Sensors, peripherals to outnumber smartphones, PCs

There will be more sensors and connected peripherals than smartphones and PCs this year for the first time. ABI Research projects accessories and sensor nodes are growing at a CAGR of 24.1 percent. Assuming this pace of growth is sustained, this category could reach 47 billion units by 2021, which ABI reports, is more than double the current number.

Sensors are receiving a big boost today from the Internet of Things. Different devices are getting connected to the internet and many embed a variety of sensors. Products such as Bluetooth beacons and proximity sensors are being put to innovative uses.

Sensors growth could accelerate in the future as wireless standards emerge or come online. Currently, 55 percent of IoT connections are considered part of the digital-first domain, according to ABI. Low-power wide-area and short-range networks, however, are aiding the advance of sensors and peripherals. Given that, 65 percent of connections could be in the physical-first domain within five years.

Telecom providers are currently working on 5G connections, which many expect to have an impact on the IoT market. Additionally, there are a number of low-power connectivity standards that have been designed for IoT. Telecom operators have also been working on LTE-M, which is a low-power LTE connection designed for IoT devices. LoRa, SIGFOX and Thread are new wide area networks designed for connected devices. There are also Zigbee and Z-Wave that are meant for short-range communication.

These trends are driving adoption of connected devices and thus aiding the explosion of sensors. Smartphones and wearables have been the catalysts of sensors growth in recent years, but there will be much more demand in the sensors market. ABI's numbers are only the latest evidence of this development. Industry watchers have been predicting this trend for a while, it simply has not been clear how quickly people are likely to adopt new IoT technology.