Gartner Research

Market Insight: Semiconductor Vendors Need a Two-Pronged Strategy Approach to Monetize IoT Solutions

Published: 27 January 2016

ID: G00291925

Analyst(s): Nathan Nuttall


Semiconductor vendor leaders should be well down the path to creating or executing a long-term IoT strategy — but many are not. It is imperative that vendors both develop a holistic business strategy and evolve existing business models to increase differentiation and profitability.

Table Of Contents


  • Why an IoT Strategy Is Essential

Background and Context

  • The IoT Opportunity

The Impact

  • Strategic Business Model Options for Semiconductor Vendors Pursuing IoT
    • Low-Cost Producer
    • Custom or Semicustom
    • Hardware Innovation
    • Platforms/Solutions
    • Monopoly Hardware
    • IP Portfolio/Royalty Model
    • Commodity Hardware
  • Technology Differentiation in IoT
    • Security
    • Features
    • Time to Market Through Software and SDKs


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