ResearchandMarkets recently posted a report indicating the global Internet of Things (IoT) chips market will reach $525.4 billion by 2025. The organization attributes the sector’s robust 6 percent compound annual growth rate (CAGR) to mounting interest in smart consumer electronics.
The group also offered insights into the other segments, fields, and trends that will bring IoT technology into financial maturity.
Smart Appliances Need New SoCs and MCUs
The analysis firm explained microcontroller units (MCUs), and system-on-chips (SoCs) will see increased demand as IoT systems become more pervasive. ResearchandMarkets states the technology is becoming more popular because the release of IPv6 has created more IP address space. Therefore, OEMs have more room to design and deploy connected devices. The organization noted the mounting complexity of artificial intelligence (AI) programs that can administer IoT platforms is also a major growth driver.
The company’s research indicates the consumer electronics segment will hold the largest share of the IoT market through 2025. As the public comes to enjoy the benefits offered by smart home systems, connected TVs, and internet-enabled laundry machines, IoT tech will become more commonplace. Enterprising OEMs will likely capitalize on the trend by releasing innovative products that can join existing ecosystems.
Samsung’s jaw-dropping 2020 CES presentation of a meal preparing, garden cultivating smart kitchen makes a compelling case for ResearchandMarkets’ forecast.
IoT Medical Wearables, Aerospace & Military Applications, and APAC Interest
The firm predicts connected medical devices that consume 1 to 3W will play a significant role in expanding the IoT component market sector in the next half-decade. The organization asserts increasing consumer electronics and healthcare industry buying will drive the market’s growth. ResearchandMarkets foresees rising demand for fitness, heart rate, and blood pressure wearables, as well as automated external defibrillators, programmable syringe pumps, and multiparameter monitors.
In Q1 2020, Strategy Analytics uncovered a 20 percent upswing in smartwatch sales that aligns with ResearchandMarkets medtech observation.
The Irish company’s research also indicates aerospace and military organizations will increase their IoT chip orders soon. When working in tandem, AI and embedded sensors can gather and compile vast quantities of data that can be used to identify maintenance issues and gauge performance in real-time. The cost savings organizations operating in that sector could gain from IoT networks makes the technology’s adoption inevitable.
In time, manufacturers can harness IoT platforms to produce more efficient flying vehicles that require less downtime.
Lastly, ResearchandMarkets expects the Asian-Pacific region (APAC) will be the second-largest global IoT microelectronics purchaser behind North America in 2025. The firm cites rising disposable income in the area as a driver for increased smart device acquisitions. Since the group defines APAC as including China, India, Japan, and South Korea, consumer base size also informs this insight.
In addition, the analyst group argues government funding for IoT research and development in those nations will promote the commercialization of the technology. As nationally subsidized technological advancement is one of 2020’s biggest geopolitical trends, the organization’s forecast holds water.
It seems a combination of consumer, business, and government demand will make the IoT chips market remarkably robust in a few years.