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IC Insights, a leading market research firm, has highlighted that the number of connected devices worldwide now far exceeds the number of internet users. As of the latest data, the total number of IoT-connected devices is more than six times the global online population. In 2016, the overall sales of IoT semiconductors are projected to grow by 19%, reaching $18.4 billion. Looking ahead, the IoT semiconductor market is expected to reach $29.6 billion in 2019, with a compound annual growth rate (CAGR) of approximately 19.9% from 2014 to 2019.
According to IC Insights, the five major application areas for IoT semiconductors each have their own growth trajectories. The revenue from IoT semiconductors increased by 20% in 2016, driven by rising adoption across various sectors. One key area is the automotive industry, where the "connected car" segment is experiencing rapid expansion. In 2016, the revenue for IoT semiconductors in this sector is estimated to have grown by 66% to $787 million. This has led to an upward revision of the CAGR for the period between 2014 and 2016, now estimated at 36.7%. Furthermore, the forecast for the 2019 connected car chip market has been raised from $1.4 billion to $1.7 billion.
In 2016, the overall IoT semiconductor revenue was approximately $11.4 billion, representing a 15% increase compared to the previous year. However, the growth in the "connected city" segment has been slower, mainly due to weak demand for smart meters and infrastructure applications. The CAGR for IoT semiconductor revenues in this sector between 2014 and 2016 was around 12.9%, but it is still expected to reach $15.7 billion by 2019.
The wearable technology sector also shows strong potential. IC Insights slightly adjusted its forecast, estimating that the wearable IoT semiconductor market will grow by 22% in 2016, reaching $2.2 billion. By 2019, the market is expected to expand further, reaching $3.9 billion.
Meanwhile, the "smart home" IoT semiconductor market is anticipated to grow by 26% in 2016, reaching around $545 million. The "Industrial IoT" segment is also gaining momentum, with a projected 22% growth to $3.5 billion in 2016. Over the five-year period from 2014 to 2019, the Industrial IoT semiconductor market is expected to grow at a CAGR of 25.7%, expanding from $2.3 billion to $7.3 billion. These figures reflect the increasing importance of IoT technologies across multiple industries and applications.
September 19, 2025