B2B start-ups are leading innovation in the Internet of Things (IoT), outpacing consumer start-up growth by 75 per cent last year.

This is according to Verizon's State of the Market: Internet of Things 2016 report, which also predicted that venture capital funding in enterprise-focused IoT start-ups will either double or triple over 2016.

It marks a change from two years ago, when Verizon Ventures the company's VC arm said consumer IoT start-ups had raised 15 per cent more funding than those selling to businesses.

Mike Lanman, senior vice president of IoT and enterprise products at Verizon, said: "In the past year, we've seen compelling examples of how IoT is being deployed by a wide-range of enterprises, entrepreneurs, municipalities and developers to address relevant business, consumer and public needs.

"Meanwhile, consumers are more willing to try new technologies and apps that introduce a better way of life. The end result will not only give rise to thousands of new use cases over the next two years, but will also create an accelerated pipeline for innovation and a new economy."

Taxi-hailing app Uber and car-sharing firm Lyft have made large investments in the IoT to keep up with changes brought about by the sharing economy, Verizon said.