Enterprise and automotive Internet of Things (IoT) markets are forecast to grow 5.8 billion endpoints in 2020, representing an increase of 21 per cent from 2019.
According to Gartner findings, by the close of this year, 4.8 billion endpoints are expected to be in use, up 21.5 per cent from 2018.
Within this group, utilities will be the highest user of IoT endpoints, totalling 1.17 billion endpoints in 2019, and increasing 17 per cent in 2020 to reach 1.37 billion endpoints.
Building automation, driven by connected lighting devices, will be the segment with the largest growth rate in 2020 (42 per cent), followed by automotive and healthcare, which are forecast to grow 31 per cent and 29 per cent in 2020, respectively.
In healthcare, chronic condition monitoring will drive the most IoT endpoints, while in automotive, cars with embedded IoT connectivity will be supplemented by a range of add-on devices to accomplish specific tasks, such as fleet management.
“Electricity smart metering, both residential and commercial will boost the adoption of IoT among utilities,” said Peter Middleton, senior research director, Gartner. “Physical security, where building intruder detection and indoor surveillance use cases will drive volume, will be the second largest user of IoT endpoints in 2020.”
Next year, Middleton said the two use cases that will produce the most endpoint electronics revenue will be consumer connected cars and networkable printing and photocopying, totalling $72 billion and $38 billion, respectively.
Connected cars will retain a "significant portion" of the total endpoint electronics spending resulting from "increasing electronics complexity" and manufacturers implementing connectivity in a greater percentage of their vehicle production moving forward.
While printers and photocopiers will contribute significant spending in 2020, the market will decline "slowly" and other use cases such as indoor surveillance will rise as governments focus on public safety, according to Gartner.
“Overall, end users will need to prepare to address an environment where the business units will increasingly buy IoT-enabled assets without policies for support, data ownership or integration into existing business applications,” said Alfonso Velosa, research vice president at Gartner.
“This will require the CIO’s team to start developing a policy and architecture-based approach to support business units’ objectives, while protecting the organisation from data threats.
“Product managers will need to deliver but also to clearly and loudly communicate their IoT-based business value to specific verticals and their business processes, if they are to succeed in this crowded arena.”