Market Overview

Analysts Confirm Half a Billion Zigbee Chipsets Sold, Igniting IoT Innovation; Figures to Reach 3.8 Billion by 2023


802.15.4 Mesh Networks Dominate Connectivity in the IoT with Zigbee
Alliance Standards Forecasted to be in 85% of Units Shipped Over the
Next Five Years

The Zigbee Alliance, an organization of hundreds of companies creating,
maintaining, and delivering open, global standards for the Internet of
Things (IoT), today announced that findings from leading market research
firm ON
project an extremely favorable market for connected devices
leveraging Zigbee Alliance technologies over the next five years. ON
World – whose experts provide global business intelligence on the IoT –
confirmed that half a billion Zigbee chipsets have been sold to date.
Their analysts predict that 802.15.4 mesh chipset sales will skyrocket
to 4.5 billion by 2023 with the majority of those being based on Zigbee
Alliance technology standards.

The firm's most recent research findings, available here,
note Zigbee as the leading IoT connectivity technology for the smart
home. Estimates state Zigbee Alliance technologies will account for
3.8 billion (85%) of the 4.5 billion IEEE 802.15.4 units projected to
ship by 2023.

"ON World has closely followed the IEEE 802.15.4 category for the past
15 years and has tracked Zigbee technology since before its flagship
specification was ratified in December 2004," said Mareca Hatler,
Principal Analyst at ON World. "Since then, our team has conducted
extensive, year-round primary research on wireless sensing, tracking and
control in dozens of ecosystems – interviewing and surveying thousands
of companies of all sizes across the entire value chain. Our findings
indicate Zigbee leads the wireless mesh sensor network market and will
continue to do so."

Key points and projections from the report include:

  • Half a billion Zigbee chips have been sold to date.
  • By 2023, 1 billion Zigbee chips will ship annually
  • By 2023, 4.5 billion cumulative IEEE 802.15.4 mesh devices will be
    sold worldwide – and 85% of those will use Zigbee Alliance standards.
  • Today, Zigbee makes up more than one-third of the smart home Wireless
    Sensor Network (WSN) chipset market.
  • Zigbee is the leading IoT connectivity technology for the smart home.

"ON World's projections validate the success we've been experiencing
behind the scenes as we work with hundreds of innovative companies and
developers to design and market Zigbee-based mesh products," said Katie
Gengler, Head of Marketing for the Zigbee Alliance. "2018 is already on
track for a record year for Zigbee certifications, and to date the
Alliance has qualified thousands of different smart product types that
are part of today's most popular and thriving IoT ecosystems, including
those from Amazon,
, Signify
(formerly Philips Lighting), Somfy,
and Samsung

Several segments in the IoT market are experiencing tremendous growth,
including connected lighting, smart meters, and climate control and
comfort automation. Zigbee Alliance members are fueling this surge by
providing open, standards-based devices that transform the way we live,
work and play. Flagship Zigbee Alliance technologies shaping the future
of the IoT market include:

: Zigbee is the only complete, open IoT solution, from
mesh network to the universal language that allows smart objects to work
together. It's built on the Zigbee
networking stack and adds security layers so manufacturers can
build full-stack, low-power, interoperable IoT devices, certified by the
Zigbee Alliance, and backed by a global ecosystem of platforms, products
and support.

Already at the heart of Zigbee devices, Dotdot is the critical component
in the wireless networking stack responsible for providing a universal
application layer that makes it possible for different IoT devices to
speak the same ‘language' whether running over Zigbee, Thread, IP, or
other networks. Dotdot enables smart objects to seamlessly and securely
connect to each other across a wireless network, and expands
possibilities for both developers and users as they look to build out
ecosystems and explore the Internet of Things.

Energy by the Zigbee Alliance
: Smart Energy is the
world's leading standard for interoperable products that monitor,
control, inform, and automate the delivery and use of electricity, gas
and water. Developed with the expertise of hundreds of industry
technical and business leaders, the Smart Energy standard and
Certification program ensures Smart Energy products will deliver robust
wireless networking performance and interoperability. There are more
than 700 existing Smart Energy Certified products, along with a large
network of suppliers to support a healthy market of products to choose

For additional information about 802.15.4 market projections, please
read the ON World report synopsis here.
To learn more about how to join the Zigbee Alliance and be part of its
charge in the IoT, click here.

About the Zigbee Alliance

The Zigbee Alliance is the foundation and future of the Internet of
Things. Established in 2002, our wide-ranging global membership
collaborates to create and evolve universal open standards for the
products transforming the way we live, work, and play. With our members'
deep and diverse expertise, robust certification programs, and a full
suite of open IoT solutions, we are leading the movement toward a more
intuitive, imaginative, and useful world. The Zigbee Alliance board of
directors is comprised of executives from Comcast,
Kroger Co.
, Landis+Gyr,
, Schneider
, Signify
(formerly Philips Lighting), Silicon
, SmartThings,
and Wulian.

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