Gartner Research

Market Trends: Application Processor Vendors Need Tailored Strategies for Fragmented IoT Applications

Published: 28 April 2017

ID: G00321362

Analyst(s): Jon Erensen , Roger Sheng


The IoT endpoint market is becoming the next growth opportunity for application processor vendors after smartphones and tablets. Technology strategic planners should prepare for fragmented IoT markets.

Table Of Contents


Market Trend

  • Consumer-Facing IoT Endpoints Will Be the Major Target Market
  • AP Vendors Should Understand the Complex Requirements From the IoT Market
    • Connected Devices Leverage Established Apps and a Content Ecosystem Run on Android, Linux or iOS
    • New Emerging IoT Endpoints Require a More Friendly Development Environment and Easy-to-Access Engineering Resources
    • IoT Endpoints for Enterprise Use Require Industry-Proven Solutions
    • Security Will Be the Essential Requirement for AP Vendors
  • New Innovative IoT Applications Will Mostly Happen in the Regions Where Development of the Internet Is Ahead of Social Economic Conditions (Historical Burden of Adopting New Technology)
  • Artificial Intelligence Will Be the Essential Part for APs

Contrarian View

  • If the IoT Keeps Fragmenting, AP Vendors Will Struggle to See the Return From Investment

Vendors to Watch

  • Qualcomm
  • MediaTek
  • Texas Instruments
  • Nvidia

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