Fix Your Memory Module
 
Home
News
Products
Shop
Memory
Corporate
Contact
 

News
Industry News
Publications
CST News
Help/Support
Member Area
Tester Brochure
Demo Library
Software
Tester FAQs

biology medicine news product technology definition

Thursday, October 19, 2017
Memory Industry News
Email ArticlePrinter Format PreviousNext

IoT market to hit $400 billion


Monday, June 09, 2014

According to Yole Developpement, the annual market for Internet of Things hardware will significantly expand in the next few years but is set to drop as high volumes and competitive pressure drive average selling prices (ASPs) down faster than volumes increase. The market research firm added that one long-term result is likely to be the merging of companies and activities in vertical integrated enterprises to capture value from IoT-related services.

Yole has produced a report on technologies and sensors for IoT that looks forward ten years and sees the IoT equipment market going from an annual value of $9.5 billion in 2014 to $70 billion in 2018 before falling back to $46 billion in 2024. This is partly because in the second period IoT deployments will become smaller but more swarm-like, Yole predicted. However, it is also because value in IoT will migrate to software and services.

Yole predicts the annual value of the overall IoT market in 2024 will be $400 billion with $46 billion coming from hardware, $59 billion from cloud infrastructure and $296 billion from data processing services. That data processing will represent 15 per cent of all data processing on the planet, Yole claimed.

That the value of IoT is tied up in data services is understandable when it is considered that the main purpose of IoT is to make sensing ubiquitous at very low cost resulting in extremely strong price pressure on electronic component manufacturers. Nevertheless, the next five years will be extremely fruitful for device makers and is the time when manufacturers must stake a claim to IoT business.

IoT is a multi-billion dollar market emerging from the convergence of several established markets, such as industrial sensors, wearable electronics and home automation and from three categories of supplier; the electronics components, communications and data storage companies, and service companies. Companies are positioning themselves including Bosch Connected Devices and STMicroelectronics, Oracle, Amazon, Google and Facebook.

Just as there is expected to be price pressure in the components sector so to in data storage despite large investments needed to house the data. Yole added that a price war has begun between the major cloud computing companies cutting prices while growing capacity.

"Service companies will be the big winners in this field. In order to secure some of this value, hardware and cloud companies will have no choice but to try and integrate themselves vertically in order to valorise themselves and the data they'll be responsible for," said Guillaume Girardin, Yole analyst and one of the co-authors of the report.

By: DocMemory
Copyright © 2014 CST, Inc. All Rights Reserved

Email ArticlePrinter Format PreviousNext
Latest Industry News
Nanya would rather concentrate on server market DRAM10/18/2017
Semiconductor shipment to break record of 11.448 billion sq. inches10/18/2017
Microchip ‘SuperFlash’ memory offers 64Mbit with reduced power consumption10/18/2017
New partnership in MRAM developement10/18/2017
Market outlook for NAND remains unchanged regardless of glitch at Toshiba10/17/2017
SMIC appointed new executives10/17/2017
China plans to double its 12 inch capacity in 201810/17/2017
Toshiba eager to close the Bain deal while WD is still fighting10/17/2017
Samsung Electronics CEO resigned10/16/2017
DRAM manufacturers stock rises10/16/2017

CST Inc. Memory Tester DDR Tester
Copyright © 1994 - 2017 CST, Inc. All Rights Reserved