Gartner Research

Forecast Analysis: Internet of Things — Endpoints, Worldwide, 2016 Update

Published: 10 February 2017

ID: G00302435

Analyst(s): Peter Middleton


Endpoints of the IoT will grow at a 33% CAGR from 2015 through 2020, reaching an installed base of 20.4 billion units, with almost two-thirds of them consumer applications. Spending on networked consumer and business endpoints will displace non-networked, growing at a 20% CAGR to $2.9 trillion.

Table Of Contents
  • Overview
  • Companion Documents

Forecast Data

Market Impact

  • Overall Market Penetration
  • Total Installed Base of 20 Billion Endpoint Units in 2020
    • Machines Are a Key Part of the IoT
    • Highest Growth in Adoption in Cross-Industry Category
    • Familiar Products Drive Consumer Adoption
  • IoT Endpoint Unit Shipments Approach 6.5 Billion in 2020
    • Cross-Industry Shipment Growth Peaks in 2018
  • Regional Variation in Shipments
  • Total Hardware Spending Approaches $3 Trillion in 2020
    • Consumer and Cross-Industry Spending Growth Driven by Automotive
  • Regional Variation in Spending
  • 220 Million Connected Cars on the Road in 2020
  • Variation in Installed Base by End-Use Subcategory
    • Information and Entertainment Leads Consumer Use in 2020
    • Two-Thirds of Cross-Industry Deployments Driven by Physical Security, Energy and Facilities Automation/Other
    • Modernization Will Drive Upgrades in Vertical-Specific Products
  • Variation in Spending by End-Use Subcategory
  • Top Applications by Category: The Internet of Very Different Things
    • Top Consumer Endpoint Types
    • Top Cross-Industry Endpoint Types
    • Top Vertical-Specific Endpoint Types
  • Manufacturers Face Pricing Pressure, Particularly in Consumer Products


  • Market Penetration
    • LEDs
    • Cross-Industry Use of IoT
    • Vertical-Specific Use of IoT
    • Consumer Use of IoT
  • Unchanged Assumptions


  • Definitions
    • IoT
    • Operational Technology
    • Smart City
    • Implications of the IoT Definition
    • IoT Unit Forecasts

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