IoT chip market to grow at double digits

February 10, 2016 // By Jean-Pierre Joosting
MarketsandMarkets, in its latest report, expects the IoT chip market to grow from USD 4.58 Billion in 2015 to USD 10.78 Billion by 2022, at a CAGR of 11.5% between 2016 and 2022.

With the rapid technological advancements and the increasing dependence on technology in day-to-day lives, the Internet of Things concept has a promising future. Given the rate of proliferation of the network of wireless sensors, the increasing adoption of emerging technologies, and the mainstreaming of many smart consumer applications, Internet of Things has gained popularity across domains. The growing IoT market is the major driver for IoT chip manufacturers.

The integration of connectivity capabilities in an increasing number of devices and applications acts as a major driver for the market

Within the embedded device space, functions related to connectivity and network processing are increasingly being combined with embedded processors in applications beyond cell phones. For example, Qualcomm's Snapdragon 602A combines an application processor, GPU, DSP, GPS, 4G LTE, Wi-Fi, and Bluetooth, and is targeted for the automotive infotainment segment. Furthermore, Combo wireless connectivity chipsets with integrated NFC, Wi-Fi, and Bluetooth are expected to be used in smartphones and consumer electronic devices that would support multiple communication standards and protocols.

The wearable device application is expected to hold the largest market share and dominate the IoT chip market between 2016 and 2022 owing to the increasing adoption of wearable devices across the globe. The growing popularity of Internet of Things and the increasing adoption of smart watches and activity trackers in the consumer markets present huge opportunities for the IoT chip manufacturers. The demand for connectivity ICs and MCUs is expected to gain momentum owing to the growing wearable device market.

Internet of Things (IoT) has given rise to new segments in the automotive and transportation sector such as connected cars and intelligent transportation systems (ITS). Connected cars, along with the implementations of ITS, are expected to boost the semiconductor industry's total addressable market with the growth in sensor content and integration of MEMS, connectivity devices, and MCUs.

North America expected to hold the largest market share; APAC to grow at the