IoT devices offer huge potential for component manufacturers

LYON, FRANCE: From $9.5 billion in 2014 to $46 billion in 2024, the Internet of Things (IoT) device market will represent close to 15 percent of all data processing.

"IoT devices offer huge potential for electronic component manufacturers, but this is clearly not where the value will stop. Most of the added value in IoT solutions will come from the processing of the generated data," explains Dr Eric Mounier, senior technology and market analyst at Yole Développement. "In fact, the ratio between electronic components and data processing can reach 1:50 in certain long-term cases!"

The IoT is a multi-billion dollar market emerging from several different markets (i.e. industrial sensors, wearable electronics and home automation) which will see strong convergence in the next five years. Three industrial and service sectors will be integral to the valorization of this new market:

* The electronics industry, which will manufacture the sensing devices.

* The communication and cloud data storage industry, which will handle data transmission, storage and processing.

* Service companies, which will valorize the data either through processing or by selling to a third party.