The global IoT chipset market will grow more than 13 percent annually during the period 2018-2022, according to the latest report by Technavio.
This market research report segments the global IoT chipset market into smart cities, industrial Ethernet, smart wearables, connected vehicles, and connected homes applications; and the Americas, APAC and EMEA key regions.
The smart cities segment dominated the global IoT chipset market in 2017, accounting for a revenue share of more than 47 percent. It was followed by the industrial Ethernet segment with a revenue share of over 29 percent.
APAC held the largest share of the global IoT chipset market in 2017, accounting for a market share of over 74 percent. This region will post significant growth during the forecast period.
Smart devices provide various benefits, including optimized decision-making, ease of handling emergencies, cost-cutting, remote control access, enhanced quality of living, time management, commercial benefits and better safety and security.
The increasing automation of industrial processes, mechanization of the workforce, government-driven initiatives, and rising demand for smart homes are expected to drive the market during the forecast period, a senior analyst at Technavio for semiconductor equipment said.
The introduction of NB-IoT technology is one of the major trends being witnessed in the market. The technology has revolutionized the IoT chipset market and has increased the use of IoT-based chipsets.
NB-IoT is a wireless technology, which works on the LPWA network and cannot be operated on LTE-based hardware. The introduction of NB-IoT is a key trend that could positively drive the IoT market.
Several factors such as the deployment to a wide area network, increased power efficiency, absence of a gateway for NB-IoT use, cost savings, reliability and connection to a wide range of frequencies drive the adoption of NB-IoT in the market.
NB-IoT technology will allow devices with small form factors and sensors to connect to a licensed narrow bandwidth and will ensure the transfer of data at higher rates.
The increasing popularity and growing dependence on smart devices have led to the growth of the smart device market.
Smart devices are interactive gadgets, which connect users and other devices through protocols such as Wi-Fi, Bluetooth, 4G and 3G. Smart devices include smartphones; smart wearables such as smartwatches and fitness bands; smart home appliances such as smart bulbs, smart locks, and smart thermostats; and smart automobiles. These devices serve as an interface between humans and technology and bridge the gap between the digital and physical world through IoT.