The hottest share of the $34billion IOT chip semic

2022-08-12
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Carve up the US $34billion IOT chip semiconductor market! Opportunities in these five industries

the semiconductor industry has penetrated all aspects of our life, from alarm clocks, microwave ovens to notebooks. Now, IOT technology is providing new opportunities for innovation and growth for the global semiconductor market

at present, semiconductor enterprises are facing a key fork in the road: product performance is nearly peak, high competition and continuous industrial transfer make profit space continuously compressed, and disruptive technology is reshaping value distribution

there must be opportunities under the challenge. IOT technology, which has a definite market prospect and is extremely huge, is becoming an important solution for semiconductor enterprises to ensure revenue growth

in this issue of smart internal reference, we recommend the global semiconductor industry IOT report from Deloitte to analyze IOT solutions in the industrial semiconductor, automotive semiconductor, smart city semiconductor, medical and health semiconductor and consumer semiconductor markets under market pressure

the following are the dry goods presented by intelligent internal reference finishing:

IOT strategy of semiconductor enterprises

IOT technology is expected to reduce costs and increase efficiency for the semiconductor industry with weak growth; At the same time, data from devices and sensors is expected to bring added value across industries, help enterprises gain insight into new models, find problems faster and more accurately, and improve production. In the healthcare and automotive industries, this means saving lives

according to Gartner's analysis, the IOT semiconductor market will expand to $34billion in 2020; At the same time, the expenditure on IOT electronic solutions (referring to the existing market) will be transformed into an opportunity of $572billion (excluding equipment sales)

of course, the market opportunities of semiconductor enterprises must be matched with market strategies for their own products. They can no longer simply regard themselves as component suppliers, but should understand the stack requirements of the whole IOT from a more holistic ecological chain perspective and seek value positioning

simply put, the value positioning of semiconductor enterprises in the stack in the era of IOT can be divided into four key links: sense, analyze, interaction (communica rotatable oil return valve TE) and security

although the market opportunity seems great, semiconductor enterprises involved in the IOT field still face many challenges, including the rapidly changing fragmented market and the security and privacy issues of specific markets. In this regard, Deloitte has put forward five strategic suggestions:

1. Establish a business ecosystem

in order to provide end-to-end IOT solutions, we need equipment manufacturers, communication hardware, connection protocols, cloud providers, IOT platforms, analysts and system integrators. In addition, IOT is an emerging and fragmented market with different end-user needs

a company cannot have all the technologies. The essence of IOT market requires an ecosystem of companies with a common vision and complementary assets and skills

semiconductor companies can build such an ecosystem and strive to gain control, because they can structure and help catalyze, enable and manage the entire solution jointly developed by ecosystem partners

2. Enabling ecosystem partners

a sustainable partner ecosystem has created a win-win situation for all relevant parties. In order to form a successful ecosystem, semiconductor companies should understand, develop and cultivate partners to achieve their growth. This may require technical, business and financial support

semiconductor companies may also need to adjust their product strategies

in addition to making trade-offs between energy, function, form factors and security, semiconductor companies should also consider the characteristics or products of IOT ecosystem partners, including software development kits (SDKs) tailored for IOT developers, or communication systems, analysis applications and system integration services that can easily connect to the cloud platform

3. Create a digital sales platform

the best way to establish a business ecosystem is to focus on a specific customer case. However, the IOT market is oriented to decentralized end users, that is, vertical needs and use cases in different industries

facing such a broad and fragmented market, ecological construction is almost impossible without more digital platforms to bring together providers of different components of end-to-end solutions

for example, an intelligent opportunity management will help identify opportunities and determine which partners can participate in the transaction, whether they are cloud platform operators, data service operators, application and analysis developers, third-party system integrators or consultants. Such integrated transactions may allow semiconductor companies to cover a large number of market segments in today's highly dispersed IOT market, bringing them obvious advantages and giving their customers a single point of contact

4. Ensure security and privacy

security and privacy can determine or destroy the adoption of IOT products

challenges in this area include not only hardware weaknesses, but also security vulnerabilities created during the integration and implementation of IOT systems and remote device access, communication and management

features and solutions to alleviate these problems usually include software based API security. This security measure can verify and authorize data movement between devices. Create a trusted hardware based platform and implement strategies to ensure the authenticity of firmware. Use the built-in encryption module with public key infrastructure and multifactor authentication access

to ensure coverage, all these activities should not be carried out separately. Work with partners to identify and resolve potential security issues

