The Internet is undeniably the most important innovation in recent history – it has enabled an open exchange of information and ideas, created a new age in commerce and brought together people across the globe. But the Internet's connective capabilities don't end with people. The next wave of the Internet is already underway, and it is taking devices and putting them on the grid. This ‘Internet of Things’ is taking everyday items and enabling them to communicate with each other, leading to real-time analytics, more efficient operations and predictive capabilities. Of course, we need sensors, communication infrastructure and software solutions to collect, communicate and decipher it all. All told, some experts think IoT will have an annual economic impact of over £4.6 billion by 2025. Here are seven companies that are poised to power this digital revolution.

Each of these Internet of Things-related stocks is an active recommendation of a Motley Fool premium investing service as of 31/8/2016.

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This watchlist consists of equally weighted stocks.