The key challenge of future mobile communication networks is to strike an attractive compromise between the wireless network's area spectral efficiency and energy efficiency. This necessitates new approaches to wireless system design, embracing a rich body of existing knowledge -especially in the field of Multiple-Input-Multiple-Output (MIMO) techniques. Hence in this chapter, we describe Spatial Modulation (SM), which constitutes a promising new concept of wireless system design conceived for reducing the number of high-cost RF front-ends compared to other MIMO implementations. The concept of SM has recently established itself as a beneficial transmission paradigm, subsuming numerous members of the MIMO system-family. Research activities on SM have reached sufficient maturity to motivate its comparison against state-of-the-art MIMO systems, as well as to inspire its application in emerging wireless communication systems. Furthermore, it has received sufficient research attention to motivate its implemention in testbeds and it holds the promise of stimulating further vigorous interdisciplinary research in the years to come, especially in the emerging market of the Internet of Things (IoT).