IoT Chips Market Size, Share, Competitive Landscape and Trend Analysis Report, by Hardware, by Industry Vertical : Global Opportunity Analysis and Industry Forecast, 2023-2032

IoT Chips Market Research, 2032

The global IOT Chips Market was valued at $432 billion in 2022, and is projected to reach $1.7 trillion by 2032, growing at a CAGR of 14.3% from 2023 to 2032.

The increased deployment of 5G networks is a driving force for the IoT chip market. With 5G's enhanced speed, reduced latency, and increased capacity, there is a growing need for IoT chips and 5G IOT chipset to support the proliferation of interconnected devices.

IoT chip is a specialized integrated circuit embedded in machines, objects, and things. With the help of embedded technologies, such as processors, sensors, connectivity ICs, memory devices, and logic devices, IoT chips are used in IoT sensors, smart gateways to provide connectivity, data processing, and communication. IOT chips are crucial in collecting, transmitting, and processing data within IoT systems.

Key Takeaways of Internet of things Chips Market Report

• On the basis of hardware, the processor segment dominated the IOT chip market size in terms of revenue in 2022. However, the sensor segment is anticipated to grow at the fastest CAGR during the forecast period.
• On the basis of industry vertical, the industrial segment dominated the IOT chip market size in terms of revenue in 2022. However, the consumer electronics segment is anticipated to grow at the fastest CAGR during the forecast period.
• Region wise, North America generated the largest revenue in 2022. However, Asia-Pacific is anticipated to grow at the highest CAGR during the forecast period.

Segment Overview

The IOT chips market is segmented into hardware and industry verticals, and region.

On the basis of hardware, the market is divided into processor, sensor, connectivity IC, memory device, logic device, and others. In 2022, the processor segment dominated the IoT chipset industry in terms of revenue. Moreover, the sensor segment is projected to have the highest CAGR during the forecast period.

On the basis of industry vertical, the market is classified into healthcare, consumer electronics, industrial, automotive, banking financial services & insurance, retail, and others. In 2022, the industry segment dominated the IoT Chipset Industry in terms of revenue. However, the consumer electronics segment is expected to manifest the highest CAGR during the forecast period.

On the basis of region, it is analyzed across North America (the U.S., Canada, and Mexico), Europe (the UK, Germany, France, Italy, Spain, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and rest of Asia-Pacific), Latin America (Brazil, Argentina, and rest of Latin America), and Middle East and Africa (UAE, Saudi Arabia, Qatar, and rest of Middle East and Africa). Asia-Pacific, specifically China, remains a significant participant in the IoT Chipset Industry with a CAGR of 15.77% due to high investments in the consumer electronics sector, which is driving the growth of the IOT chip industry in Asia-Pacific region.

Competitive Analysis

IoT chips makers profiles includes, Qualcomm Technologies Inc., STMicroelectronics NV, Samsung Electronics Co. Ltd, Analog Devices Inc., Intel Corporation, Texas Instruments Incorporated, NXP Semiconductors NV, Infineon Technologies AG, MediaTek Inc., and Microchip Technology Inc. are provided in this report. Product launch and acquisition business strategies were adopted by the major IoT chip manufacturers in 2022. For instance, In June 2021, Qualcomm launched seven of its new IoT chipsets that were targeted at devices meant for logistics, warehousing, smart cameras, video collaboration, and retail. The company stated that these new IoT solutions offer significant capabilities for a wide range of connected solutions and smart devices with extended life hardware and software options to achieve long-term support for a minimum of eight years.

Market Dynamics

Rise in demand for connected devices

The rise in demand for connected devices serves as a significant driving factor for the IoT chips market growth. With the proliferation of IoT applications across various industries, such as healthcare, automotive, agriculture, and smart homes, there is a growing need for devices that can communicate, collect, and process data seamlessly. Connected devices, ranging from smartphones and wearables to sensors and actuators, enable individuals and businesses to access real-time information, automate processes, and enhance productivity. This surge in demand for connected devices is fueled by the increasing adoption of IoT solutions aimed at improving operational efficiency, optimizing resource utilization, and enhancing user experiences. For instance, International Data Corporation (IDC) indicated that worldwide smartphone shipments reached a total of 1.24 billion units in 2022.

