IoT semiconductor market is broad and touches most industry segments
The global IoT semiconductor component market will grow from $33 billion in 2020 to $80 billion in 2025 that is a compound annual growth rate of 19 per cent, as per a new report by market insights firm IoT Analytics.
Classified as IoT, the penetration of semiconductor components is expected to grow from 7 per cent in 2019 to 12 per cent by 2025, the report said.
Microcontroller units (MCUs), connectivity chipsets, Artificial Intelligence (AI), security chipsets and modules are the key components, which will drive this IoT semiconductor growth.
To put an enhanced focus on typical IoT requirements, the increasing penetration of IoT semiconductor will necessitate the chipmakers, for example, ultra-low power, smaller form factor and built-in security.
Big data analytics, mobile communication, gaming, connected and semi-autonomous cars, and to a large degree, the fast growth of IoT devices are the key drivers, said the report.
The number of active IoT device connections grew to 11.7 billion in 2020 from 3.6 billion in 2015, as per an estimate by the firm.
The forecast is that the numbers could grow to a total of 30 billion by the end of 2025.
Including industrial, automotive, energy and utilities, and healthcare, the rise of the IoT semiconductor market is broad and touches most industry segments.
There has been a high demand in recent years particularly for consumer IoT devices like smart watches and smaller wireless accessories that has prompted several companies including some smartphone makers that were not making IoT devices a few years ago to move into the IoT ecosystem.
The report said that there will be a continuity to drive the IoT semiconductor market by the current IoT device explosion and will likely lead to further semiconductor innovations amid higher production volumes.