Between 2015 and 2020, IoT integrated circuit sales are projected to rise by a compound annual growth rate (CAGR) of 13.3% compared to 4.3% for the entire IC market, which is projected to reach $354.7 billion in four years versus $287.1 billion last year, based on the forecast in the 492-page report. As shown in Figure 1, strong five-year IC sales growth rates are also expected in automotive (a CAGR of 10.3%), medical electronics (a CAGR of 7.3%), digital TVs (a CAGR of 5.9%), and server computers (a CAGR of 5.4%).

Cellphone IC sales—the biggest end-use market application for integrated circuits—are expected to grow by a CAGR of 4.8% in the 2015-2020 period. Saturation in smartphone markets and economic weakness in some developing regions are expected to curb cellphone IC market growth in the next four years after sales increased by a CAGR of 10.8% between 2010 and 2015. Meanwhile, weak and negative IC sales growth rates are expected to continue in standard personal computers, set-top boxes, touchscreen tablets, and video game consoles.

The new 2017 IC Market Drivers report shows 2016 integrated circuit sales for IoT applications climbing nearly 19% compared to 2015 to an estimated $12.8 billion, followed by the automotive segment increasing about 12% to $22.9 billion, medical electronics rising 9% to $4.9 billion, and digital TV systems growing 4% to $12.9 billion this year.

The report estimates IC sales growth in server computers being about 3% in 2016 to $15.1 billion, cellphones being 2% to $74.2 billion, and set-top boxes being 2% to $5.7 billion. Meanwhile, standard PC integrated circuit sales are estimated to be down 5% in 2016 to $54.6 billion while video game console IC revenues are expected to finish this year with a 4% drop to $8.9 billion and tablet IC sales are on track to decline 10% to $12.1 billion in 2016, according to IC Insights’ new report.