Insurance companies put pressure on consumers to install wireless tracking and security devises in cars.

The market for wireless security systems and tracking devises is expected to grow rapidly this year as insurance companies urge their customers to install security systems that take advantage of wireless communication and satellite positioning when applying for an insurance policy.

“If you buy a top-of-the-range luxury car in European countries such as the Benelux or the UK, your motor insurer will most probably require that it is equipped with a GSM/GPS anti-theft system”, said André Malm, senior analyst at Swedish analyst firm Berg Insight.

The Gothenburg-based analyst company, which specializes in the telecom industry, predicts that shipments of wireless machine-to-machine (M2M) modules for security applications in Europe (EU27+2) will grow from 2.3 million in 2009 to nearly 22 million by 2014.

At the same time, the number of alarm systems and tracking devices monitored from an alarm receiving centre or similar will grow from about 10 million in 2009 to 34 million by the end of 2014.

Passenger cars and commercial vehicles constitute the main target markets by virtue of numbers and individual value, the company said.

Once the European eCall -- a project of the European Commission intended to bring rapid assistance to motorists involved in collisions -- is in place, it's likely to drive adoption of wireless stolen vehicle tracking services.