Spending on the Internet of Things (IoT) will rise dramatically over the next few years, from some $565bn this year to £1.7tn in 2020.
The figure comes from IDC's Worldwide Internet of Things Forecast 2015-2020, which said that the bulk of spending will be done by the enterprise.
Smartwatches and other gadgets get all the current attention, but it will be functional technology such as IT services that sets the IoT market alight, according to IDC.
"While wearable devices are the consumer face of the IoT, and where recognition of IoT appears to begin, the real opportunity remains in the enterprise and public sector markets," said Vernon Turner, IDC's senior vice president and research fellow for IoT in the enterprise.
"The ripple effect of IoT is driving traditional business models from IT-enabled business processes to IT-enabled services and finally to IT-enabled products, which is beginning to disrupt the status quo."
However, while spending will increase so will the threats. Cloud security firm OpenDNS said in its 2015 Internet of Things in the Enterprise Report that companies will be poorly equipped to handle the resulting data.
OpenDNS security researcher unveils first data-driven enterprise IoT security report http://t.co/6ar6N6vFyI— Brian Carpenter (@geeknik) June 4, 2015
"This report shows conclusively that IoT devices are making their way into our corporate networks, but are not up to the same security standards to which we hold enterprise endpoints or infrastructure," said Andrew Hay, director of security research at OpenDNS.
"Our hope is that, by using this report, security professionals and researchers can better understand the security implications of the IoT devices in their own environments."
IDC highlighted the same problem, saying that the rapid IoT adoption will bring serious security challenges, and that only agile and more considered businesses will reap any rewards.
"The IoT gained some significant momentum in 2014 as vendors and enterprises started to make concrete plans to capture the opportunity this market presents," said Carrie MacGillivray, programme vice president for IoT and mobile research at IDC.
"The challenge for vendors will be joining a strong ecosystem of partners that can provide a comprehensive solution.
"For enterprises, it will be determining which vendors understand their specific business problems and create solutions that are tailored to fit that business need. If these two challenges are overcome, the revenue potential that this market promises is huge."
The move towards the IoT is having a major impact on the strategy of major technology firms, with Google recently unveiling its Project Brillio operating system for the IoT.
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