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Gartner, an international research and consulting organization, said that the processing, sensing and communication semiconductor components related to the Internet of things (IOT) are bound to become one of the fastest growing areas in the semiconductor market. It is expected to grow by 36.2% in 2015, compared with the overall market size of only 5.7%. The processing function will be the main source of revenue related to the semiconductor components of the Internet of things. In 2015, the revenue will reach US $7.58 billion, while the sensor will grow the most strongly, with a substantial growth of 47.5% in 2015.
Processing function related semiconductor elements include micro controller and embedded processor, while sensing semiconductor elements include optical and non optical sensors. Alfonso velosa, research director of Gartner, said: "the number of IOT objects will reach billions, and the entire value chain, from software and services to semiconductor components, will benefit from the huge demand behind it. The objects in the Internet of things will drive the market to generate a large amount of demand for independent chips. The growth force of the Internet of things semiconductor components will come from various industries, covering consumption, industry, medical treatment, automobile and other fields. "
Internet of things related semiconductor revenue of various electronic equipment (in millions of US dollars)
(source: Gartner, October 2014)
Gartner forecasts the top 15 IOT devices with semiconductor revenue, and several interesting trends include:
Before 2020, the automobile industry will continue to play an important role in the semiconductor demand of the Internet of things. Among the 15 things with the highest semiconductor revenue, 6 are from the automobile related industry sector. Driving safety regulations, coupled with the market demand for vehicle convenience and driverless function, gradually drive a large demand for new semiconductor element chips. The so-called predictive maintenance is one of the best cases for the Internet of things to drive the transformation of automobile. As long as the use of small sensors all over the engine can improve the consumer experience, while significantly reducing the cost of consumers and car dealers.
LED lighting will win by quantity, through the function of connecting, connecting and sensing the surrounding environment, while reducing costs and realizing new state services.
Consumers who want to improve their quality of life will also play a key role in the growth of demand for the Internet of animals, which will also create more semiconductor demand. The revenue of smart TV and STB will continue to grow as their processing function demand increases and BOM cost is relatively high compared with traditional embedded objects.
As wearable devices gradually become a part of consumers’ daily life, smart glasses and smart watches will also benefit from the rising cost of bill of materials, which will drive relevant demand. For the Internet of things, energy saving has always been the real added value.
Dean Freeman, deputy director of research at Gartner, pointed out: "according to Gartner’s forecast, the revenue of IOT related semiconductors will grow by nearly 30% by 2020, and every industry you can think of will contribute to the revenue, mainly driven by a large number of low-cost components. Some people in the industry believe that this growth trend will drive the transformation of the semiconductor industry. However, further investigation found that the vast majority of IOT components are quantitative goods. In fact, low-cost components are one of the main drivers of the Internet of things. "