Next-Generation M2M and Connected Device Market in the U.S. Will Touch 87 Million Endpoints by 2015

By Rajani Baburajan August 10, 2011

The next-generation M2M and connected device market in the country will touch 87 million endpoints by 2015, according to Compass Intelligence.

Primarily driven by hyper-connectivity, coupled with emerging cloud services, the M2M market during the period will report a compound annual growth rate (CAGR) of over 25 percent.

“We have entered an era where every device that can benefit from being connected via a cellular connection to the Internet will be connected to the Internet,” said James Brehm, senior strategist of Compass Intelligence, in a statement. “This hyper-connectivity coupled together with emerging cloud services will propel society into new ways of interacting with the world around us.”

By 2015, more than 40 percent of M2M connections in the U.S. could be running on 3G, 3.5G, or 4G networks, Compass Intelligence said in its report called “Next-Generation M2M and Connected Device Business Market - A Paradigm Shift: From Connecting Millions of People, to Connecting Billions of Things - Part I.”

However, the M2M segment is facing confusion around what makes up M2M. In order to define the market, the GSMA added devices like connected media tablets, Tier-1 MNOs include connected CE like picture frames and PNDs, while others including M2M specialists and M2MVNOs look solely to B2B applications.

According to the Compass Intelligence survey, the largest B2B vertical market is the transportation and distribution vertical, with over 30 percent market share.

Growth in the M2M segment will come from areas where there is a return on investment. Cloud computing and “cookie cutter” hosted applications are expected to drive M2M adoption. Industry consolidation is in the pipeline over the next twelve to eighteen months.

Recently, market intelligence agency InfoCom said that M2M has become a fast growing and strategically important market for many companies and network operators as M2M provides new possibilities for services and solutions for various products and processes.

Want to learn more about M2M technologies? Then be sure to check out the M2M Evolution conference, collocated with TMC’s ITEXPO West 2011, taking place Sept. 13-15, 2011, in Austin, Texas. The M2M Evolution Conference is for those industry professionals interested in capitalizing on a rapidly growing segment of the telecom industry. The M2M Evolution Conference embraces the any-to-any strategy of the Internet today. Co-sponsored by TMC Partner Crossfire Media, it showcases the solutions, and examines the data strategies and technological requirements that enterprises and carriers need to capitalize on a market segment that is estimated to grow to $300 Billion in the year ahead. To register, click here.

Rajani Baburajan is a contributing editor for IoTevolutionworld. To read more of Rajani's articles, please visit her columnist page.

Edited by Rich Steeves

IoTevolutionworld Contributor

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