this company is in a number of spaces, my question is this: the IOT space is obviously very hot and will continue to grow...can anyone speak to how much of their business is currently derived from this space, and what does their presence in the market look to be moving forward? thanks for any replies.
It is a bit difficult to respond to your question as the domain IoT is not that clearly defined in terms of specifications. It is more like an umbrella for a stereotype of applications. And this application pattern is this:
- ultra low power agent: sensors, MCU processing data, persistent memory, wireless for small range comm
- hub: wireless for small range comm with the agents, full range CPU with connectivity to Internet (either wired, thus powered by PoE, or wireless like WiFi or 3G/4G user terminal stack)
- transport to the cloud: the more hubs are connected to the Internet, the bigger the need for wireless of wired connections to the cloud: thus you need small cell basestations or WiFi hotspots or plain Internet wired routers
- cloud: the service providers what to set a secured Internet space for your IoT application (being the cloud space of a hospital that remotely monitors your health, or your garden watering system, or your home appliances, etc); this requires server virtualization, IP encryption of the traffic, you know, the datacenter type of applications.
It's complicated to breakdown the FSL revenues specifically for the IoT considering that some parts could be reused in different applications.
1) The Auto MCU, 1063 mil in 2013, some of these parts are for the engine control, airbags, etc. But there is also the infotainment part that could meet the IoT. My guess is that only 10-15% of revenues come from the infotainment in this business. The point is that with IoT in every home, every driver will want to update the infotainment module in the car with one that is IoT enabled.
2) Microcontroller MCU, 826 mil in 2013, most of the revenues come from appliances compatible with IoT: tablets, wireless small range comm, etc. I mean the MCU that goes into the hub, running Linux.
3) Digital networking, 915 mil in 2013, 80% of revenues come from Internet routers (wired) for traffic processing and encryption, the rest is from basestations. If the IoT will demand more Internet access, than these numbers will increase. But perhaps not in the first phase of IoT ramp-up.
4) Analog and sensors, 736 mil in 2013, it is difficult to tell the product mix. You could assume 50-60% of the revenues from IoT. But keep in mind that most appliances today have sensors, they don't have IoT. Newer appliances will not add sensors, but rather MCUs and connectivity. I would not assume this business to grow much more. For instance, you do have sensors in the refrigerator, but this cannot talk to your cell over the net. New generations will add this communication (over the cloud and for the short range inside the house), not newer sensors.
5) RF, 352 mil in 2013, this is mostly related to macro basestations power amplifiers. I would not see this being influenced to much by the IoT.
To sum things: 15% of 1063 + 826 + 60% of 736, excluding the cloud effect that increases the demand for the network access. My guess is that only the first two terms of the sum will increase with the IoT growth.