Automotive, LED Lighting and Home Consumer Segments to Drive a Huge Portion of Overall Semiconductor Growth Through 2020
The processing, sensing and communications semiconductor device portion of the Internet of Things (IoT) will be a rapidly growing segment of the total semiconductor market, growing 36.2 percent in 2015, compared with the overall semiconductor market growth of 5.7 percent, according to Gartner, Inc. Processing will be the largest revenue contributor to the IoT "things" semiconductor device forecast, at $7.58 billion in 2015, while sensors will see the strongest growth, with 47.5 percent growth in 2015.
The processing semiconductor device segment consists of microcontrollers and embedded processors, while the sensing semiconductor segment includes optical and nonoptical sensors.
"The demand for billions of things will ripple throughout the entire value chain, from software and services to semiconductor devices," said Alfonso Velosa, research director at Gartner. "These 'things' will drive huge demand for individual chips. IoT semiconductor growth will come from industries spanning consumer, industrial, medical, automotive and others.” (see Figure 1)
Figure 1. IoT Semiconductor Revenue by Electronic Equipment (Millions of Dollars)
Source: Gartner (October 2014)
Gartner's forecast for the top 15 things, based on semiconductor revenue, highlights some very interesting trends:
"Gartner forecasts almost 30 percent growth through 2020 for IoT semiconductor revenue," said Dean Freeman, research vice president at Gartner. "This revenue spans every conceivable industry and is driven by the immense scale of low-cost devices. Some in the industry believe this growth will transform the semiconductor industry. However, further investigation shows that the majority of IoT devices are commodity offerings. The truth is that inexpensive devices are one of the biggest enablers of IoT."
More detailed analysis is available in the report “Forecast Analysis: IoT Endpoints — Sensing, Processing and Communications Semiconductors, Worldwide, 2014 Update." The report is available on Gartner's website at http://www.gartner.com/document/2884217.
Analysts will unveil the new Gartner IoT forecast at the Gartner Symposium/ITxpo 2014, November 9-13 in Barcelona, Spain. For more information about the conference please visit www.gartnerevent.com/eu/sym. Press can register by contacting Laurence Goasduff at firstname.lastname@example.org.
About Gartner Symposium/ITxpo
Gartner Symposium/ITxpo is the world's most important gathering of CIOs and senior IT executives. This event delivers independent and objective content with the authority and weight of the world's leading IT research and advisory organization, and provides access to the latest solutions from key technology providers. Gartner's annual Symposium/ITxpo events are key components of attendees' annual planning efforts. IT executives rely on Gartner Symposium/ITxpo to gain insight into how their organizations can use IT to address business challenges and improve operational efficiency.
Follow news, photos and video coming from Gartner Symposium/ITxpo 2014 on Gartner News at www.gartnernews.com, on Twitter at www.twitter.com/Gartner_inc and using #GartnerSYM, Facebook at http://www.facebook.com/GartnerSymposium and Linked In at https://www.linkedin.com/groups?gid=1893287.
To register for an upcoming Symposium/ITxpo event, please go to:
November 9-13 , Barcelona, Spain: www.gartner.com/eu/symposium
November 17-20, Gold Coast, Australia: www.gartner.com/au/symposium
Gartner, Inc. (NYSE: IT), is the world's leading research and advisory company and a member of the S&P 500. We equip business leaders with indispensable insights, advice and tools to achieve their mission-critical priorities and build the successful organizations of tomorrow.
Our unmatched combination of expert-led, practitioner-sourced and data-driven research steers clients toward the right decisions on the issues that matter most. We're trusted as an objective resource and critical partner by more than 15,000 organizations in more than 100 countries—across all major functions, in every industry and enterprise size.
To learn more about how we help decision makers fuel the future of business, visit www.gartner.com.
Comments or opinions expressed on this blog are those of the individual contributors only, and do not necessarily represent the views of Gartner, Inc. or its management. Readers may copy and redistribute blog postings on other blogs, or otherwise for private, non-commercial or journalistic purposes. This content may not be used for any other purposes in any other formats or media. The content on this blog is provided on an "as-is" basis. Gartner shall not be liable for any damages whatsoever arising out of the content or use of this blog.