The Global semiconductor market

Total sales of US$336 billion in 2014 saw the global semiconductor industry once again achieve record sales, growing 9.9% over 2013’s record US$306 billion. Several semiconductor application markets stood out in 2014. Data processing was the largest market by sales, reaching US$134 billion in 2014, a 12.8% increase from 2013. The communications and automotive markets have shown particular strengths, driving growth in 2014 which is expected to continue in coming years. Annual sales in almost all regions have shown sustained growth, with Asia-Pacific continuing to grow in importance. In terms of installed semiconductor components, logic integrated circuits (ICs) was the largest category, with sales reaching US$90 billion in 2014, a 6% year-on-year increase. Memory was the fastest growing category, seeing an 18.2% annual increase. Another remarkably fast-growing category was sensors, achieving sales of US$9 billion in 2014, an 8.2% annual increase. We expect sensors to see the highest growth rate, with a CAGR of 10.4% from 2014 to 2019

The Internet of Things or IoT is regarded as a disruptive technology and a game changer. The IoT (Internet of Things) will be defined by the exponential growth of web-enabled “things” that measure, monitor and control the physical world, interacting with each other. 

According to Gartner, IoT is defined as a network of physical objects that contain embedded technology to communicate, sense, or interact with internal or external environments. The analyst firm predicts that IoT growth in 2014 will far exceed that of other connected devices. Shipments are expected to reach an estimated 26 billion units, an almost 30-fold increase from 0.9 billion in 2009. 

Predictions are that there will be 50 billion connected devices by 2020 and in our lifetime we will experience life with a trillion-node network. The IoT is ushering in the next Industrial Revolution and will enable new form of analytics to analyse a massive cloud of dynamic, ever changing information and offer information that can be used for operative and analytical purposes. 

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