IoT stimulates demand for industrial semiconductors

February 11, 2017 //By Peter Clarke
The industrial chip market, traditionally a small and slow-growing portion of total semiconductor sales, will be boosted by adoption of the Internet of Things (IoT), according to market analysis firm Semico Research.

World Semiconductor Trade Statistics (WSTS) estimates the industrial market at 12 percent of total chip sales and that the industrial sector showed a compound annual growth rate of 4.8 percent over the period 2010 to 2015 as it moved from $31.9 billion to $40.3 billion in annual sales.

Semico is predicting that the industrial IoT semiconductor revenues will grow at a CAGR of 7.7 percent from 2015 to 2020 and that industrial MEMS revenues will more than double over the same period.

Semico Research segments the Industrial IoT into two markets, smart manufacturing and infrastructure. The smart manufacturing segment includes advanced process control, manufacturing process monitoring, supply chain management, ERP, and MRP.

Infrastructure is usually associated with public community projects but also includes building systems. Some of the more obvious areas of impact are expected to be in the public infrastructure services such as public lighting.

Related links and articles:

www.semico.com

News articles:

ST falls to fourth in industrial chip vendor ranking

Electronica settles into automotive, industrial, IoT roles

US market to drive industrial chip sales, says IHS

Economic recovery driving industrial chip market to 10% CAGR