China's connected device market is expected to generate US$700 billion in direct revenues and related cost savings by 2020--a six-fold increase from US$116 billion in 2012, according to GSMA.
The trade body released a report Thursday stating that the forecased business impact of connected devices include US$393 billion in revenues from the sale of these devices and the services and revenues from related services. Another US$314 billion will be gained in cost reduction and service improvements, such as savings from the replacement of manual meter readers with smart meters.
Smartphones, tablets, consumer electronics as well as machine-to-machine (M2M) connections were identified as examples of connected devices, the study, conducted by Machina Research, stated.
Three industries were also identified as drivers to the market, namely the connected automotive, connected security system, and utilities and essential services.
Michael O'Hara, chief marketing officer of GSMA, said: "China is not only the world's largest mobile market, with more than one billion total mobile connections, but is using this to its advantage by creating new applications, products and services that can improve people's daily lives and advance its economy.
"China has positioned mobile technology at the centre of its expansion, from a booming car industry to the rapid development of new 'smart' cities, creating efficiencies and consumer benefits through cross-industry collaboration."
Japan was forecasted to take second place with an expected business impact of US$344 billion in 2012. Like China, Japan's two largest connected industries are the automotive and building security industries, it noted.
However, the leading industry in 2020 will be assisted living as Japan finds new solutions to provide care for its aging population, the report added. Enabling better care for the elderly at home will generate US$63 billion in business impact for Japan in 2020, it predicted.