IoT’s processing, sensing and communications semiconductor device segment set to experience rapid growth.
A new report from Gartner projects that the internet of things (IoT) semiconductor revenue is expected to grow by 30% through 2020.
Gartner research vice president Dean Freeman said: "Gartner forecasts almost 30 percent growth through 2020 for IoT semiconductor revenue.
"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."
Of the overall semiconductor market, the processing, sensing and communications semiconductor device segment of IoT is projected to be a rapidly growing segment, with 36.2% growth next year, latest Gartner report noted.
Gartner research director Alfonso Velosa said: "The demand for billions of things will ripple throughout the entire value chain, from software and services to semiconductor devices.
"These ‘things’ will drive huge demand for individual chips. IoT semiconductor growth will come from industries spanning consumer, industrial, medical, automotive and others."
The report adds that processing will be the highest contributor to IoT in terms of revenues at $7.58bn in 2015, with sensors witnessing the strongest 47.5% growth during the year.
Further, automotive, LED lighting and home consumer segments are set to capture a huge chunk of the overall semiconductor growth through 2020.