ICs used to embed IoT functionality into a wide range of systems, sensors, and objects are expected to generate sales of US$12.8 billion in 2016, according to IC Insights.
Between 2015 and 2020, IoT integrated circuit sales are projected to rise by a compound annual growth rate (CAGR) of 13.3% compared to 4.3% for the entire IC market, which is projected to reach US$354.7 billion in four years versus US$287.1 billion last year.
A breakdown of the shipments by applications (Figure 1) show that the second-strong five-year IC sales growth rates are so expected in automotive with a CAGR of 10.3%. Meanwhile, shipments to medical electronics market are forecast to grow at a CAGR of 7.3%, while IC sales to digital TV market are expected to rise at a CAGR of 5.9%. IC chip shipments to server computer market are projected to grow at a CAGR of 5.4%.
Cellphone IC sales—the biggest end-use market application for integrated circuits—are expected to grow by a CAGR of 4.8% in the 2015-2020 period, mainly dragged down by saturation in smartphone markets and economic weakness in some developing regions. That forecast proves a huge setback, compared with a CAGR of 10.8% scored between 2010 and 2015. Meanwhile, weak and negative IC sales growth rates are expected to continue in standard personal computers, set-top boxes, touchscreen tablets, and video game consoles.
In 2016 alone, IC sales for IoT applications will climb nearly 19% from a year ago to an estimated US$12.8 billion, followed by the automotive segment increasing about 12% to US$22.9 billion, medical electronics rising 9% to US$4.9 billion, and digital TV systems growing 4% to US$12.9 billion.
IC sales growth in server computers will hit 3% in 2016 to US$15.1 billion, while sales to cellphone market is expected to rise 2% to US$74.2 billion, and set-top boxes being 2% to US$5.7 billion.
Meanwhile, standard PC integrated circuit sales are estimated to be down 5% in 2016 to US$54.6 billion while video game console IC revenues are expected to finish this year with a 4% drop to $8.9 billion and tablet IC sales are on track to decline 10% to US$12.1 billion in 2016, according to IC Insights