“Orders of our smart sensors, laser modules and LED modules, and timing devices to customers in the United States, Japan, and Europe continue to be the main contributors,” Heng said.

For 2019, the group is expected to invest more than RM60mil to expand its bio-sensor business if it is qualified by major customers for mass production.

The group has five new projects for next year, of which three would be designed into smart telecommunication device, while the fourth was a intelligent laser lighting module project to be developed for the automotive sector.

“The fifth project involves the development of environmental and bio-sensors to be used in smart phones, Internet of Things (IoT) wearable and automotive products.

“The initial feedback from these global companies is overwhelming,” he added.

Globetronics’ sensors contribute about 50% of the group’s revenue.

According to an International Data Corp (IDC) on IoT spending, worldwide spending is projected to reach US$772.5bil in 2018.

IDC projected worldwide IoT spending to sustain a compound annual growth rate (CAGR) of 14.4% through the 2017-2021 forecast period surpassing the US$1 trillion mark in 2020 and reaching US$1.1 trillion in 2021.

“IoT hardware will be the largest technology category in 2018 with US$239bil going largely toward modules and sensors along with some spending on infrastructure and security.

“Services will be the second largest technology category, followed by software and connectivity. Software spending will be led by application software along with analytics software, IoT platforms, and security software.

“Software will also be the fastest growing technology segment with a five-year CAGR of 16.1%.

“Services spending will also grow at a faster rate than overall spending with a CAGR of 15.1% and will nearly equal hardware spending by the end of the forecast,” IDC said.