There will be more than 850 million machine to machine (M2M) connections by 2016, according to the latest report from Visiongain (News - Alert), an independent business information provider for the telecoms, pharmaceutical, defense, energy and metals industries.

M2M will become an important part of modern life. As telecoms operators try to find new revenue stream in saturated market conditions, M2M represents a big opportunity to transform revenue streams, ARPU and the telecoms landscape.

For enterprises, M2M will become a major tool for increasing efficient work processes and decrease OpEx and CapEx, according to the report.

M2M ecosystem members including automotive and e-health are poised for transformative change by 2016. Smart services, smart metering and the connected home promise a future of eco-friendly energy use, technologically advanced living spaces and connectivity.

M2M has the potential to improve the life of subscribers, the success of enterprises and the operations of service providers, according to VisionGain.

Several industries have begun adopting M2M solutions. Industry has already experienced successful business plans in the M2M segment.

Recently, a report from Yankee Group forecasts that worldwide enterprise cellular M2M connections will increase from 81.8 million in 2011 to almost 217.5 million in 2015. During the same time, connectivity revenue will increase from $3.1 billion to U.S. $6.7 billion. This will make M2M one of the biggest areas of growth in the wireless sector during the next several years.