IoT Analytics Predicts Rise of the IoT Semiconductor

Smart Blog

IoT Analytics Predicts Rise of the IoT Semiconductor

The penetration of semiconductor components classified as “IoT” is expected to grow from 7% in 2019 to 12% by 2025, IoT Analytics, a leading provider of market insights and competitive intelligence for the Internet of Things (IoT) and Industry 4., claims in a new report.

The increasing penetration of IoT semiconductors is expected to necessitate chipmakers to put an enhanced focus on typical IoT requirements (e.g., ultra-low power, smaller form factor, built-in security).

Most notably, the industry has profited from the need for more and higher-value semiconductor components for several newly emerging technologies. Key drivers include big data analytics, mobile communication, gaming, connected and semi-autonomous cars, and to a large degree, the fast growth of connected Internet of Things (IoT) devices,

Satyajit Sinha, senior analyst at IoT Analytics, said. IoT Analytics Predicts Rise of the IoT Semiconductor

According to our estimates, the number of active IoT device connections grew from 3.6 billion in 2015 to 11.7 billion in 2020. By the end of 2025, we forecast a total of 30 billion IoT connections. The rise of the IoT semiconductor market is broad and touches most industry segments, including industrial, automotive, energy and utilities, and healthcare.

The Philadelphia Semiconductor Index, which tracks the value of the 30 largest semiconductor firms globally, increased by a factor of 5x in the last five years (from $80 in Jan 2016 to $416 in Jan 2021). The index not only handily beat the high-flying Nasdaq index (which increased by a factor of 2.8 in the same timeframe) but also other technology indices, such as cloud computing (e.g., the SKYY Index increased 3.5x in the same timeframe). This staggering performance of value in semiconductor firms can be attributed to many factors. Most notably, the industry has profited from the need for more and higher-value semiconductor components for several newly emerging technologies. Key drivers include big data analytics, mobile communication, gaming, connected and semi-autonomous cars, and to a large degree, the fast growth of connected Internet of Things (IoT) devices.

Author: Tim Cole
Image Credit: Pixabay

Leave a Reply

Your email address will not be published. Required fields are marked *

*