Gartner has predicted that by 2012, context-aware computing will have grown to be a $12 billion (£7.1 billion) market.
The research company defines this as utilising information about the end user, such as location, presence and social attributes, to improve the quality of interaction with them.
It expects there to be at least two global context providers established in the same time frame and these are likely to have more than 100 million subscribers each.
Anne Lapkin, research vice-president at Gartner, said that although the "rudiments" of context-aware computing have been around for a while, "it is a disruptive technology that has the potential to be a real 'game changer' in terms of competitive advantage".
The different types of enterprises trying to secure a place in this growing market include handset manufacturers and web, mobile networks and social networking vendors.
In recent times, Gartner stated that 2010 will be the year that e-book readers enter the mainstream markets and become popular consumer electronic devices.