IoT Chip Market - Forecasts from 2025 to 2030

The IoT Chip Market is expected to grow from US$402.859 billion in 2025 to US$609.701 billion in 2030, at a CAGR of 8.64%.

An IoT chip is a small electronic device that is integrated into numerous electronic devices, machines, and objects. The objective of these chips is to connect the devices to wireless networks and receive or send data.

IoT Chip Market Growth Drivers:

• The growth of this market is mainly attributed to the growing demand for electronic devices.

Impressive economic growth, rising disposable income, and improvement in the standard of living are driving the demand for electronic devices, especially in developing economies such as China, India, and Brazil, among others. The miniaturization of electronic devices is leading to a more complex design that requires several functionalities to be deployed on a single chip, which is boosting the growth of the market. The demand for such designs is increasingly gaining traction in the market owing to their burgeoning use across industries such as consumer electronics, automotive, communication and technology, and healthcare, among others.

The growing penetration of the Internet of Things (IoT) in the automotive and other industries is one of the major drivers that are boosting market growth. Therefore, key players are partnering together to simplify the deployment of the Internet of Things (IoT) for industries. For example, in March 2019, AT&T and Vodafone announced a collaboration on IoT in everything related to connected vehicles for the North American, European, and African markets.

In addition, increasing household consumption expenditure also plays an important role in increasing the demand for consumer electronics, which further increases the IoT Chips. For instance, as per the World Bank, the household's final consumption expenditure has grown remarkably from US$37.783 trillion in 2010 to US$48.611 trillion by 2018(Source: The World Bank Group). Moreover, companies are increasing their research and development expenditure to manufacture cost-effective wearable technology for the masses. Therefore, increasing research and development expenditure, coupled with rising demand for wearable technology, is augmenting the demand for these chips over the forecast period.

• Rising penetration of IoT

The Internet of Things (IoT) is one of those technologies that is set to become ubiquitous in almost every industry. The affordability of sensor technology is playing an important role in the burgeoning adoption of IoT across industries. Its penetration in industries is leading to more complexity at the circuit level, which requires the integration of a number of designs on a single chip, thus boosting the demand for IoT chips.

As IoT chip applications are gaining traction in the market due to their use in a variety of applications, including autopilot cars, electronic devices, and home automation, the demand for IoT chips is expected to grow in the next few years. In the automotive sector, IoT has gained adoption in several areas, such as in-vehicle infotainment, predictive maintenance, security, surveillance, and safety, as well as cognitive insights for management, among others, leading to a significant increase in demand for more sophisticated electronic control units, thereby boosting the market.

• Rising investments in 5G Technology

In the next few years, internet penetration is expected to grow along with rapid advancements in wireless technology. A significant surge in the number of internet users across the globe is further anticipated to drive investments by the major service providers in order to develop more fast and more advanced services to cater to the growing user needs. For instance, in 2010, there were only 28.753% of people across the globe were using the internet, and this number increased to 49.723% by 2017 (Source: The World Bank Group).

A rising trend is expected during the coming years, which will further snowball the demand for fast and high-speed internet. Budding investments for the deployment of 5G technology are further expected to drive the growth of the market during the forecast period and beyond. The incorporation of 5G technology is considered the next generation of mobile internet connectivity, which is expected to offer better speeds and more reliable connections than the current technology. Moreover, 5G is expected to operate on much higher frequencies, which is further anticipated to enable the adoption of new interface and component technologies, which may further positively impact the growth of the market.

IoT Chip Market Segment Analysis:

• The Automotive Segment is projected to show robust growth

On the basis of application, the global IoT chip market has been classified into consumer electronics, healthcare, automotive, industrial, BFSI, communications and technology, and others. The automotive segment is projected to show robust growth opportunities for the market to expand throughout the forecast period and beyond on account of significant growth in the adoption of connected and autonomous vehicles.

Connected vehicles are considered to have the potential to transform the overall transportation network by creating safer road transport. In addition, connected vehicle technology will change that paradigm by giving people the tools to avoid crashes, so an increasing trend of their adoption is expected, which is further anticipated to positively impact the growth of the market during the coming years. Similarly, rapid development and innovation in the Advanced Driver Assistance Systems are also projected to augment the market growth on account of rising investments in Level 4 and Level 5 autonomous vehicles, wherein Level 4 no human interaction and in Level 5, human driving is completely eliminated, to make these systems safe, better connectivity technology is required for safe and reliable use.

IoT Chip Market Segmentation:

• By Connectivity
• Cellular
• Wi-Fi
• Bluetooth
• ZigBee
• NFC
• MQQT
• Others
• By End-User
• Consumer Electronics
• Healthcare
• Automotive
• Industrial
• BFSI
• Communications and Technology
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• India
• Japan
• South Korea
• Indoensia
• Thailand
• Others