5. Customized industries need

in addition to these common themes, the nuances of each vertical field require specific products and market strategies. To sell products to these markets, it is important to understand what customers want to achieve

semiconductor companies should pay special attention to the following markets: industry, automobile, smart city, health care and consumption. Let's have a deep understanding of these industries, the market opportunities of semiconductor companies, and how to win

five IOT opportunities for semiconductors

Hot industrial semiconductors

the industrial semiconductor industry has grown to $33billion in 2015 and is expected to grow to $49billion by 2020, with a compound annual growth rate/CAGR of 9.8% (about twice the total growth of semiconductors)

among the $49 billion, the sales of IOT semiconductor was $8.4 billion. If semiconductor companies can take advantage of the IOT products and services required by customers and seize the wave of the fourth industrial revolution, this field will mean a lot of opportunities

specifically, the IOT opportunities of industrial semiconductors mainly include asset performance management (APM, i.e. efficient allocation of resources using analytical technology), predictive maintenance (PDM), etc. To stand out in this wave, enterprises should develop IOT platforms and establish analysis alliances

automotive semiconductor oriented pricing model

from 2001 to 2015, the revenue of the automotive semiconductor industry increased from 10billion to 30billion US dollars. It is estimated that this half of the conductor industry will grow to US $47billion in 2020, with a compound annual growth rate of 9.2%, and the growth rate is higher than the average level (similar to the opportunity of the industrial market, don't you know?)

this is driven by the rise in the electronic content of cars and the popularity of electronic functions from high-end models to low-cost, high-yield models. Of this expenditure, it is expected that $10.5 billion will be contributed by IOT applications

specifically, the IOT opportunities of automotive semiconductors mainly include autonomous driving (and the added value brought by relevant sensor data), infotainment systems, asset performance management (APM) and predictive maintenance (PDM). To stand out in this wave, enterprises should integrate into the automotive built-in module system, strengthen the consulting ability, and establish cooperative relations in management services

smart city semiconductor aimed at high efficiency

by 2050, urban residents are expected to account for two-thirds of the world's population. Smart city solutions have great potential to improve citizens' lives, make transportation more convenient, reduce waste and large-scale pollution, reduce energy consumption, and prevent threats

smart city solutions are composed of electronic and software systems that enable urban assets to be more aware of and respond to their environment. Typical applications are urban management, building management, energy management, infrastructure management, social security management and agricultural management

the expenditure of smart city terminal hardware in 2016 was $289billion, which can be estimated to reach $463billion in 2020, or a compound annual growth rate of 12.7%; Accordingly, the sales scale of semiconductor equipment in smart city in 2016 was US $613 million, which can be estimated to reach US $1.2 billion in 2020

the growth of smart city semiconductors is mainly driven by the need to increase connectivity, improve infrastructure and optimize energy consumption. Existing smart city applications range from highly customized niche solutions, such as coping with specific climate threats to the region, to common and highly concerned problems in many cities, such as smarter parking

to stand out in this wave, enterprises should build a perfect ecosystem, including hardware manufacturers, communication equipment manufacturers, network operation agreements, cloud service providers, IOT platforms, analysts and system integration service providers

medical and health semiconductors focusing on micro

the proportion of U.S. health care expenditure in GDP is expected to increase from 17.8% to 19.9% in 2025; By 2021, U.S. healthcare IT spending will reach $137billion, with a compound annual growth rate of 12.5%; In 2020, healthcare providers and health/fitness consumers will spend $4billion and $14billion on electronic content, respectively, of which semiconductor devices will total $817million

the growth of healthcare IOT is mainly driven by remote health monitoring, workflow optimization and integration with electronic medical records (EMRs). The insurance company is the payer and the government is the regulator. They jointly promote the success of the health care IOT to improve the overall health status and reduce health care expenditure

the main driving force for the growth of medical and health semiconductors comes from remote health monitoring and workflow optimization. To stand out in this wave, enterprises should seek higher profit margins to adapt to the longer market and life cycle, and jointly build industry standards with partners to ensure reliability and safety

consumer semiconductors in pursuit of interest

the revenue of consumer semiconductors in 2015 was $36billion, which is expected to increase to $45billion by 2020, with a compound annual growth rate of 6.4%

from the perspective of IOT, the semiconductor revenue is currently about US $7.8 billion, and it is expected to increase to US $13.1 billion by 2020. It is worth noting that most of the growth came from positive pricing pressure, rather than volume growth, which is expected to grow by about 2.3% in the same period of time

the growth of the volume of consumer semiconductors is mainly driven by more and more micro components and sensors, which enable devices to perceive and analyze the surrounding environment. In addition, the value of consumer IOT also lies in the collected

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