According to a report published by ABI Research the smart home, beacon, wearable, and other nascent IoT applications including energy management and smart cities are to propel the wireless IoT connectivity market forward. This market’s trend toward multi-protocol connectivity IC adoption will ease development time, boost scale, and reduce complexity and cost for manufacturers across these different sectors in the years ahead.
“Devices that incorporate multi-protocol chipsets will be more futureproof. While a product might utilize Bluetooth in the short term, a device manufacturer may want to switch to Thread in the future or have the ability to talk to multiple connectivity protocols once deployed", says Andrew Zignani, Industry Analyst at ABI Research.
In future, it might not be a case of either Bluetooth or ZigBee or Thread, but rather utilizing a combination of these technologies in a single device. The recently announced acquisition of GreenPeak by Qorvo and the resulting expansion in their RF portfolio with low-power SoCs, 802.15.4, and Bluetooth solutions, illustrates the growing importance of both of these technologies for the IoT.
ABI Research also expects to see a growing presence of smart home hubs that incorporate multiple connectivity solutions such as Wi-Fi, Bluetooth Smart, Z-Wave and 802.15.4 (ZigBee/Thread). These solutions will have a significant role to play in the development and consolidation of wireless connectivity solutions for the smart home. These hubs are already being already offered by the likes of Google, Samsung, and Huawei.
They forecasted that Bluetooth smart home devices will show a 75% growth rate between 2016 and 2021, though 802.15.4-based ZigBee and Thread will lead with 34% volume share of the home automation and 29% of the smart lighting markets by this time. 802.15.4 will also see growth in smart metering, building automation, industrial, and street lighting market, accounting for almost one third of 802.15.4 shipments by 2021.
A majority of fitness and activity trackers are utilizing Bluetooth Smart, with the solution extending to medical applications moving forward. It also promises significant opportunity for beacons across numerous verticals, such as retail and advertising, with a 129% growth rate between 2016 and 2021. However, looking ahead there will be increasing competition in the connectivity sphere across numerous IoT verticals.
These findings are part of ABI Research’s IoE Semiconductors Service and Wireless Connectivity Service, which includes research reports, market data, insights, and competitive assessments.
