The UK government is more than doubling the amount of funding it gives to technology companies working on devices that communicate via the internet.

Speaking in Germany today alongside Chancellor Angela Merkel, Prime Minister David Cameron said that the government is investing an additional £45 into the development of internet of things (IoT) technologies, bringing the total figure up to £73 million.

"I see the internet of things as a huge transformative development - a way of boosting productivity, of keeping us healthier, making transport more efficient, reducing energy needs, tackling climate change," said Cameron at the opening of the CeBIT 2014 trade fair in Hanover. 

"These are developments that could allow literally billions of everyday objects to talk to each other over the internet using low-cost, low-power chips.

"Electricity meters that talk to the grid to get you the best deals. Health monitors that keep an eye on your heart rate. Water pipes that warn of a fall in pressure."

Additional funding of £1m will be used to support a grant scheme called the European Internet of Things, which is for companies looking to make use of IoT technology in their business operations.

Analyst house Gartner predicts there will be nearly 26 billion devices connected to the internet of things by 2020.

Cameron also revealed a new joint venture between King's College London, the University of Surrey and Dresden University of Technology to develop 5G connections, which the PM said would allow consumers to download a full movie in "less than a second".

Merkel added that the next big challenge for Europe would be to create a "single digital market" for better competition between firms and better value and service for consumers.

Cameron is attending the event in Hanover as Britain is the official "partner country" of the event. He is joined on his visit to Hanover by the likes of Tech City UK chairman Joanna Shields and Raspberry Pi inventor Eben Upton.

"We are on the brink of a new industrial revolution and I want us – the UK and Germany – to lead it," said Cameron.

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