Telit Communications' market share on the up, says study by Beecham Research

Telit Communications received the thumbs up from broker Investec as a study on the global M2M communications sector revealed that the company’s share of the market jumped over 2010. Published earlier this week, the study by Beecham Research, a consultant specialising in the machine M2M communications market, reckons that Telit’s market share of the ‘modules’ market over 2010 rose from 12.4% in 2009 to 16.1% in 2010.

m2m ‘modules’ are small but critical hardware components at the heart of m2m technology and devices and use special m2m communications software. If Telit’s acquisition of Motorola’s m2m unit earlier this year is included in Beecham’s analysis, Telit’s share of the global industrial grade m2m modules market jumps to 22.2% on a pro forma basis.

More broadly, Beecham found that the market for industrial grade cellular m2m modules grew overall in line with its previous forecasts, with 39% volume increase offset by a price decline higher than 15%.

According to Beecham, the global m2m sector for industrial grade m2m modules expanded 17% in 2010 from $700m to $819m on an underlying basis, in line with its forecast from the prior year. Beecham is keeping its 2011 forecast flat at $925m.

The growing sophistication of the technology is being matched by an increasing number of applications, including in fields such as telematics, fleet management and the automatic remote reading of data – for instance gas meter reading – as well as security technologies, point-of-sale terminals and healthcare.

As far as Telit is concerned, m2m “turns data that has always been there into valuable information: new information that empowers individuals, businesses, the economy and the environment, in short, improves a nation’s health. It’s that simple, but the concept has huge ramifications”.

The company’s core business is the development, manufacture and marketing of communication modules for m2m applications. As an integrated manufacturer it owns intellectual property involved in the hardware, software and processes related to communication between different machines and between machines and people.

Certainly the potential for further growth in the market looks promising, auguring well for Telit’s prospects. Broker Investec, for instance reckons that at the moment there are around 150 million m2m devices out of a total potential of 50 billion.

The drivers for growth include increased legislation in areas such as eCall, a pan-European initiative which aims to link up emergency services across the region via telematic devices, for instance in cars, as well as tolling and e-metering.

Investec regards the Beecham report as positive news for Telit, underpinning its upbeat prognosis for the company’s prospects. Investec analyst James Goodman says: “We expect the results to corroborate market growth predicted by Beecham and we will be looking for further positive commentary around the Motorola integration.”

The Investec analysts are anticipating full year 2011 revenue will come in at just under US$200 million, with pretax profits of US$15.3 million, giving earnings per share of 10.2 cents. For 2012, they are looking for revenues of US$237 million, with pretax profits of US$23 million, giving earnings per share of 13.9 cents.

The group is headquartered in Rome, with R&D centres in Trieste and Cagliari in Italy, Seoul (Korea), Sofia Antipolis (France) and Tel Aviv (Israel). The 425-strong company boasts 20 sales offices worldwide and uses more than 50 resellers to cover 77 countries and over 2000 customers.

Source: www.proactiveinvestors.co.uk

RECENT ARTICLES

OpenText Europe: AI for growth and sustainability

Posted on: March 19, 2024

OpenText, the information company, is set to host OpenText World Europe 2024 April 15 – 18, 2024, with a series of in-person customer conferences taking place in London, Munich and Paris. The event series will bring together industry leaders, innovators and customers to discuss how technology can enable global organisations to build for growth, experience and sustainability.

Read more

Surrey leads new £8 million FORT centre for advancing secure networks

Posted on: March 18, 2024

The Engineering and Physical Sciences Research Council (EPSRC) announced that Surrey’s 5G/6G Innovation Centre will lead a new £8 million Centre for Doctoral Training in Future Open Secure Networks (FORT). 

Read more
FEATURED IoT STORIES

What is IoT? A Beginner’s Guide

Posted on: April 5, 2023

What is IoT? IoT, or the Internet of Things, refers to the connection of everyday objects, or “things,” to the internet, allowing them to collect, transmit, and share data. This interconnected network of devices transforms previously “dumb” objects, such as toasters or security cameras, into smart devices that can interact with each other and their

Read more

The IoT Adoption Boom – Everything You Need to Know

Posted on: September 28, 2022

In an age when we seem to go through technology boom after technology boom, it’s hard to imagine one sticking out. However, IoT adoption, or the Internet of Things adoption, is leading the charge to dominate the next decade’s discussion around business IT. Below, we’ll discuss the current boom, what’s driving it, where it’s going,

Read more

9 IoT applications that will change everything

Posted on: September 1, 2021

Whether you are a future-minded CEO, tech-driven CEO or IT leader, you’ve come across the term IoT before. It’s often used alongside superlatives regarding how it will revolutionize the way you work, play, and live. But is it just another buzzword, or is it the as-promised technological holy grail? The truth is that Internet of

Read more

Which IoT Platform 2021? IoT Now Enterprise Buyers’ Guide

Posted on: August 30, 2021

There are several different parts in a complete IoT solution, all of which must work together to get the result needed, write IoT Now Enterprise Buyers’ Guide – Which IoT Platform 2021? authors Robin Duke-Woolley, the CEO and Bill Ingle, a senior analyst, at Beecham Research. Figure 1 shows these parts and, although not all

Read more

CAT-M1 vs NB-IoT – examining the real differences

Posted on: June 21, 2021

As industry players look to provide the next generation of IoT connectivity, two different standards have emerged under release 13 of 3GPP – CAT-M1 and NB-IoT.

Read more

IoT and home automation: What does the future hold?

Posted on: June 10, 2020

Once a dream, home automation using iot is slowly but steadily becoming a part of daily lives around the world. In fact, it is believed that the global market for smart home automation will reach $40 billion by 2020.

Read more

5 challenges still facing the Internet of Things

Posted on: June 3, 2020

The Internet of Things (IoT) has quickly become a huge part of how people live, communicate and do business. All around the world, web-enabled devices are turning our world into a more switched-on place to live.

Read more