IoT : Internet of Things and Market Segmentation

As a television ad once promoted, we live in a modern day society where we want to :

Share this. Share that.

How can we do that?

The current set of millions of smartphones (iPhones) can easily share voice and text conversations and photos.

But what’s next to do.

We build some intelligence into devices to allow remote monitoring and other sensing applications so that we can share even more information related to devices like washing machines, refrigerators, lights, sprinklers, home security, and even smart watches to monitor health conditions in real-time.

This growing network of interconnected devices will expand the internet bandwidth requirements.

This new market for intelligent internet of things (IoT) is generally segmented into these categories with the top two already existing and the remainder needing to be built or already in design and production.  These are ordered in somewhat reducing complexity:

  • Servers / Routers
  • Smartphones / Tablets / Home PCs / Laptops
  • Wearable infotainment
  • Wearable Fitness and Health
  • Smart Home
  • Smart Appliance
  • Safety and Security
  • Smart City / Metering
  • Commerce

Reference Synopsys analysis of IP components needed to build these IoT devices


The high-end Internet of Things are occupied by the Smartphones/Tablets/Home PCs/Laptop and an example SOC diagram would like below with CPU, display, LDDR and sensors.  These usually use the latest technology process nodes like 10nm FinFET to make the billion transistor devices economical and probably cost between $20 to $100 per device.



The low-end SOC for IoT has significantly reduced IP but maintains bare functional and communication capabilities such as as a CPU, bluetooth and sensor.  These would probably go into smart metering devices and use 28nm process node technology and cost around $5 to $20.



The bottom SOC for IoT can be a bare minimum of CPU, some local storage RAM and sensor.  Cost should be within a $1 or less to be economically feasible and produced in the billions.  It can probably use older process nodes like 90nm and cost less than $1 to manufacture. These could be added as tracking devices for very expensive items shipped across international borders.



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