Global IoT Chip Market Insights Forecasts to 2033

• The Global IoT Chip Market Size was Valued at USD 0.50 Trillion in 2023
• The Market Size is Growing at a CAGR of 14.58% from 2023 to 2033
• The Worldwide IoT Chip Market Size is Expected to Reach USD 1.95 Trillion by 2033
• North America is Expected to Grow the fastest during the forecast period.

The Global IoT Chip Market Size is Anticipated to Exceed USD 1.95 Trillion by 2033, Growing at a CAGR of 14.58% from 2023 to 2033.

Market Overview

An IoT chip is a small integrated circuit that can specifically sense, manipulate, and communicate with Internet of Things (IoT) devices. These chips are the key components that allow IoT devices to connect to the Internet, exchange data with other devices, and perform specified functions automatically or remotely controlled They are usually made up of CPU, memory, wireless communication modules (Wi-Fi, Bluetooth, or cellular communication), and sensors in one device.

IoT chips are essential in many applications, including smart houses, healthcare devices, industrial automation, and wearable technologies. For instance, in a smart thermostat, an IoT chip may additionally interpret temperature data, change settings based totally on individual preferences, and interact with a mobile app or different smart devices. IoT device performance is essentially dependent on the efficiency, power intake, and computing energy of IoT chips, which also affects the device responsiveness, battery lifestyles, and capacity to do complex duties. Improvements in IoT chip technology are essential for allowing superior, powerful, and secure devices as the IoT expands.

Report Coverage

this research report categorizes the market for the global IoT chip market based on various segments and regions forecasts revenue growth and analyzes trends in each submarket. the report analyses the key growth drivers, opportunities, and challenges influencing the global IoT chip market. recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. the report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segment of the global IoT chip market.

Driving Factors

A key advantage of IoT chips is the ability to integrate multiple tasks, such as computing, networking, and sensing into a smaller device. This integration reduces the size and power consumption of IoT devices, making them efficient, with wearable technology and industrial automation. IoT chips support real-time data processing and transmission enabling devices to operate independently or easily with other interconnected systems. In addition, the developments in IoT chip technology have led to better security features, which are critical for data protection and privacy management in interconnected environments

Restraining Factors

One critical situation is the likelihood of safety flaws because these chips are frequently connected to networks and they might be the subjects of cyberattacks, resulting in information leaks or illegal access. Another issue is power consumption, specifically in battery-powered devices, where the chip's energy requirements would possibly limit the device's lifetime. IoT chips also can be high-priced to create and incorporate, mainly in low-cost, high-volume applications where affordability is important.

Market Segmentation

The global IoT chip market share is classified into power type, shape, and application.

• The system-on-chip segment is expected to hold the largest share of the global IoT chip market during the forecast period.   

Based on the type, the global IoT chip market is divided into microcontroller units, application-specific integrated circuits, system-on-chip, and field-programmable gate arrays. Among these, the system-on-chip segment is expected to hold the largest share of the global IoT chip market during the forecast period. SoCs integrate numerous components, which include the CPU, memory, and networking, into a single chip, which will increase their efficiency for the Internet of Things devices, specifically for those with low power consumption and small designs. This expansion is being driven using the development of powerful, power-efficient, and cost-effective solutions in consumer electronics, automotive, and business IoT.

• The connectivity IC segment is expected to grow at the fastest CAGR in the global IoT chip market during the forecast period.   

Based on the product, the global IoT chip market is divided into logic devices, connectivity IC, sensors, processors, and memory devices. Among these, the connectivity IC segment is expected to grow at the fastest CAGR in the global IoT chip market during the forecast period. This section contains semiconductors that allow communication among IoT gadgets and networks, such as Wi-Fi, Bluetooth, Zigbee, and mobile modules. The fast proliferation of linked gadgets in different industries includes smart houses, commercial automation, healthcare, and automotive which is increasing the demand for reliable and effective connection solutions. Strong and adaptable connection integrated circuits (ICs) are increasingly becoming more essential as IoT usage rises which makes this segment category a major growth factor.

• The industrial segment is expected to grow at the fastest CAGR in the global IoT chip market during the forecast period.   

Based on the end-user, the global IoT chip market is divided into consumer electronics, industrial, and healthcare. Among these, the industrial segment is expected to grow at the fastest CAGR in the global IoT chip market during the forecast period. The growing use of IoT in industrial automation, smart production, and Industry 4.0 efforts is riding up demand for IoT chips in the market. These chips offer real-time tracking, predictive maintenance, and progressive operational performance, which is important in contemporary commercial packages. As companies continue to engage in IoT generation to enhance production processes and cost-saving, the segment is expected to increase appreciably in the coming years.

Regional Segment Analysis of the Global IoT Chip Market

• North America (U.S., Canada, Mexico) 
• Europe (Germany, France, U.K., Italy, Spain, Rest of Europe)
• Asia-Pacific (China, Japan, India, Rest of APAC)
• South America (Brazil and the Rest of South America) 
• The Middle East and Africa (UAE, South Africa, Rest of MEA)

Asia Pacific is anticipated to hold the largest share of the global IoT chip market over the predicted timeframe.

Asia Pacific is anticipated to hold the largest share of the global IoT chip market over the predicted timeframe. Rapid technological development, widespread adoption of smart devices, widespread adoption of electronic devices, and strong government support for IoT activities in these countries are driving the rise. Furthermore, the region's large population and growing investments in smart cities and industrial infrastructure contribute to its dominance in the IoT internal chip category.

North America is expected to grow at the fastest pace in the global IoT chip market during the forecast period. The United States is mainly driving this expansion due to its excellent technology infrastructure, widespread adoption of IoT in sectors such as healthcare, automotive, and consumer electronics, and capital investment in innovation, and R&D. Additionally, emerging smart cities, increased use of connected devices and rapid adoption of 5G technology are all driving the IoT chip market in this region.

Competitive Analysis:

The report offers the appropriate analysis of the key organizations/companies involved within the global IoT Chip market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

List of Key Companies

• MediaTek Inc.
• ARM Holdings
• Texas Instruments Incorporated
• Analog Devices, Inc.
• Renesas Electronics Corporation
• Qualcomm Technologies, Inc.
• Infineon Technologies AG
• Cypress Semiconductor Corporation
• STMicroelectronics
• Microchip Technology Inc.
• Intel Corporation
• Nordic Semiconductor
• Broadcom Inc.
• Samsung Electronics Co. Ltd.
• NXP Semiconductors
• Others

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting And Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Recent Developments

• In May 2024, Mindgrove Technologies a semiconductor startup, announced the launch of ndia’s first commercial high-performance SoC (system on chip) for the Internet of Things (IoT) devices.

• In April 2024, Qualcomm announced a breakthrough in wi-fi technology and introduced new AI-ready IoT and industrial platforms to challenge Bluetooth dominance.           

Market Segment

This study forecasts revenue at global, regional, and country levels from 2020 to 2033. Spherical Insights has segmented the global IoT chip market based on the below-mentioned segments: 

Global IoT Chip Market, By Type

• Microcontroller Units
• Application-Specific Integrated Circuits
• System-on-Chip
• Field-Programmable Gate Arrays

Global IoT Chip Market, By Product

• Logic Devices
• Connectivity IC
• Sensors
• Processors
• Memory Devices

Global IoT Chip Market, By End-User

• Consumer Electronics
• Industrial
• Automotive
• Healthcare

Global IoT Chip Market, Regional

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • Qatar
  • South Africa
  • Rest of the Middle East & Africa