- The demand for IoT chip is expected to significantly increase in aerospace and defence as IoT technology will provide increased insights through sensors data
- APAC is expected to hold the second-largest share in the global IoT chip market in 2020
The IoT chip market is projected to reach $525.4 billion by 2025 from $370.9 billion in 2019 as per a report by ResearchAndMarkets. It also said that this market is expected to grow at a CAGR of six per cent from 2020 to 2025.
The growth of application-specific MCUs and flexible SoC-type designs, adoption of IPv6, which provides more IP address space, technologies like AI fueling IoT adoption, development of internet connectivity, and growth of low-cost smart wireless sensor networks will help to speed up growth in this sector. Concerns regarding the security and privacy of user data may hamper the growth of this market.
IoT technology in the consumer electronics segment
The report said, “The consumer electronics end-use application mainly comprises smart consumer appliances. With the evolution of consumer appliances that can connect to the Internet and smartphones, the growth of IoT technology in the consumer electronics segment is expected to receive a boost. Smart appliances, also known as intelligent appliances, have the ability to measure and control their energy usage and communicate it to homeowners and utility departments.”
It continued, “These appliances can be connected to smart energy meters or home energy management systems and can help reduce electricity usage during off-peak hours. The growth of this segment is attributed to the increase in the market of smart home appliances such as smart TVs, smart speakers, smart washing machines, and smart refrigerators.”
Increased insights through sensors data
As per the report, the demand for IoT chip is expected to significantly increase in aerospace and defence as IoT technology will provide increased insights through sensors data. It helps the government to increase the overall efficiency, safety, and control of flights. This will lead to improved maintenance as performance data can be analysed in real time. It added that ground crew and engineers can diagnose issues quickly and reduce downtime which leads to a reduction of cost.
The report stated, “IoT in the aerospace and defence segment provides connectivity and integration and equips the manufacturer with a wide-ranging view of their operations. The aerospace & defence end-use application uses sensors to capture comprehensive machine data. These sensors can be used on key equipment, machines, and vehicles. IoT offers numerous opportunities to airlines for the improvement of baggage handling and equipment monitoring.”
The report added that few consumer electronic devices, industrial application devices, and healthcare application devices consume power in the range of 1-3 W. Some of them are fitness and heart rate monitors, blood pressure monitors, blood glucose meters, continuous glucose monitors, pulse oximeters, automated external defibrillators, programmable syringe pumps, wearable injectors, and multi-parameter monitors. It added that consumer electronic devices that contribute to the 1-3 W power consumption segment include smart TVs, smart refrigerators, smart dryers, smart dishwashers, smart deep freezers, and other home automation devices.
The report said that APAC is expected to hold the second-largest share in the global IoT chip market in 2020. It added that the growing penetration of the Internet across commercial as well as residential spaces, high consumer base, increasing disposable income, and improving IT infrastructure are major reasons for the growth in this region. It further said that the adoption of cloud-based services and the rising trend of industrial automation are the key growth drivers of the IoT chip market for commercial applications in countries such as China, South Korea, and Japan.
It added, “The commercialization of the applications of the IoT is estimated to be in its introductory stages in the developing economies of APAC. However, countries such as China, India, and Japan are aggressively taking initiatives, e.g., high investments in R&D, to encourage the adoption of IoT in this region, which is expected to boost the demand for IoT chips in the future.”