Industry Background
The Internet of Things (IoT) is developing at an astonishing pace. According to IoT Analytics, the number of connected IoT devices worldwide has increased from approximately 1.4 billion in 2022 to 1.66 billion by the end of 2023, and is expected to reach 1.88 billion by the end of 2024. Market research institutions forecast that the global IoT market size will grow from $595.7 billion in 2023 to $4.06 trillion by 2032.
IoT technologies have penetrated various aspects of life and production: in smart homes, applications such as connected appliances, security monitoring, and environmental sensing are increasingly widespread; in industrial automation, sensors and control systems form the foundation of Industry 4.0, improving productivity and equipment maintenance capabilities; in healthcare, a growing array of wearable devices and remote monitoring systems enables real-time patient tracking and health management; and in smart city development, IoT powers traffic control, environmental surveillance, and public infrastructure management for intelligent operations.
As industry research suggests, industrial automation and control, home automation, and artificial intelligence are the primary application domains of IoT. Against this backdrop, the rapid increase in the number of connected devices and the diversification of use cases place higher demands on electronic components.
The Critical Role of Electronic Components
IoT devices are typically composed of four core functional modules: sensing, processing, communication, and power management.
● Sensing (Sensors): Sensors detect physical or chemical signals such as temperature, humidity, pressure, position, motion, and gas composition, and convert them into digital data. A typical IoT device integrates multiple sensors—averaging about four sensors per device. Sensors act as the “eyes” and “ears” of IoT, forming the bridge between the physical world and digital systems.
● Processing (MCU/MPU): Microcontrollers (MCUs) or Microprocessors (MPUs) handle data calculation, filtering, and decision-making. Modern IoT MCUs emphasize ultra-low power design to extend battery life. For example, ST’s STM32L4 series adopts an ARM Cortex-M4 core, achieving 100 DMIPS at 80MHz, with dynamic voltage scaling and low-power peripherals. New-generation MCUs also integrate multi-protocol wireless interfaces and hardware security modules to ensure connectivity and data protection.
● Communication (Connectivity): Communication modules enable two-way data transfer between devices and networks. According to IoT Analytics, the top three IoT connectivity technologies are Wi-Fi (31%), Bluetooth (25%), and cellular IoT (21%). Wi-Fi dominates in smart homes, buildings, and medical applications, while Bluetooth Low Energy (BLE) is favored for its low power consumption in wearables and asset tracking. Low Power Wide Area Networks (LPWAN) such as NB-IoT and LoRa are growing rapidly—global LPWAN connections reached nearly 1.3 billion in 2023 and are expected to grow at a 26% CAGR by 2027. Multi-protocol wireless chips that support BLE, ZigBee, Thread, etc., continue to evolve, improving speed and coverage (e.g., 5G RedCap).
● Power Management: Power Management ICs (PMICs) ensure stable power supply and energy efficiency, covering battery charging/discharging, voltage regulation, and power conversion. Many IoT devices operate in remote or mobile settings, making battery life and power optimization critical. High-quality PMICs help monitor energy levels, reduce standby power, and ensure long-term stable operation. Wireless charging and energy harvesting technologies are also emerging to support self-powered systems.
Sensor Classification and Trends
Sensor technologies for IoT are advancing rapidly, driven by robust market demand. According to IoT Analytics, about one-third of sensors shipped in 2022 were for IoT applications, contributing to a $10.9 billion global IoT sensor market, projected to grow at a 16% CAGR over the next five years. MEMS (Micro-Electro-Mechanical Systems) sensors dominate this segment, with Bosch and STMicroelectronics as key players.
● Technological Trends: Sensors are becoming increasingly intelligent, incorporating onboard signal processing and analytics for edge-side responsiveness. Innovations such as soft sensors (algorithm-based inference), sensor fusion (collaborative sensing), and biosensors are emerging. The trend favors ultra-low power, miniaturized packaging, and multi-function integration (e.g., Bosch BME series combining temperature, humidity, pressure, VOC). Development is also underway for high-precision sensors, including optical and ultrasonic types.
● Market Demands and Challenges: With IoT proliferation, sensor volumes are soaring. Applications like home monitoring, environmental sensing, logistics, and medical diagnostics demand sensors with high reliability, linearity, and measurement range. Constraints on power, cost, and size are significant—e.g., battery-powered wireless sensor nodes require ultra-low standby current. Harsh environments further require EMI resistance, temperature/humidity durability, etc. Interoperability and standardization remain industry challenges.
Microcontroller (MCU) Trends
As the “brains” of IoT devices, MCUs must balance performance and power efficiency. Key development trends include:
● Ultra-Low Power Design: MCUs use multi-level sleep modes and voltage scaling to extend battery life. Many support fast wake-up and on-chip power gating for minimal energy during mode transitions.
