IoT Semiconductor Global Market Report 2026

IoT semiconductors are specialized chips and integrated circuits designed to provide connectivity, processing, and sensing capabilities in Internet of Things (IoT) devices. These semiconductors include microcontrollers, sensors, wireless communication modules, and power management units, enabling efficient data collection, transmission, and real-time decision-making in connected environments.

The primary types of IoT semiconductors include IoT sensors, IoT processors, IoT chips, and other components. IoT sensors are devices that gather and transmit data from the physical environment to a network, allowing for real-time monitoring and control of systems such as smart homes, healthcare, transportation, and industrial applications. These products include connectivity integrated circuits (ICs), logic devices, memory devices, processors, and other components. They cater to a wide variety of end-users, including sectors such as banking, financial services, insurance, healthcare, retail, manufacturing, information technology, telecommunications, and others.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have impacted the IoT semiconductor market by increasing the cost of importing critical components such as microcontrollers, sensors, and wireless communication chips. This has affected production timelines and pricing across consumer electronics, industrial automation, and automotive connectivity segments, particularly in regions like Asia-Pacific and North America, which are major manufacturing and consumption hubs. Some segments benefit from tariffs as local manufacturers gain a competitive edge, encouraging regional production and innovation in cost-efficient IoT solutions.

The IoT semiconductor market research report is one of a series of new reports from The Business Research Company that provides IoT semiconductor market statistics, including the IoT semiconductor industry global market size, regional shares, competitors with the IoT semiconductor market share, detailed IoT semiconductor market segments, market trends, and opportunities, and any further data you may need to thrive in the IoT semiconductor industry. This IoT semiconductor market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The iot semiconductor market size has grown rapidly in recent years. It will grow from $589.7 billion in 2025 to $682.49 billion in 2026 at a compound annual growth rate (CAGR) of 15.7%. The growth in the historic period can be attributed to growing adoption of smart home devices, increase in wearable technology, rise of industrial automation, improvements in wireless communication standards, demand for healthcare monitoring devices.

The iot semiconductor market size is expected to see rapid growth in the next few years. It will grow to $1222.8 billion in 2030 at a compound annual growth rate (CAGR) of 15.7%. The growth in the forecast period can be attributed to expansion of smart cities, growth in connected automotive applications, rising demand for predictive maintenance solutions, integration of AI at the edge, proliferation of environmental monitoring devices. Major trends in the forecast period include low-power and energy-efficient iot semiconductors, miniaturization of chips for compact devices, advanced sensor integration, wireless communication optimization, edge computing and real-time processing.

The rising demand for connected devices is expected to drive the growth of the IoT semiconductor market going forward. Connected devices refer to electronic devices that can communicate and exchange data with other devices or networks over the internet or local networks, enabling remote monitoring, control, and automation. The growing demand for connected devices is driven by technological advancements, greater internet connectivity, and the increasing need for automation, convenience, and real-time data access across various sectors. IoT semiconductors power connected devices by providing essential hardware components-such as sensors, processors, and communication modules-that enable seamless data exchange and connectivity between devices and networks. For example, in February 2023, according to BuildOps Inc., a US-based software-as-a-service (SaaS) company, IoT-connected devices increased by 25% from 2021 to 2022, followed by a 28% increase from 2022 to 2023. Therefore, the rising demand for connected devices is fueling the IoT semiconductor market.

Leading companies in the IoT semiconductor market are focusing on developing innovative products, such as high-performance dual-range motion sensors, to enhance precision and versatility in connected devices. High-performance dual-range motion sensors are advanced sensors capable of accurately detecting both small and large movements across two measurement ranges, enabling precise motion tracking in various IoT applications. For example, in June 2025, STMicroelectronics N.V., a Switzerland-based semiconductor company, launched the ISM6HG256X, a state-of-the-art three-in-one MEMS motion sensor designed for industrial IoT applications. The sensor incorporates edge AI capabilities, including a machine learning core, finite state machine, and adaptive self-configuration, enabling real-time event detection and context-aware sensing directly on the device, thereby reducing power consumption and latency. Built for demanding industrial environments, it comes in a compact 2.5 mm X 3 mm package and operates across a wide temperature range of -40°C to 105°C. These features make it suitable for industrial IoT applications such as asset tracking, condition monitoring, robotics, and wearable safety devices for workers.

