More than a quarter of all businesses worldwide are using M2M technologies (up 23% year-on-year), according to Vodafone's third annual Vodafone M2M Barometer Report.
Almost 60% of companies report a significant return on investment from M2M, while 83% said M2M provides a competitive advantage.
Retailers lead adoption of the Internet of Things, up 88% year-on-year.
The early adopters are increasing their investment, with 81% making more use of M2M compared to the previous year.
Overall awareness of M2M and the Internet of Things increased significantly during 2014-15 - 78% of all companies surveyed (adopters and non-adopters) told researchers that they are familiar with the new technologies.
The fastest growth in rates of adoption is in the retail sector where typical M2M applications include in-store digital signage, smart payment systems and supply chain optimisation.
The M2M Barometer also found strong growth in the healthcare sector (up 47%) where M2M is used for applications such as remote patient monitoring and patient record systems; and the utilities sector (up 32%) driven by the global expansion of smart metering systems to enhance energy efficiency.
Meanwhile, the automotive industry continues to embed M2M as a core technology within the designs of new vehicles, with the accelerating production of connected cars accounting for a 14% year-on-year increase in M2M adoption in that sector.
Companies that have begun to adopt M2M technologies are experiencing benefits - 59% of early adopters reported a significant return on their investment in M2M, with a 28% year-on-year increase in the proportion of companies reporting a sizeable ROI impact.
Additionally, 83% of M2M adopters stated that they had gained a competitive advantage from their M2M deployments.
The Report also found an increasing level of sophistication within many companies' M2M applications including integration with cloud computing technologies and the advanced use of big data analytics.
Companies that have invested in these services reported the greatest business impact - 69% of advanced M2M users said their companies had been fundamentally transformed by the Internet of Things.
Vodafone Group Director of Machine-to-Machine Erik Brenneis (pictured above) said: "The Internet of Things is transforming more businesses faster than ever before. Machine-to-Machine technologies have as big an impact on how companies operate as the arrival of the desktop computer a generation ago, greatly enhancing productivity and competitiveness while opening up whole new fields of engineering innovation."
Analysys Mason Principal Analyst Michele Mackenzie observed: "There are two striking results in the Vodafone M2M Barometer Report for 2015. First, retail and healthcare stand out as sectors demonstrating considerable growth in adoption as an increasing proportion of companies transform themselves to compete more effectively in the digital economy.
"Second, there are some very interesting insights into the diverse measures used by companies to assess the value of M2M.
"There are compelling examples of cost savings, positive impacts on customer retention and the ability to unlock new revenue streams are also cited as tangible benefits that continue to drive investment in M2M."
The survey, conducted by Circle Research, was expanded for the 2015 report to include two new countries plus small and medium size enterprises for the first time, leading to an 80% increase in interview respondents.