The IoT chip market is expected to register a CAGR of 13.5% during the forecast period 2019-2024. In the near future, 5G Network, artificial intelligence, machine learning, smart homes, smart cities, as well as an increase in the IoT connected devices in electronics and automotive segment are expected to drive market growth.
- The Internet & Television Association estimated that by 2020, the number of IoT connected devices is expected to reach 50.1 billion from 34.8 billion in 2018.
- The growth of the market can be majorly attributed to the Integration of connectivity in a large number of devices and applications along with the development of various networking protocols that have appreciably advanced the growth of the IoT chip market across various end-user industries.
- A majority of these new IoT inventions will be implemented with a single system on a chip (SoC) to provide high levels of integration and it also allows the devices to operate with high power efficiency and security as it packs processors (MCU), RF transceiver, memory, power management, connectivity, and sensors in a single unit.
- Moreover, Google is taking major steps in hardware and software optimization to bring its machine learning and analytics capabilities to the edge networks and even to the individual IoT devices. This is aimed to deal better with the data generated by increasing IoT devices, the company said at its Cloud Next technology conference.
Scope of the Report
An IoT chip is a small electronic device embedded in objects, machines and electronic devices that connect to wireless networks and sends and receives data. Sometimes referred to as a "radio chip", the IoT chip contains the same technology and data circuits found in mobile phones but without a display or a keypad.
Key Market Trends
Consumer Electronics Segment is Expected to Expand With a Significant Rate
- Currently, IoT is majorly adopted in home electronics, from entertainment to smart home control. Smart TV sets, washing machines, and home appliances are increasingly adopting IoT approaches and getting interconnected.
- Coupled with this, an increase in the demand for application-specific microcontroller units and flexible SoC type architecture are major factors boosting the growth of IoT chips in the consumer electronics segment.
- Moreover, recently, wearable devices have witnessed increased adoption in the market. These devices, in the beginning, caused an inconvenience due to charging problems. In addition, the power provided by these batteries was also not sufficient to perform the standard computations and operate available features for the user throughout the day.
- These problems called for a huge demand for both hardware and software design improvements of the ultra-powered chips to cater to the communication requirements among the users and also extend the battery life of the product.
Asia Pacific Occupies the Largest Market Share
- The ongoing technological advancements in IoT creates a lot of demand for better wireless connectivity solutions to cater to the newer segments of automation and transportation, owing to the expanding trend of smart-cities and home automation in the region (such as intelligent transportation system and connected cars), which are likely to fuel the demand for connectivity ICs in the IoT chip market.
- Asia-Pacific region also accounts for a significant share of spending in IoT technology with South Korea and Singapore expected to be among the top global markets to adopt IoT chips. According to data from the Organization for Economic Co-operation and Development, South Korea is the first country in the world to have more things connected to the Internet per habitats, followed by Denmark and Switzerland.
- Further, India's vision to transform 100 cities into smart cities is expected to create a huge demand for IoT devices in smart homes and automotive sector, which is also an important factor contributing to the growth of the market in this region.
The IoT chip market is highly competitive with the presence of many big and small players in the market running their business in domestic as well as international boundaries. The market appears to be moderately concentrated with the major players adopting strategies like product innovation and mergers and acquisitions. Some of the key players in the market are Qualcomm Technologies Inc., Samsung Electronics Co. Ltd., Analog Devices Inc., Intel Corporation among others.
- December 2018 - Qualcomm introduced next-generation cellular chipset purpose-built for IoT. This modem is purpose-built for IoT applications such as asset trackers, health monitors, security systems, smart city sensors, and smart meters, as well as a range of wearable trackers
- August 2018 - Qualcomm announced that its upcoming flagship mobile platform will feature a system-on-chip (SoC) built on the 7nm process node. The 7nm SoC can be paired with the Qualcomm Snapdragon X50 5G modem, anticipated to be the first 5G-capable mobile platform for smartphones and other mobile devices.
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