The enterprise and automotive Internet of Things (IoT) market is expected to grow to 5.8 billion endpoints in 2020, according to Gartner.
The research firm forecasts that by the end of 2019, the use of IoT endpoints will reach 4.8 billion worldwide, up 21.5% from 2018.
The utilities segment will remain the highest user of IoT endpoints due to its increased adoption in smart electricity meters. This segment will total to 1.17 endpoints in 2019, and then increase 17% in 2020 to reach 1.37 billion endpoints.
“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,” he said.
The building automation technology market is continuously growing and anticipated to have the largest growth rate by the year 2020 (42%). The growth of this segment is driven by connected lighting devices.
Following building automation technology, the automotive and healthcare sector will grow 31% and 29% respectively in 2020. In healthcare, the need to deliver a more connected with patient centric approach will drive the most IoT endpoints, while in automotive, cars with IoT connectivity will be offered by several add on devices to accomplish specific tasks, like fleet management.
Connected cars are expected to retain a significant portion of the overall endpoint electronics spending.
In terms of revenue, the endpoint electronics will dominate the global market with total $389 billion revenue, concentrated over three regions: North America, Greater China and Western Europe.
Here, North America is anticipated to be the leading contributor to the global market revenue with 75% ($120 billion) of the overall endpoint electronics revenue, followed by Great China ($91 billion), and Western Europe ($82 billion) in 2020.
With businesses increasingly buying IoT devices driven by digital transformation initiatives, CIOs will have to prepare themselves to address this environment while developing a policy and architecture-based approach to protect the organization from data threats.
READ NEXT: Amazon holds nearly half of IaaS market share, while Alibaba witnesses highest growth: Gartner
