The market for intelligent systems is set to grow from 3.5 billion units and $1.7 trillion in revenue this year to more than 5 billion units and nearly $2.4 trillion in revenue by 2017, according to new research from IDC.
The analyst company reckons intelligent systems – featuring high-performance microprocessors, IP connectivity and high-level operating systems – will capture the real value in the M2M market over the next five years.
“Among the systems in the Internet of Everything [IoE] and between the systems communicating in M2M communications, intelligent systems are the main drivers of value across the Internet and the dominant electronic systems on the IoE roadmap and in M2M interactions,” said Shane Rau, IDC’s research vice president. “They drive a richer user experience and provide the user with relevant data to optimize the value of a transaction or workload.”
IDC predicts that intelligent systems will account for 39% of the 9.1 billion units sold in the intelligent and embedded systems market this year, but for nearly 73% of the $2.3 trillion in revenue.
It says the proportions will grow to 46% of the 11 billion units and more than 87% of the $2.7 trillion in revenue in 2017.
“Our findings clearly show that intelligent systems bring back more ROI for OEMs and supply chain vendors who invest in them,” said Mario Morales, the vice president of IDC’s semiconductors and enabling technologies research group.
“The evolution of intelligent systems embodies a vision of computing that surrounds us and is adaptable and autonomous. Vendors in the intelligent ecosystem see that an inflection point is coming for this market,” he said.