The next-generation M2M and connected device market will reach 87 million endpoints by 2015, with a compound annual growth rate of over 25 percent, according to market analytics firm Compass (News - Alert) Intelligence.

The research firm believes that industry consolidation will occur rapidly over the next twelve to eighteen months. Given its report, the connected devices market is set for a huge growth.

By 2015 more than 40 percent of M2M connections in the U.S. could be running on 3G, 3.5G, or 4G networks.

"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; and that this hyper-connectivity coupled together with emerging cloud services will propel society into new ways of interacting with the world around us," explains James Brehm, Senior Strategist of Compass Intelligence."

The largest B2B vertical market, according to the research firm, is the transportation and distribution vertical, with over 30 percent market share.

The report adds that growth will come from areas where there is a demonstrable ROI and that are easiest to measure increased productivity and efficiency.

"Much confusion exists around what makes up M2M. In defining the market, the GSMA (News - Alert) includes devices like connected iPads and other media tablets, some Tier-1 MNOs include connected CE like picture frames, PNDs, and the like, while others including M2M specialists and M2MVNOs look solely to B2B applications," says Brehm.

Interestingly, the research firm says, cloud computing and cookie cutter hosted applications will drive M2M adoption.

Want to learn more about M2M technologies? Then be sure to check out the M2M Evolution conference, collocated with TMC’s (News - Alert) 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.