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in 8086 architecture there are 16 bit data lines and 20 address lines.
20 lines means 2^20 byte = 1 mega byte
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All internal registers, as well as internal and external data buses, are 16 bits wide, which firmly established the "16-bit microprocessor" identity of the 8086. A 20-bit external address bus provides a 1 MB physicaladdress space (220 = 1,048,576).

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In 8086 architecture there are 16 bit data lines and 20 bit address lines.
16 bit data lines means that the word size must be 2 bytes and these 2 bytes can be read in a single memory cycle.
20 bit address lines corresponds that the memory size is 220 Bytes = 1 Megabyte
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