In a report released on Monday, Gartner has revealed that the Internet of Things (IoT) processor, sensor and communications markets are expected to grow 36.2 per cent over the next year.
The research firm suggested that these three areas in the IoT market are set to grow rapidly, with processing contributing the largest revenue, estimated at $7.58bn in 2015.
Gartner expects that sensors will constitute the biggest growth area, with a 47.5 per cent increase in 2015.
“The demand for billions of things will ripple throughout the entire value chain, from software and services to semiconductor devices,” said Alfonso Velosa, research director at Gartner.
“These ‘things’ will drive huge demand for individual chips. IoT semiconductor growth will come from industries spanning consumer, industrial, medical, automotive and others,” he continued.
The biggest drivers behind these particular fields are predicted to be the automotive industry and the household consumer markets. Companies in these areas will continue to explore and develop IoT technologies and create increasingly sophisticated devices incorporating sensors, such as smart lighting and infotainment systems in vehicles.
According to Gartner, the demand for the latest semiconductors in the automotive arena will be led by modern safety criteria and convenience. Advancements which would require sensor instalments include autonomous driving, and ‘predictive maintenance,’ which lets drivers know when repairs are necessary.
“Using small sensors throughout the engine, predictive maintenance allows for a better experience for the consumer while enabling tremendous cost savings for both the consumer and the automotive dealer,” the report said.
Wearable technologies, such as smart glasses, watches and fitness readers, are also expected to be one of the biggest enablers of IoT-driven sensor revenue and growth.