Gartner Research

Market Trends: Chip Vendors Targeting the IoT Market Need a Software Strategy to Drive Revenue Growth

Published: 08 April 2014

ID: G00262335

Analyst(s): Ganesh Ramamoorthy

Summary

Embedded software and middleware components are critical to the deployment of the Internet of Things. Chip vendors targeting the IoT market will need a strong software strategy — and new partnerships with software and components suppliers — to drive chip revenue growth.

Table Of Contents

Introduction

Market Trend

  • The IoT Is a High-Volume, Low-Value Opportunity for Chip Vendors
  • Embedded Software and Middleware Are Key to Gaining IoT Revenue Share
  • Market Structure Trend
    • Chip Vendors Need a Strong IoT Software Strategy
    • Partnering With SIs Is Critical for Chip Vendors

Contrarian View

  • Enough Scope to Differentiate Hardware — Chip Vendors Don't Need Software

Vendors to Watch

  • Engineering Service Providers and SIs
    • Key Vendors
    • Key Capabilities
    • Key Trends
  • Chip Suppliers
    • Key Vendors
    • Key Capabilities
    • Key Trends
  • Equipment Manufacturers
    • Key Vendors
    • Key Capabilities
    • Key Trends

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