And by the end of 2019, 4.8 billion endpoints are expected to be in use - up 21.5% from 2018 - according to Gartner.
Utilities will be the highest user of IoT endpoints, totalling 1.17 billion endpoints in 2019, and increasing 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 at Gartner.
Building automation, driven by connected lighting devices, will be the segment with the largest growth rate in 2020 (42%), followed by automotive and healthcare, which are forecast to grow 31% and 29% in 2020, respectively.
In healthcare, Gartner says the 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.
And similar to 2019, residential electricity smart metering, which can be used for more accurate metering and billing in the home, will be the top use case for Greater China and Western Europe in 2020, representing 26% and 12% of total IoT endpoints, respectively.
North America, in comparison, will see its highest IoT endpoint adoption in building intruder detection, such as door and window sensors, which will represent 8% of total IoT endpoints.
Gartner says North America and Greater China have the biggest market for endpoint electronics revenue – with revenue from endpoint electronics in 2020 forecast to total US$389 billion globally and concentrated over three regions - North America, Greater China and Western Europe.
These three regions will represent 75% of the overall endpoint electronics revenue. North America will record US$120 billion, Great China will achieve US$91 billion and Western Europe will come in third totalling US$82 billion in 2020.
According to Gartner, in 2020, the two use cases that will produce the most endpoint electronics revenue will be consumer connected cars and networkable printing and photocopying, totalling US$72 billion and US$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.
And 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, says 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.
“Technology providers will need 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,” Velosa concluded.