If you needed more proof that the Internet of Things is a booming trend among investors, this is it.

Telit communications, a stock listed on London’s junior market, has soared sixfold since 2012 as investors are flocking to cash in on the growing sector.

The company’s shares are up 37 per cent this year alone.

Telit provides hardware that allows everyday items like cars, vending machines or even garbage bins to send and receive data.

The Internet of Things, a catchall phrase describing any devices that can connect with one another and send data back and forth, is hugely trendy – but experts say it’s more than just hype, suggesting that the sector is going to generate “hundreds of billions” in revenue growth in coming years. A 2014 report from Raymond James found:

The concept of the IoT will disrupt consumer and industrial product markets generating hundreds of billions of dollars in annual revenues, serve as a meaningful growth driver for semiconductor, networking equipment, and service provider end markets globally, and will create new application and product end markets that could generate billions of dollars annually.

Telit, founded in Israel in 1986, started out doing research and development for telecoms companies. Listing on Aim in 2005, the company has since expanded into software and data analytics.