Research company IC Insights lowered its forecast for the semiconductor market for equipment related to the Internet of Things (IoT).

As explained by experts, a reduction of $ 920 million is mainly due to a decrease in estimates for revenue in the sphere of solutions for "smart" cities. IC Insights noted that governments around the world are trying to reduce infrastructure costs, and the growth in the distribution of smart electricity meters is slowing due to the fact that many countries have completed the first wave of installation of such equipment.

Nevertheless, the adjusted forecast still provides for market growth: in 2017, sales of IoT-chips will increase by about 16.2%, to $ 21.3 billion.

For comparison, in 2016, IC Insights estimated global revenue in this direction at 18.3 billion US dollars.

However, the growth rates will not be as fast as previously thought: during the period from 2015 to 2020, the sales of IoT chips will increase by an average of 14.9%, while the previous estimate made in December 2016 included a CAGR of 15 , 6%.

It is also expected that in 2020 the revenue from the sale of semiconductors for IoT-systems will reach $ 31.1 billion, and not $ 32 billion, as IC Insights initially.