporations such as Google and Microsoft openly aspire for market leadership in competition with among others Nokia, Yahoo! and Ericsson. Apple is a newcomer on the advertising scene and advantageously equipped to monetise the vast amount of free apps in the App Store through its iAd platform for in-app advertising.

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