● Multi-Protocol Integration: With protocols like Matter, Bluetooth 5.x, and Thread rising, multi-protocol MCUs are becoming mainstream. A single chip supporting BLE, ZigBee, Wi-Fi, etc., simplifies hardware design and reduces costs. New MCUs increasingly include machine learning accelerators or DSPs for on-device AI inference, enabling intelligent sensing.
● Security and Programmability: Rising security threats drive MCUs to include hardware encryption engines, trusted execution environments (TEE), and secure storage. Architectures are expanding from ARM to open-source platforms like RISC-V. Key challenges include enhancing performance while maintaining low power, and ensuring firmware updates and vulnerability protection.
The market outlook is strong: the global IoT MCU market is projected to grow from $6 billion in 2024 to approximately $16.3 billion by 2032, with a 13% CAGR. 32-bit MCUs (e.g., ARM Cortex-M series) will continue to dominate due to their processing and integration capabilities.
Wireless Communication Module Evolution
Wireless modules are essential for remote IoT connectivity. Core technologies include Wi-Fi, Bluetooth Low Energy (BLE), and ZigBee for short-range, and NB-IoT, LTE-M, LoRa, Sigfox for long-range (LPWAN) communications.
● Wi-Fi/BLE: Wi-Fi remains the go-to for high-throughput scenarios (e.g., video, gateways). Wi-Fi 6/6E/7 standards are rapidly evolving. BLE is favored for its low power profile, used in wearables, smart homes, and sensor networks. Integrated Wi-Fi + BLE SoCs (e.g., from TI, Infineon/Cypress) are increasingly common, easing development.
● LPWAN: NB-IoT (a 3GPP standard) is ideal for massive low-bandwidth devices, while LoRa (by Semtech) thrives in private networks and smart metering/agriculture. By end of 2023, LPWAN connections reached nearly 1.3 billion, with NB-IoT accounting for 58%. Both licensed (e.g., LTE-M) and unlicensed (e.g., LoRa, Sigfox) spectrums will continue to expand. The 5G era introduces solutions like RedCap (Reduced Capability 5G) for higher bandwidth and lower latency in IoT.
● Multi-Protocol Fusion & Challenges: Multi-protocol chips/modules are becoming standard. Communication reliability in EMI-heavy environments requires careful design around antenna tuning, spectrum management, and network security. Another challenge is managing protocol upgrades on long-life devices and the lack of unified standards like Matter, which is still under development.
Power Management IC (PMIC) Development
Many IoT devices are deployed in hard-to-maintain environments, making efficient power management vital. The global PMIC market reached $38.2 billion in 2023, with a projected 6.8% CAGR through 2030.
● Integration and Efficiency: As devices grow smaller and more complex, PMICs are becoming highly integrated—combining buck/boost converters, wireless charging, and battery monitoring on a single chip. High efficiency (e.g., synchronous rectification) and low quiescent current are essential to minimize standby energy loss.
● Multi-Functionality: Modern PMICs support multiple power rails, along with battery protection, thermal management, and even energy harvesting (e.g., solar). The demand for fast charging and battery safety is driving smart charging chip innovation. Some PMICs integrate charging controllers and gas gauges, ideal for Li-ion-powered sensor nodes.
● Safety and Standards Compliance: PMICs must comply with energy and safety regulations (e.g., Energy Star, IEC 61000). Protection against overcharging, deep discharge, and EMI is critical. For designers, balancing performance, cost, and power consumption—especially in extreme conditions—remains an ongoing challenge.
Recommended Non-Domestic Electronic Components
● Sensors:
○ Bosch BME680: A 4-in-1 sensor for temperature, humidity, pressure, and VOC gas, ultra-low power, ideal for air quality monitoring and wearables.
○ ST LSM6DS3: A low-power 6-axis IMU (3D accelerometer + 3D gyroscope), suitable for motion detection, navigation, and anti-theft.
○ Analog Devices ADXL345: A 13-bit high-resolution 3-axis accelerometer, consuming only 23μA, supports activity/inactivity detection, tap, and free-fall interrupts.
Looking forward, IoT will increasingly integrate with emerging technologies: Edge AI will enable on-device data processing, relieving the cloud; 6G and satellite communication will expand coverage; and concepts like digital twins and blockchain will support smarter industrial and urban operations. Meanwhile, sustainability trends will push for energy-efficient hardware and renewable integration (e.g., energy harvesters). It is clear that electronic components will continue evolving in intelligence, integration, and efficiency, driving IoT toward deeper, smarter development.
