Internet Of Things Iot Chip Market Size, Share, Industry Trends and Forecast to 2030

Market Size & CAGR of Internet Of Things Iot Chip market in 2021

The global Internet of Things (IoT) chip market is expected to reach a value of USD 18.22 billion by the end of 2021. The market is projected to grow at a compound annual growth rate (CAGR) of 15.2% during the forecast period from 2021 to 2026. The growing adoption of IoT devices across various industries such as manufacturing, healthcare, transportation, and smart cities is driving the demand for IoT chips.

The increasing focus on connected devices and the need for efficient data processing and communication capabilities are key factors contributing to the growth of the IoT chip market. Additionally, the emergence of 5G technology and the development of edge computing are further fueling the demand for advanced IoT chips.

COVID-19 Impact on the Internet Of Things Iot Chip Market

The COVID-19 pandemic has had a mixed impact on the IoT chip market. On one hand, the temporary shutdown of manufacturing facilities and disruptions in the global supply chain have resulted in delays in production and shipment of IoT chips. On the other hand, the increased adoption of remote working, online learning, and telehealth services has led to a surge in demand for connected devices, thereby boosting the IoT chip market.

The pandemic has accelerated the digital transformation across industries, leading to a greater emphasis on IoT solutions for monitoring and managing various processes remotely. As a result, the demand for IoT chips to power these devices has increased significantly in sectors such as healthcare, e-commerce, and logistics.

Internet Of Things Iot Chip Dynamics

The Internet of Things (IoT) chip market is driven by the increasing deployment of IoT devices in various industries, including smart homes, smart cities, industrial automation, and healthcare. The demand for low-power and high-performance chips to enable seamless connectivity and data processing in IoT applications is propelling the growth of the market.

Furthermore, advancements in wireless communication technologies, such as 5G and Wi-Fi 6, are creating new opportunities for IoT chip manufacturers to develop innovative solutions that address the increasing connectivity requirements of IoT devices. The deployment of edge computing and the integration of artificial intelligence (AI) algorithms in IoT devices are also shaping the dynamics of the market.

Segments and Related Analysis

The IoT chip market can be segmented based on chip type, application, and end-user industry. In terms of chip type, the market is segmented into processors, sensors, connectivity ICs, and memory devices. By application, the market is categorized into smart homes, industrial automation, wearable devices, healthcare, and others. The end-user industries driving the demand for IoT chips include manufacturing, automotive, healthcare, retail, and transportation.

By Region Analysis

The IoT chip market is geographically segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America is the largest market for IoT chips, driven by the presence of key industry players, technological advancements, and high adoption of IoT solutions in the region. Europe is also a significant market due to the increasing investments in smart city projects and industrial automation.

The Asia Pacific region is expected to witness the highest growth in the IoT chip market, supported by the rapid urbanization, increasing disposable income, and rising demand for connected devices in countries like China and India. Latin America and Middle East & Africa are also emerging markets for IoT chips, fueled by the digital transformation initiatives and government support for IoT infrastructure development.

Key Market Players and Competitive Landscape

The key players in the IoT chip market include Intel Corporation, Qualcomm Technologies, MediaTek Inc., Texas Instruments Incorporated, Broadcom Inc., NXP Semiconductors N.V., STMicroelectronics N.V., Microchip Technology Inc., Infineon Technologies AG, and Renesas Electronics Corporation. These companies are focusing on strategic partnerships, product launches, and acquisitions to strengthen their market position and expand their product offerings.

Recent Happenings in the Internet Of Things Iot Chip Market

- In June 2021, Intel Corporation announced the launch of its new family of IoT-optimized processors, the Intel Atom x6000E series, which are designed to deliver enhanced performance and security for edge computing applications.

- In August 2021, Qualcomm Technologies introduced the Snapdragon 778G 5G Mobile Platform, featuring integrated AI and enhanced multimedia capabilities for powering premium-tier smartphones and IoT devices.

- In October 2021, NXP Semiconductors launched the LPC551x/S1x series of microcontrollers, offering advanced security features and high-performance computing for IoT applications in industrial and automotive sectors.

- In January 2022, MediaTek Inc. unveiled the Dimensity 9000 5G chipset, featuring AI processing and ultra-fast connectivity for flagship smartphones and IoT devices.