Telematics will spin into the M2M industry alongside high adoption of smart metering.
In five years time telematics will be the biggest M2M sector by revenue, with one in five cars on the road connected to a global IoT ecosystem.
Forecasters predict the M2M sector to create revenues of $40 billion worldwide by 2019.
Anthony Cox, research author at Juniper Research, said: "Both India and China are expected to see rapid adoption of smart metering as new metering infrastructure is installed and smart cities are created."
"M2M & Embedded Devices: Strategic Analysis & Vertical Market Forecasts 2015-2019" report says this will be driven by government’s energy plans to increase energy usage efficiency.
The research firm added that the USA is the main M2M geographical region, with China assuming a growing importance as initiatives by the country’s major carriers begin to take shape.
The study highlights the M&As in the IoT and M2M space, citing the merger between KORE Telematics and Raco Wireless, and the acquisition by Huawei of the start-up Neul.