Global spending on machine-to-machine (M2M) and Internet of Things (IoT) technologies will reach nearly $250 billion by 2020, driven by vertical market applications such as connected car services, remote asset tracking, healthcare monitoring, smart metering, digital signage, home automation and intelligent buildings, according to a report from SNS Research.

The installed base of M2M connections will grow at a compound annual growth rate (CAGR) of nearly 30% between 2015 and 2020, eventually accounting for more than 10 billion connections worldwide, the report says.

The study estimates that multimedia and video applications will account for more than 20% of the revenue generated by M2M and IoT services by 2020.

By enabling network connectivity among physical objects, M2M has helped initiate IoT, a global network of sensors, equipment, appliances, smart devices and applications that can communicate in real time, the report says.