Complex chip designs and increased use of multi-core technologies will drive the global semiconductor Internet Protocol (IP) market between 2018 and 2022.
The research firm predicts the market to increase by 10% over the next five years.
Competition amongst semiconductor manufacturers to deliver new offerings is growing the market.
According to Technavio, electronic device manufacturers are developing products with better functionalities compared to previous offerings. This is driving semiconductor chip manufacturers to improve their product development process and the performance of their technology, to meet operational standards adopted by electronic device manufacturers.
Semiconductor and communications tech markets
Technavio has identified the proliferation of wireless technologies as an emerging trend in the semiconductor IP market. The IoT market has significantly expanded over the past 25 years with the introduction of new devices, communication protocols and technologies.
For instance, the IPv6 communication protocol, in development phase since 1990, has replaced IPv4. This has allowed many hosts to connect to the Internet and increases the data traffic that can be transmitted.
The use of mobile devices has helped the network traffic to grow resulting in the continued development and deployment of next generation wireless communication standards, such as 4G and 5G and technologies including Bluetooth low energy, Wi-Fi, ZigBee, and Z-Wave.
“At present, ZigBee is one of the three leading wireless technologies used for connected devices such as connected bulbs, remote controls, smart meters, smart thermostats, and set-top boxes. High-bandwidth and content-rich applications such as audio, video, gaming, and Internet use the Wi-Fi technology.
“BLE is used for low power applications and is primarily used to connect wearables to smartphones. ZigBee is a low power version of Wi-Fi which is appropriate for smart home applications such as lighting, remote controls, security, and thermostats,” according to a senior analyst at Technavio for research on semiconductor equipment.
North America dominated the global semiconductor IP market with 47% share in 2016 and continued the domination in 2017 followed by Europe.
However, the market share of North America will decrease due to governments such as South Korea, Japan, China and India adopting policies against the importation of semiconductors under efforts to grow their local markets.
The APAC region is expected to grow at a faster rate due to increased prevalence of orthopedic surgical procedures. The emerging economies like China and Taiwan are contributing to the growth of this market in APAC.
Image credit: Stock