On the assumption that missing Internet of Things (IoT) standards are developed over the next several years IC Insights forecasts that web-connected things will account for 85 percent of 29.5 billion Internet connections worldwide by 2020.
The sales generated by the connectivity and sensor subsystems to enabled this IoT will amount $48.3 billion in 2014 and grow 19 percent in 2015 to $57.7 billion. By 2018, the market value of IoT subsystems in equipment and Internet-connected things is projected to reach $103.6 billion worldwide, which represents a compound annual growth rate (CAGR) of 21.0 percent from $39.8 billion in 2013 (Figure 1 ).
Figure 1. Market value of IoT function in things. (Source: IC Insights)
At the level of the ICs, discrete and sensor semiconductors that go into connectivity and sensor subsystems IC Insights reckons the value was $3.9 billion in 2014. This is set to grow by 19 percent in 2015 to $5.6 billion and rise to $11.5 billion in 2018 representing a CAGR of 24.3 percent over the period 2013 to 2018.
The annual growth figure for 2015 is considerably lower than that provided by another market forecaster Gartner Inc.
IC Insights has dubbed the largest IoT semiconductor market segment “connected cities' by which it means smart electric grids, roads, streetlights and other public infrastructure applications.
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