Increasing Edge Intelligence and Connectivity to Drive Intelligent Systems Volumes through 2020; IDC Forecasts Intelligent Systems Revenue to Exceed $2.2 Trillion In 2020
17 May 2016
SAN MATEO, Calif., May 17, 2016 – Intelligent Systems at the edge will continue to grow as processors and connectivity are embedded into a plethora of previously unconnected devices, according to a new forecast, Worldwide Embedded and Intelligent Systems 2015-2020 Market Forecast, from International Data Corporation (IDC). The report forecasts that intelligent systems will log a compound annual growth rate (CAGR) of 7.2% from 2015-2020 with revenues exceeding $2.2 trillion in 2020.
"The vision of intelligent connected systems is real and far-reaching," said Mario Morales, program vice president, Enabling Technologies and Semiconductors at IDC. "The IT (Information Technology) and OT (Operational Technology) industries are moving beyond the Internet of Things (IoT) buzz and are now deploying intelligent systems in specific markets like retail, industrial automation, automotive systems, and directly in our homes. Despite IT vendors and technology suppliers maintaining the initial mind share as the key builders of the IoT world, the vision, implementation, and ecosystem is centered on OT companies like GE, Siemens, ABB, GM, Bosch, Ford, Volvo, Toyota, Samsung, Honeywell, Hitachi, and others that hold decades of system knowledge and an entrenched position in each of the major industries investing in the next wave of embedded and intelligent systems."
To enable and realize the true value of IoT, edge intelligence, which pushes processing for data intensive and processing applications away from the core to the edge of the network, continues to expand. As processors, microcontrollers, and connectivity are embedded into a plethora of new devices, "edge intelligence" in smart appliances, industrial machines, and automobiles continues to increase. The study identifies the fastest growing segments of the intelligent systems market, including wearables, advanced driver assistance systems (ADAS), automotive entertainment, drones, smart homes, smart buildings, video surveillance, 3D printers, and transportation telematics.
"A radical transformation is underway from the cloud to the edge of every major system. In an effort to address the opportunity, both edge and cloud infrastructure needs to continue to scale and support trillions of sensors and billions of systems," said Les Santiago, research director, Wireless and IoT Semiconductors at IDC. "Increasing intelligence at the edge will be one of the primary drivers of growth of the overall semiconductor market over the next few years against the backdrop of a maturing smartphone and PC market and a difficult pricing environment in the memory markets. As such, vendors would benefit from structuring their product portfolios to take advantage of this trend."
The study centers on the ongoing evolution of major system segments made up of traditional embedded systems that are now undergoing a disruptive migration to intelligent systems and the promise of service models that will emerge with the growth in adoption of these systems and the data generated. The microprocessors, microcontrollers, connectivity and sensor opportunity enabled by both embedded and intelligent systems is quantified and forecasted through 2020.
Some of the tables and figures in the report are listed below – this is not an exhaustive list:
- Top 15 Segments Driving Growth In Intelligent Systems, By 2015–2020 (CAGR) and 2020 Revenues > $1B
- Top 15 Segments Driving Growth In Traditional Embedded Systems, By 2015–2020 (CAGR) and 2020 Revenues > $1B
- Worldwide Microprocessor Core Shipments, Excluding PCs, Mobile Phones, Tablets, eReaders, and Servers, 2015-2020 (Mu)
- Microprocessor Architectures in Embedded and Intelligent Systems by Industry, 2016
- Microprocessor Architecture Revenues by Select Market Segments (Wearables, ADAS, Drones, Video Surveillance, Smart Home, Smart Building and others), 2016
- Microcontroller Architectures in Intelligent and Embedded Systems by Industry, 2016
- Microcontroller Architecture Revenues by Select Market Segments (ADAS, Healthcare, Smart Home, Smart Meters, Smart Building, Smart Cards, Wearables and others), 2016
- Connectivity Share (Bluetooth, WiFi, Cellular, Zigbee, Ethernet, Other Wireless and Wired) By Industry, 2016
- Sensor (Environmental, Image and Optical, Motion Sensors, Microphones, Others) Shipment Share By Industry, 2016
The IDC report, Worldwide Embedded and Intelligent Systems 2015-2020 Market Forecast (Doc #US41274516, forthcoming), sizes and forecasts the traditional embedded systems and intelligent systems and microprocessor markets segmented across a broad set of industries and over 272 system categories. The study also provides the context of Intelligent Systems within the broader vision of the Internet of Things (IoT) by IDC. An illustration of the system segmentation taxonomy and market model is shown below. Please contact your salesperson or the authors of this document for access to this model.
IDC’s Intelligent and Embedded Systems Market Model
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC.
Consumer device semiconductor, Ethernet and USB, Internet of things, Media tablet and eReader semiconductor, Mobile phone chipset and connectivity semiconductor, Networking and connectivity devices, PC semiconductor, Video surveillance, Wearables, WiFi, WAPI, Wireless and wired communications semiconductor
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