IC Insights has recently lowered its forecast growth rate for the IoT semiconductor sales. Semiconductor sales for IoT system functions are now expected to reach US$29.6 billion in 2019 instead of the previously projected US$31.1 billion in the same year. Although this may sound like pretty bad news for people believing in consistent exponential growth of IoT applications, actually there’s only one segment that is losing momentum.
Based on IC Insight’s criteria, the IoT market can be divided into five segments: Connected Cities, Connected Vehicles, Wearable Systems, Connected Homes and Industrial Internet. This downward revision in IoT semiconductor sales can be mainly attributed to the more pessimistic outlook on the sales growth of connected city applications. This segment includes smart electric meters and infrastructure. The CAGR of the total sales of connected city applications is now merely 12.9% between 2014 and 2019, down from 15.5% in the original forecast. Rob Lineback, senior market research analyst at IC Insights argued that this decrease is stemmed from many countries’ diminishing budgets for developing the whole system of smart meters, including China, Europe and the U.S.
References
- Jessie Shen. (September 9th, 2016). “IC Insights cuts IoT semiconductor market forecast.” DIGITIMES. Retrieved from http://www.digitimes.com/news/a20160908PR206.html
- Junko Yoshida. (September 8th, 2016). “IC Insights Trims IoT Chip Market Forecast.” EE Times. Retrieved from http://www.eetimes.com/document.asp?doc_id=1330422
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