IoT to drive Semiconductor industry

The semiconductor industry has witnessed remarkable growth in the past two decades, driven by rapid technological innovation led by PCs, Internet and then the emergence of mobile phones. In recent times, the rising popularity and deeper market penetration of smartphones and tablets has been the primary driving force behind the semiconductor industry growth.

According to an article on Forbes, Internet-of-Things (IoT) is seen as the next major driver of growth for the semiconductor industry. Although its parameters and standards are being established only now, it is expected to have a wide and deep impact.

The Internet of Things refers to the networking of physical objects through the use of embedded sensors, actuators, and other devices that can collect or transmit information about the objects. The exponential increase in IoT devices over time will very likely increase demand for semiconductors quite broadly.

According to Cisco Consulting Services, the IoE (includes the connection of things, people, data and processes, enabling the transformation of data into information, knowledge and wisdom) can unleash $19 trillion of economic value worldwide over the next decade by generating new innovation, revenue streams, customer experiences and improving asset utilization, employee productivity as well as supply chain and logistics operations. 

McKinsey Global Institute estimates that the impact of IoT on the global economy can be as high as $6.2 trillion by 2025. The semiconductor companies that are building Internet of Things products and applications will play an important role in the development of the market. That market, in turn, may represent a significant growth opportunity for semiconductor players.

According to Gartner and Price Waterhouse Coopers, IoT related opportunities will account for almost 34% of the total increase in semiconductor revenues forecasted across all applications- US $336 billion in 2014 to US$432 billion by 2019.

Top semiconductor companies, such as Intel, Texas Instruments, Nvidia, Qualcomm and others have already started various initiatives to leverage growth in IoT.