Research Predicts Overwhelming Growth for IoT Devices
The Internet of Things (IoT) is in its early stages, but already there is significant revenue to be attained in the components segment of the market. BCC Research has determined that the total market for IoT devices and chipsets is expected to increase from nearly $4.2 billion in 2014 to close to $49.2 billion in 2020, growing at a compound annual growth rate (CAGR) of 49.3%. IoT devices are expected to account for an overwhelming percentage of this growth, increasing at a CAGR of 49.5% from $4 billion in 2014 to almost $48.4 billion in 2020. The IoT chipset industry will grow at a somewhat lower CAGR of 36.3%, primarily attributed to falling prices of chipsets over the forecast period.
“The IoT market is booming but lacks clear direction, and many companies are trying to come up with their own solutions,” said Anand Joshi, research analyst. “Top players such as Google, Samsung, and Apple are creating products for which they see a market, whereas many start-ups are coming up with novel ideas for technology adoption. The race is on to become vendor of choice. The nature of IoT applications is limited only by one’s imagination.”
Characterized broadly as IoT devices, these components include the ubiquitous sensors in all connectivity applications, as well as other connectivity-enabled devices such as smartphones. The report also addresses the key subcomponents, the chipsets that comprise IoT devices. When added together, all these categories constitute a clear market for product manufacturers and service providers to target and take advantage of IoT growth.