IoT will give ’embedded’ a shot in the arm
The sales generated by the connectivity and sensor subsystems to enabled this IoT will amount $48.3 billion in 2014 and grow 19 percent in 2015 to $57.7 billion. By 2018, the market value of IoT subsystems in equipment and Internet-connected things is projected to reach $103.6 billion worldwide, which represents a compound annual growth rate (CAGR) of 21.0 percent from $39.8 billion in 2013 (Figure 1).
Market value of IoT function in things. Source: IC Insights
At the level of the ICs, discrete and sensor semiconductors that go into connectivity and sensor subsystems IC Insights reckons the value was $3.9 billion in 2014. This is set to grow by 19 percent in 2015 to $5.6 billion and rise to $11.5 billion in 2018 representing a CAGR of 24.3 percent over the period 2013 to 2018.
The annual growth figure for 2015 is considerably lower than that provided by another market forecaster Gartner Inc. (see Chips for IoT market to grow 36% in 2015, says Gartner
IC Insights has dubbed the largest IoT semiconductor market segment "connected cities’ by which it means smart electric grids, roads, streetlights and other public infrastructure applications.
The second-largest semiconductor IoT category – the industrial Internet – will catch up with the connected cities group, primarily due to high growth in factories, logistics, and medical systems applications.
Semiconductor revenues for connected homes will be more than $1 billion in 2018 with a CAGR of 32.8 percent from just $275 million in 2013. Connected automotive systems represent a high growth potential between 2013 and 2018 with annual semiconductor sales forecast to reach $1.5 billion worldwide, which represents a CAGR of 43.8 percent through 2018. Semiconductor sales for wearable systems that connect to the Internet are projected to climb by a CAGR of 46.9 percent to $528 million in 2018 from about $76 million in 2013.
IoT semiconductor sales by system segments. Source: IC Insights.
ICs used in connections to the Internet of Things represented only 1 percent of total integrated circuit sales in 2014. In 2018, IoT-related ICs are expected to account for about 3 percent of the total $348.1 billion IC market that year.
Related links and articles:
News articles:
Industrial wireless sensor market to experience long term growth
Chip market for wireless sensor networks on 23% CAGR
Chips for IoT market to grow 36% in 2015, says Gartner
Yole predicts IC price pressure in IoT roadmap
Gartner puts a number on IoT in 2020
Freescale takes the broad view of IoT/M2M
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