In previous blogs we have discussed IoT’s broad impact on human life, the supply chain and on the environment. Today, let’s take a look at the building blocks of IoT—electronic components.
For any business involved in the electronics industry the value of the IoT devices and service market is expected to reach $7 trillion by 2020. What kind of electronic components are needed in IoT? What are the functions of those electronic components? What are the opportunities for electronic component distributors in the trend of shifting to IoT?
The core technology in IoT could break down to 3 different areas: connectivity, control and sensor.
Connectivity: It is estimated that by 2022, a family of four will have an average of 50 devicesconnected to the Internet . To keep these devices connected they will require radio chips. The radios could be Wi-Fi, Bluetooth, or even 3G or 4G cellular standard. The University of California, Berkeley and Stanford University developed a radio-on-chip prototype component that is a completely self-contained device and is very inexpensive to make. Experts believe that such chip could accelerate the development of IoT .
Controls: As the brains for the operation of IoT, microcontrollers (MCU) and embedded processors are probably the most important component for IoT devices. Big names like Freescale, Texas Instruments, Atmel, Intel and STMicroelectronics are all rushing to put their MCUs in the market for IoT devices . With various sizes and models to choose from, the segment market of MCU will get more interesting as the development of IoT advances.
Sensors: This huge market segment has already attracted a lot of attention. IoT networks in smart homes, smart agriculture and smart cities are all in demand for sensors to detect humidity, force, airflow, pressure, speed, temperature, etc. Big companies like STMicroelectronics, LG, Samsung and Sony are all hoping to occupy a place in the market.
The big demand for chips brought by IoT will bring opportunities for component distributors. First of all, IoT is component-intensive; all of the core components are already in the market with low price range. Experienced distributors, such as Advanced MP Technology, have already been dealing with those chips for years. The deep market knowledge they have about the components are going to ensure they provide the best service for customers.
Secondly, the board range of supplier base and flexibility of distributors will help different types of customers to reach their manufacturing goals, whether it’s a multi-million dollar production line or a small factory down the street. Experienced distributors can ensure every type of customers gets the service that fit their needs.
Lastly, customers are not only looking to buy components but are also looking for a wide range of services. A full service distributor can provide customers with the support they need in a fast changing supply chain. Such as:
Excess inventory management: With quickly updated IoT technology, this problem is likely to hit many manufactures.
Obsolete parts sourcing: For those manufactures that specialize in military and medical, obsolete parts are hard to find already. With the impact of IoT there are likely to be more obsolete parts challenges in the market. When it happen, distributors’ wide sourcing connection in the industry is going to help find the components needed.
Advanced MP’s 37 years experience, global network and full service programs are ready for the age of IoT to support our customer with the best service to fit their special needs in procurement, inventory management and logistics services.