Smart watches and smart light bulbs are bound to get even smarter with this announcement.

ARM is launching its smallest and lowest-power ARMv8-A processor today as it further targets next-generation wearables and Internet of Things applications.

ARM already has an estimated 70 percent market share in embedded, or processors that are used in appliance-like devices such as automobiles. It is positioning itself to expand that share with a focus on the Internet of Things (smart and connected everyday objects), which could be a $1.7 trillion market by 2020, according to market researcher IDC.

The ARM Cortex-A32 is targeted at embedded solutions that need 32-bit processing, said John Ronco, vice president  of product management, in an interview with VentureBeat.

The new chip offers an upgrade path for past customers of ARM’s Cortex-A5 and Cortex-A7 cores. Ronco said the new chip brain is about 25 percent more efficient than the Cortex-A7, meaning it has more performance and uses less power.

The new core is scalable for a wide variety of embedded applications, and it has built-in security as well. It is optimized for low cost and efficiency.