In March 2025, Trasna Solutions Technologies Limited, an Ireland-based technology company specializing in end-to-end mobile IoT solutions, acquired u-blox's cellular IoT module business for an undisclosed amount. This acquisition is aimed at strengthening Trasna's IoT connectivity offerings while enabling u-blox to focus more on its core positioning business. u-blox Holding, a Switzerland-based semiconductor company, provides semiconductor chips, modules, and IoT services.

Major companies operating in the iot semiconductor market are Qualcomm Technologies Inc., NXP Semiconductors N.V., Texas Instruments Inc., STMicroelectronics, Nordic Semiconductor ASA, Infineon Technologies AG, Analog Devices Inc., Renesas Electronics Corporation, Silicon Labs, Semtech Corporation, Ambiq Micro Inc., Sony Semiconductor Solutions Corporation, Skyworks Solutions Inc., Realtek Semiconductor Corporation, ON Semiconductor Corporation, Microchip Technology Inc., Broadcom Inc., Qualitas Semiconductor, Espressif Systems, ARM Ltd., Samsung Electronics Co. Ltd., Taiwan Semiconductor Manufacturing Company Limited, Murata Manufacturing Co. Ltd., Maxim Integrated

North America was the largest region in the iot semiconductor market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the iot semiconductor market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the iot semiconductor market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The IoT semiconductor market consists of sales of low-power microcontrollers, wireless communication modules, system-on-chip (SoCs), sensors, and power management ICs. Values in this market are 'factory gate' values, meaning the value of goods sold by semiconductor manufacturers, whether to device makers, system integrators, industrial users, or directly to end customers. The value of goods in this market includes related services such as software integration, firmware updates, and security enhancements.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

IoT Semiconductor Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses iot semiconductor market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for iot semiconductor ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The iot semiconductor market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Functional Role: Internet Of Things Sensors; Internet Of Things Processors; Internet Of Things Chips; Other Types
• 2) By Product: Connectivity Integrated Circuits (ICs); Logic Devices; Memory Devices; Processors; Other Products
• 3) By End-User: Banking, Financial Services, And Insurance; Healthcare; Retail; Manufacturing; Information Technology And Telecommunications; Other End-Users
• Subsegments:
• 1) By Internet of Things Sensors: Environmental Sensors; Motion and Position Sensors; Biometric Sensors; Optical Sensors
• 2) By Internet of Things Processors: Microcontrollers (MCUs); Digital Signal Processors (DSPs); Application Processors; Artificial Intelligence-Optimized Processors
• 3) By Internet of Things Chips: Wireless Communication Chips; Power Management Chips; Embedded Security Chips; Edge Artificial Intelligence Chips
• 4) By Other Types: Power Management ICs (PMICs); RF Transceivers & RF Front-End Modules; Connectivity SoCs
• Companies Mentioned: Qualcomm Technologies Inc.; NXP Semiconductors N.V.; Texas Instruments Inc.; STMicroelectronics; Nordic Semiconductor ASA; Infineon Technologies AG; Analog Devices Inc.; Renesas Electronics Corporation; Silicon Labs; Semtech Corporation; Ambiq Micro Inc.; Sony Semiconductor Solutions Corporation; Skyworks Solutions Inc.; Realtek Semiconductor Corporation; ON Semiconductor Corporation; Microchip Technology Inc.; Broadcom Inc.; Qualitas Semiconductor; Espressif Systems; ARM Ltd.; Samsung Electronics Co. Ltd.; Taiwan Semiconductor Manufacturing Company Limited; Murata Manufacturing Co. Ltd.; Maxim Integrated
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain.
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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