IoT Chip - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

According to Mordor Intelligence, the ioT chip market size is expected to grow from USD 0.67 trillion in 2025 to USD 0.77 trillion in 2026 and is forecast to reach USD 1.51 trillion by 2031 at 14.45% CAGR over 2026-2031.

This report is Segmented by Product (Processor, Sensor, and More), End-User (Healthcare, Consumer Electronics, and More), Technology Node ( >=90 Nm, and More), Connectivity Technology (Bluetooth/BLE, Wi-Fi, and More), Processor Architecture (Arm-Based, RISC-V, and More), and Geography (North America, Europe, Asia Pacific, South America, and Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

Global IoT Chip Market Trends and Insights

Proliferation of Connected Consumer and Wearable Devices

Demand for ambient computing experiences is lifting volumes for ultra-low-power chips that keep sensors and radios active at all times. Health-focused wearables now integrate medical-grade photoplethysmography, temperature, and ECG sensors that need secure data paths to comply with tightening privacy rules. Qualcomm reported USD 1.5 billion in IoT revenue for Q1 2025, up 36% year over year, underscoring consumer momentum. As 5G modems converge with on-device AI, designers shift to heterogeneous SoCs that fuse application processors, NPUs, and connectivity on one die, driving silicon-area efficiency across the Global IoT Chip market.

Industry 4.0-Led Demand for Low-Power MCUs

Factories deploying digital twins and predictive maintenance lean on microcontrollers that ingest vibration, thermal, and acoustic data locally, cutting network latency. Intel's smart-factory line achieved near-theoretical yield through real-time lithography calibration, proving the value of edge analytics inside harsh environments. Rugged MCUs now combine machine-learning instruction sets with secure boot and OTA updates, positioning the Global IoT Chip market for sustained industrial orders through the decade.

End-to-End Security and Privacy Vulnerabilities

The White House Cyber Trust Mark requires compliance with NIST IR 8425, raising the bar for secure-element integration in resource-limited devices. Cost-sensitive OEMs face additional silicon area and firmware validation expenses. Rising quantum-computing threats press chipmakers to support lattice-based cryptography, delaying product launches and tempering short-term Global IoT Chip market growth.

Other drivers and restraints analyzed in the detailed report include:

1. Automotive ADAS and V2X Silicon Requirements
2. Edge-AI Inference Inside IoT SoCs
3. Legacy-Node (28/40 nm) Foundry Capacity Crunch

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Processors generated the largest revenue slice in 2025 at 25.10%, anchored by single-die combos that merge CPU, NPU, and multi-protocol radios. Enhanced integration trims printed-circuit area and shortens certification cycles, fortifying processor dominance in the Global IoT Chip market. Security ICs are poised for the fastest expansion with a 17.55% CAGR as zero-trust architectures embed hardware roots-of-trust into every node of the IoT Chip market. Sensor, connectivity, memory, logic, and power-management lines track broader unit shipment curves, with specialized low-power DRAM commanding premium price points.

Upgrades in in-package voltage regulation now supply sub-0.5 V rails for AI accelerators, extending battery life in wearables. MEMS makers push shippable pressure sensors below 0.8 mm height, opening design space in rings and earbuds. SEALSQ secured contracts for 24 million quantum-resistant chips that protect UK smart meters, showcasing a security shift across critical infrastructure.

Industrial and manufacturing retained a 22.20% share in 2025 as digital-twin rollouts scaled across Asia Pacific plants. Demand for condition-monitoring MCUs sustains double-digit unit growth through 2030. Automotive leads in CAGR at 16.45% as software-defined vehicles centralize compute domains. The IoT Chip market size for automotive silicon is projected to climb sharply on the back of zonal architectures that cut harness weight and enable OTA feature upsells.

Healthcare extends beyond remote monitoring to regulated device connectivity frameworks, strengthening demand for certified secure elements. Retail pilots using AI-powered inventory robots enlist vision-optimized SoCs to reconcile shelf stock in real time, diversifying the IoT Chip market revenue base. Building-automation orders rise as passive optical networks connect HVAC, lighting, and security over a single fibre backbone.

Complete Report Scope:

• By Product
  • Processor
  • Sensor
  • Connectivity IC
  • Memory Device
  • Logic Device
  • Power-Management IC
  • Security IC
• By End-user
  • Healthcare
  • Consumer Electronics
  • Industrial and Manufacturing
  • Automotive
  • BFSI
  • Retail
  • Building Automation
  • Other End-users
• By Technology Node
  • >=90 nm
  • 65-45 nm
  • 40-28 nm
  • 22-16 nm
  • <=14 nm
• By Connectivity Technology
  • Bluetooth / BLE
  • Wi-Fi (802.11x)
  • NB-IoT / LTE-M
  • 5G RedCap
  • Ultra-Wideband (UWB)
  • Thread / Zigbee
  • Satellite IoT
• By Processor Architecture
  • Arm-based
  • RISC-V
  • x86
  • Other / Hybrid
• By Geography
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Rest of South America
  • Europe
    • Germany
    • United Kingdom
    • France
    • Italy
    • Spain
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • South Korea
    • India
    • Singapore
    • Australia
    • Rest of Asia-Pacific
  • Middle East and Africa
    • Middle East
      • Saudi Arabia
      • United Arab Emirates
      • Turkey
      • Rest of Middle East
    • Africa
      • South Africa
      • Nigeria
      • Egypt
      • Rest of Africa

Geography Analysis

Asia-Pacific contributed 34.40% of the IoT Chip market revenue in 2025, propelled by Taiwan's 63.8% share of total semiconductor output and China's capacity build-out. Vertical integration from wafer to packaging lowers lead times, letting OEMs iterate faster. Yet export controls nudge multinational OEMs toward capacity hedging in Japan, India, and the United States, reshaping the IoT Chip market supply map.

The Middle East and Africa exhibit the fastest trajectory at 18.35% CAGR. Gulf smart-city budgets allocate billions for traffic analytics, energy dashboards, and public-safety sensor grids, demanding robust, wide-temperature-range silicon. 5G rollouts across North Africa unlock low-latency telemetry for logistics corridors stretching from ports to inland free-trade zones, enlarging the endpoint base for the IoT Chip market.

North America and Europe remain innovation centers. The U.S. CHIPS Act channels USD 50 billion into fabs across 16 states, doubling domestic advanced-node capacity to 22% by 2027. Europe's Chips Act targets a 20% global share by 2030, with Intel and STMicroelectronics investing in Germany and France clusters. These regions prioritize high-value automotive and medical silicon, forming lucrative slices of the IoT Chip market size despite moderate unit growth.

1. Qualcomm Technologies Inc.
2. Intel Corporation
3. Texas Instruments Incorporated
4. NXP Semiconductors N.V.
5. Cypress Semiconductor Corporation (Infineon)
6. MediaTek Inc.
7. Microchip Technology Inc.
8. Samsung Electronics Co., Ltd.
9. Silicon Laboratories Inc.
10. TDK InvenSense Inc.
11. STMicroelectronics N.V.
12. Nordic Semiconductor ASA
13. Analog Devices, Inc.
14. Broadcom Inc.
15. Infineon Technologies AG
16. Renesas Electronics Corporation
17. ON Semiconductor Corporation
18. Arm Holdings plc
19. NVIDIA Corporation
20. Marvell Technology Group Ltd.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support