IC Insights: Global IoT Device Market Size Expected to Reach $62.4 Billion in 2015

According to the latest forecast report from market research firm IC Insights, the market size of semiconductor components related to network communication, sensing and control functions in various devices and subsystems linked to the Internet of Things (IoT) is expected to grow by 29% in 2015 to reach US$62.4 billion. IC Insights divides the IoT market into five major application areas: connected cars, connected homes, industrial Internet, connected cities and wearable devices . The agency believes that wearable devices have the strongest growth momentum.

Apple's first smartwatch, Apple Watch, officially went on sale in April 2015. This product is the main reason why IC Insights is optimistic about the growth potential of wearable devices. Although the long-term development fate of smartwatches is still controversial, whether such wearable devices will become mainstream products in the terminal market or just niche products with a short lifespan remains to be seen, but IC Insights believes that in the short term, the advent of Apple Watch - which contains many ICs, sensors and other electronic components - has driven strong growth in shipments and sales of semiconductor components for wearable Internet of Things devices .

IoT subsystem revenue forecast by application

IC Insights estimates that overall IoT-related revenue (excluding Internet servers, network infrastructure and cloud computing systems) is expected to achieve a compound annual growth rate (CAGR) of 21.1% from 2013 to 2018, reaching $104.1 billion during the forecast period. In addition, the agency also estimates that in the future, the number of "things" connected to the Internet in the IoT will grow much faster than the number of human users connected to the Internet worldwide.

In 2015, it is estimated that new connections to the Internet of Things will grow by 40%, with 574 million Internet connections connected to embedded systems, sensors, instruments, cars, controllers, cameras, wearable electronic devices, etc. In addition, statistics show that the number of IoT-linked devices grew by 45% in 2014 from 282 million in 2013 to 410 million.

IoT connections continue to grow

IC Insights expects that the number of global connected devices in the overall Internet of Things will reach 13.2 billion in 2015, and at the same time there will be about 3.1 billion human users connected to the Internet through computers, mobile phones and other systems. It is estimated that by 2020, there will be more than 25 billion systems/devices connected to the Internet worldwide, and the total number of human users of the Internet at the same time will be about 4.4 billion.

Compiled by Judith Cheng