High cost of deployment and maintenance

The high cost associated with the deployment and maintenance of IoT chips poses a significant restraint for the IoT chip market. Implementing IoT solutions involves the initial cost of acquiring and integrating IoT devices and ongoing expenses for maintenance, upgrades, and connectivity services. In addition, the complexity of IoT deployments, including factors such as interoperability issues, security concerns, and regulatory compliance, further contributes to the overall cost burden. For businesses, especially small and medium-sized enterprises (SMEs), the upfront investment required for deploying IoT infrastructure can be prohibitive, limiting adoption and hindering market growth. Moreover, the lack of standardized pricing models and uncertainty surrounding the long-term costs of managing IoT ecosystems add to the challenges faced by organizations considering IoT implementations.

Rapid expansion of Industry 4.0

The implementation of Industry 4.0 initiatives and digital transformation strategies presents a significant opportunity for the IoT Chips Growth Projections. Industry 4.0, characterized by the integration of digital technologies into manufacturing and industrial processes, relies heavily on IoT solutions to enable automation, data exchange, and smart decision-making. IoT chips play a significant role in connecting machinery, sensors, and devices on the factory floor, facilitating real-time monitoring, predictive maintenance, and optimization of production processes. As businesses across sectors embrace digital transformation to enhance operational efficiency, reduce costs, and gain competitive advantages, there is a growing demand for IoT chips capable of supporting the connectivity, data processing, and control requirements of Industry 4.0 applications. This presents a lucrative opportunity for IoT chip manufacturers to innovate and develop specialized solutions tailored to the evolving needs of modern industrial environments, driving growth and market expansion in the IoT chip sector. For instance, in July 2022, according to Economic Times's survey, cellular IoT module chipset shipments grew in India, and Qualcomm led the market with a 42% share. The company has been broadening its 5G IoT chipset portfolio, targeting premium 4G and 5G solutions for verticals such as retail, industrial, and smart cities.

Recent Developments in IOT chip Industry

• In May 2022, Cyient partnered with IIT Hyderabad, India (IITH) and WiSig Networks, a start-up company founded in IITH, to launch India's first designed and engineered chip, Koala NB-IoT SoC (Narrowband IoT SoC). The Memorandum of Understanding (MOU) signed between the two aligns with the goals of MEITY (Ministry of Electronics and Information Technology, India) to build a vibrant semiconductor design and innovation ecosystem to serve the Indian world and further promote its development into a global electronics manufacturing and design hub.
• June 2021 - Impinj Inc., which is a RAIN RFID provider and Internet of Things provider, announced the introduction of three new RAIN RFID reader chips that enable IoT device manufacturers to meet the increasing demand for item connectivity in applications such as retail, supply chain and logistics, and consumer electronics, among other markets.
• June 2021 - Qualcomm launched seven of its new IoT chipsets that were targeted at devices meant for logistics, warehousing, smart cameras, video collaboration, and retail, among other applications. The company also stated that these new IoT solutions offer significant capabilities for a wide range of connected solutions and smart devices with extended life hardware and software options to achieve long-term support for a minimum of eight years.

  Key Benefits For Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the IOT chips market analysis from 2022 to 2032 to identify the prevailing IOT chips market opportunity.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the IoT chips market segmentation assists to determine the prevailing market opportunities.
  • Major IoT chips market size by country in each region are mapped according to their revenue contribution to the global IoT chips market overview
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global IOT chips market trends, key players of IoT AI chips, IoT AI chips market segments, application areas, and market growth strategies.

 

  IoT Chips Market Report Highlights