M2M and radio communications technologies meant a growing number of “things” could exchange data without human intervention. The Internet of Things was born. The potential is significant and the challenges in terms of communication methods (M2M, RFID, NFC, WIFI, ZIGBEE, etc.), auto ID, network infrastructure, data and data transfer security, as well as respect for confidentiality are crucial. This marks a new direction for the GSM SIM (Subscription Identity Module) card, which could be renamed MIM (Machine Identity Module), and new prospects for the smart card industry .
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A new era for telecoms
Will the number of wireless cellular connections (GSM and LTE) between machines eventually overtake those between people? This is a possible scenario since one of the world leaders in M2M (Cinterion) was recently acquired by the world leader in digital security and SIM cards, Gemalto. M2M, whose modest early success mirrors that of GSM in 1991, is due to grow to even more impressive proportions (the 5 billion mark has recently been reached for cell phone users). And the number of target devices for M2M is estimated at between 50 and 70 billion, i.e. between 10 times the current number of wireless subscribers to cellular networks and 10 times the current population of the planet.
According to ABI Research, the number of M2M modules incorporating a MIM (Machine Identity Module) card delivered globally is likely to increase four-fold in six years (2009-2015). This means it would rise from 28 million to 114 million by 2015. This market is driven by several key applications, namely automobile, fleet management, energy and healthcare, in which the presence of the MIM card is absolutely critical for obvious reasons of safety and confidence in the data transmitted.
Significant advances have recently been made by ETSI in relation to standardizing the specification of these MIM cards. This will naturally encourage their adoption and implementation by “trade” integrators.
For the “smart security" industry, these developments offer new prospects for growth: delivery of new SIM cards, new secure elements and extended services to offer.
The Internet of Things (IoT) – a “clickable” world
The idea of connecting the virtual world of the internet to the physical world of objects and machines will rely on the development of IP networks, particularly IPv.6, which will increase the potential from four billion web addresses to more than 600,000 billion. It will also rely on future generations of cellular networks, particularly LTE (an All-IP network), which will provide bandwidths of more than 100 MB/sec. However, it will be built above all on convergence of wireless technologies (UMTS, HSPA, LTE, Wi-Fi, Wimax, etc.) and contactless technologies, such as those deployed with mobile telephony or home automation applications (NFC, Bluetooth and ZigBee). The total of 800 million NFC phones in 2015 is likely to grow in conjunction with payment and ticketing applications via the reading of RFID tags placed on objects or machines. One current example of a communicating object is the market in consumables and critical spare parts. When fitted with an RFID tag, these objects identify themselves when they are used or connected to equipment which houses them, thereby preventing counterfeiting.
The “attitude” tag and safety
The global tags market is already growing strongly. It will be given a new lease of life through these applications. Like M2M, the Internet of Things markets claim to be secure and trustworthy.
"Security must obviously be an integral part of equipment and objects – a SIM card, a circuit which is physically secure in terms of hardware as well as software – but it must also be considered throughout the data processing chain: in terms of network protocols, applications and services," emphasizes Jean-Pierre Delesse, head of the working group on new form factors with Eurosmart, the international trade body for Smart Security.
According to IDtechEx, 2.3 billion tags are set to be delivered this year compared with 1.98 billion last year.
Recommended reading: The Internet of Things - McKinsey Report
"(...) None of this is news to technology companies and those on the frontier of adoption. But as these technologies mature, the range of corporate deployments will increase. Now is the time for executives across all industries to structure their thoughts about the potential impact and opportunities likely to emerge from the Internet of Things. We see six distinct types of emerging applications, which fall in two broad categories: first, information and analysis and, second, automation and control (exhibit)."
Information and analysis: As the new networks link data from products, company assets, or the operating environment, they will generate better information and analysis, which can enhance decision making significantly. Some organizations are starting to deploy these applications in targeted areas, while more radical and demanding uses are still in the conceptual or experimental stages.
