All around the world, wireless, wireline, and satellite networks have been developed during the last two decades, setting the stage for machine-to-machine (M2M) applications and equipment for utilizing these existing networks.

M2M communications are used for logistical tracking, telemetry, remote monitoring, geo fencing, security and scientific monitoring, whereby providing various benefits for industries ranging right from agriculture to retail, driving the satellite M2M industry for the next five to seven years.

The world’s satellite M2M communications market is presently experiencing exponential growth, as companies are seeking to raise productivity and reduce their costs at the same time. M2M hardware and equipment have been continuously reducing in both size and cost during the last five years.

A recent analysis from Frost & Sullivan (News - Alert), World Satellite Machine-to-Machine Communications Market, reveals that the market earned revenue of $726 million in the year 2009 and the revenue is estimated to reach $1.9 billion by 2016. The world satellite M2M communications market is strongly dominated by the United States which holds 62 percent market share. The analysis revealed that the Asia-Pacific region is expected to experience maximum growth in terms of regional share in the years to come.

In a press release, Daniel Longfield, a Frost & Sullivan research analyst said, "Smaller hardware paves the way for greater potential in the M2M industry to foray into new areas, especially in the in mobile or communication-on-the-move applications. Reduced equipment costs further accelerated opportunities by helping in the monitoring and tracking of more assets."

Internationally, there are more than 1 billion personal computers, 4 billion wireless phones, and 1 billion wireline phones in service. However, there are only around 100 million dedicated M2M devices in service, but if these numbers are reversed, it would be an ideal situation in the years to come. But the ever increasing costs of bandwidth and equipment will restrict the market growth in the short term.

In the release, Longfield added, "The average revenue per user among cellular operators is in the range of $6 to $7 per month, whereas satellite companies are in the $24 per month range. Additionally, hardware prices for satellite M2M equipment range from $74 to $3,200."