Texas Instruments                  7.9%
Infineon Technologies            6.6%
Intel                                         5.2%
STMicroelectronics                 5.1%
Analog Devices                       3.7%
NXP Semiconductors              3.5%
Nichia                                      2.8%
Micron Technology                 2.3%
On Semiconductor                  2.0%
Renesas Electronics                1.8%
Top 10 Total                            40.9%
Others                                     59.1%

The industrial chip market was worth $42.2 billion in 2016, up about 4 percent from $40.7 billion in 2015, according to Semicast. TI remains on top of the ranking as it has been since 2012 after its acquisition of National Semiconductor.

Semicast defines the industrial chip market as factory automation, motor drives, lighting, building automation, test & measurement and power and energy, as well as medical electronics and industrial transportation; the aerospace and defense sector is excluded from the analysis.

Analog Devices acquisition of Linear Technology Corp., which closed in March 2017, is likely to push it up to third position alongside Intel, while Renesas’s acquisition of Intersil in February 2017 could take it above On Semi in 2017. Clearly there is time for more M&A to have an impact.

Semicast also divides the market into more traditional semiconductor deployments, which it labels ‘real world” and semiconductor deployments related to digitization and networking which it labels ‘machine world.’

The real world includes measurement, movement, sense and indicate and corresponds to the semiconductor product categories of analog, optoelectronics, power & discretes and sensors. The machine world incudes authentication, control, process, store and communication, which correspond to the product categories of logic, memory, microcontrollers, DSPs and microprocessors.

Next: Which is growing faster?

On this analysis real world demand accounted for approximately two-thirds of revenues in 2016, according to Semicast. What is more the real-world market is expected to grow at compound annual growth rate (CAGR) through to 2021, compared with a CAGR of just over 5 percent for machine world industrial chip sales.

“Prepare to watch the term ‘IoT’ fade slowly from a slide deck near you,” said Chris Barnden, principal analyst at Semicast Research, in a statement.

Related links and articles:

News articles:

IoT to boost industrial semiconductors

Bosch and IBM collaborate on Industrial IoT

TI leads industrial chip vendor ranking


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