Chips for IoT market to grow 36% in 2015, says Gartner
Gartner is predicting a 30 percent compound annual growth rate for the IoT chip market for the period 2013 to 2020.
The move to create billions of smart, autonomously communicating objects known as the Internet of Things (IoT) is driving the need for low-power sensors, processors and communications chips. The annual market for chips for IoT already stood at about $7 billion in 2013 and is set to approach $9 billion in 2014, Gartner indicated in a chart of market growth (see below).
Gartner expects the growth to increase to 36.2 percent in 2015 taking the market to about $12.25 billion and this strong growth – which compares with single-digit percentage growth in the overall chip market in recent years – is unlikely to abate during the rest of the decade, the group said.
The processing sector, often represented by the system chip at the heart of smart objects, will the largest revenue contributor to the IoT chip forecast in 2015, at $7.58 billion (out of about $12.25 billion). However, sensors for IoT applications will see the strongest growth in 2015 at 47.5 percent.
IoT semiconductor revenue by market sector deployment (millions of dollars). Source: Gartner.
The automotive sector is likely to be driven by safety regulations, and the move towards autonomous driving which also includes vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications. LED lighting is destined to hit very large volumes due to bans on inefficient incandescent lighting and the smart light bulb opens can enable services through its capability to connect, network and sense the environment. The consumer’s immediate environment is going to change with wearables including smartwatches and smart glasses becoming part of everyday life.
"Gartner forecasts almost 30 percent growth [CAGR] through 2020 for IoT semiconductor revenue," said Dean Freeman, research vice president at Gartner., in a statement. "Some in the industry believe this growth will transform the semiconductor industry."
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