The number of security applications connected to European cellular networks in 2015 will be around 39.2 million, according to analyst firm Berg Insight.

The analyst firm predicted that wireless machine-to-machine (M2M) modules for security applications in Europe will grow from 2.4 million in 2010 to 21.4 million in 2015, a compound annual growth rate (CAGR) of 55 percent.

The number of tracking devices and wireless alarm systems monitored from an alarm receiving center will increase from seven million in 2010 to 39.2 million by 2015, a CAGR of 41 percent.

“There is still a significant untapped potential in the residential market segment for monitored alarms,” said André Malm, senior analyst at Berg Insight. “Only about 25 percent of the 30 million alarm systems in Europe are connected to an alarm receiving center.”

“The latest generation of monitored alarm systems with GSM/GPRS is well adapted to the residential market as many households abandon PSTN services. Berg Insight anticipates that there will be over four million alarm systems connected to cellular networks in Europe by 2015,” Malm added.

Vehicle tracking and recovery will remain the major application for wireless M2M communication in the security industry. The main markets in terms of units and value include tracking of passenger cars and commercial vehicles.

Several emerging niche markets such as construction equipment, leisure vehicles and boats will emerge, according to Berg Insight.

The European eCall initiative will drive the market. The initiative will equip all cars with GSM/GPS technology to enable automatic 112 emergency calls in case of an accident. This will drive adoption of stolen vehicle tracking services that can use the same technology.

Adoption of GSM/GPRS technology is also increasing in the intrusion alarm systems industry. Insurance companies encourage the use of dual-fixed line and wireless signaling solutions in monitored alarms.

Recently, Berg Insight said that the global shipments of GPS-enabled GSM/WCDMA handsets increased almost 97 percent in 2010 to 295 million units. Growing at a CAGR of 28.8 percent, shipments are forecast to reach 940 million units in 2015.