Tailored for RF applications that require low data rate, long battery life and secure networking, ZigBee has come a long way since it was defined as an open IEEE (News - Alert) standard 802.15.4 (2003). Built on the physical layer (PHY) and medium access control (MAC) in 802.15.4, ZigBee is gaining momentum in applications such as home automation, smart energy, building automation, healthcare, retail, and telecom. In addition, market research firm NPD In-Stat (News - Alert) sees future growth coming from smart-grid applications.

As a result, semiconductor revenues for ZiGBee technology are expected to surge in next few years. Market research firm NPD In-Stat forecasts that semiconductor revenues for 802.15.4 will likely surpass $1 billion in 2015, with over 71 percent coming from the smart grid/automated meter reading market.

In a statement, Norm Bogen, vice president, Digital Entertainment, NPD In-Stat, said, “ZigBee seems like a natural technology to funnel smart meter data back to the utility.” He added, “After all, ZigBee is already in the vast majority of smart meters that communicate with devices inside the home. The technology seems destined to mesh with other smart meters to carry the data back to the utility.”

According to Bogen, home automation and consumer lighting are next big drivers for ZigBee.  Energy savings is the key factor that will drive ZigBee technology in to these markets, stated Bogen.

NPD In-Stat’s latest report on 802.15.4 and ZigBee indicates that smart energy is the largest volume growth opportunity at this time for ZigBee products and that US is the leader when it comes to market deployment of smart meters. Other attractive applications identified by this report include asset tracking and patient tracking in hospitals and security systems.

Some key suppliers in this market include Ember, Freescale, Microchip, Google, NXP, Philips (News - Alert), and Texas Instruments.

Combined 802.15.4 chip and module shipments are forecast to reach 850 million units in 2014, according to NPD In-Stat.

The IEEE 802.15.4-2003 standard has been superseded by the publication of IEEE 802.15.4-2006.