IoT Chips Market Size was estimated at 26.04 (USD Billion) in 2023. The IoT Chips Market Industry is expected to grow from 28.44 (USD Billion) in 2024 to 75 (USD Billion) by 2035. The IoT Chips Market CAGR (growth rate) is expected to be around 9.22% during the forecast period (2025 - 2035).
The Iot Chips Market has been characterized by substantial growth, which has been fueled by a variety of notable market drivers. The market is being significantly influenced by the increasing demand for connectivity in a variety of sectors, including healthcare, automotive, and industrial automation, as well as the growing adoption of digital devices. Governments worldwide are promoting digital transformation initiatives, which enhance investments in IoT technologies. The demand for advanced and efficient chip technologies is also being driven by the implementation of Industry 4.0 and smart city initiatives. These developments present opportunities for exploration, particularly in emerging economies that are in the process of modernizing their infrastructure.
Companies have the opportunity to capture a larger share of the market by providing customized solutions that are tailored to specific industry requirements and innovate. The most recent developments in this field suggest a trend toward the miniaturization of IoT processors, with the objective of enhancing performance and energy efficiency. Furthermore, there is an increasing emphasis on the integration of machine learning and Artificial Intelligence (AI) capabilities into IoT devices, which enables more intelligent data analytics and more effective decision-making processes. The demand for low-power wireless communication technologies, such as LPWAN, is also increasing, as it addresses the requirement for long-range connectivity with minimal energy consumption.
Furthermore, the collaborations between technology companies and telecom operators are enhancing the development of 5G-enabled IoT chips, paving the way for advancements in various applications. These trends underscore the necessity of ongoing innovation and adaptation in the IoT landscape to satisfy consumer demands and technological advancements as the global market continues to develop.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The IoT Chips Market Industry is experiencing substantial growth driven by the increasing demand for smart devices across various sectors. Statista reports that the number of connected devices worldwide is projected to reach 75 billion by 2025. This rising connectivity not only suggests a higher number of end-user applications but also a greater need for efficient and powerful chips to support these devices. Major technology firms such as Apple, Amazon, and Google are investing heavily in smart home devices and wearables, fueling this trend. Furthermore, the International Telecommunication Union (ITU) has indicated that smart devices can lead to reduced energy consumption by 20-30% in homes, highlighting the efficiency gains that IoT technology can offer. Such trends indicate that demand for IoT chips will continue to escalate as smart technologies integrate further into everyday life.
The integration of Artificial Intelligence (AI) and Machine Learning (ML) technologies with IoT devices is a significant driver for the IoT Chips Market Industry. Research from the Global Technology Hub estimates that the AI market could grow to nearly $118 billion by 2025. This rapid expansion is propelling the need for more sophisticated IoT chips that can process data efficiently and enable real-time decisions. Companies like NVIDIA and Intel are leading the way by developing chips designed specifically for AI and IoT applications, which can process vast amounts of data at higher speeds and lower power consumption. Consequently, the synergy between AI and IoT is expected to accelerate market growth, driving up demand for advanced chip solutions.
Government initiatives aimed at promoting smart infrastructure are fueling the growth of the IoT Chips Market Industry. As reported by government bodies and industry associations, investments in smart city projects are expected to reach $1.6 trillion globally by 2025. These initiatives include projects like smart grids, intelligent transportation systems, and enhanced public safety infrastructures that leverage IoT technology. Major cities such as Singapore and Barcelona are already implementing these systems, driving demand for IoT chips that can effectively support their varied functionalities. Furthermore, the commitment shown by various national governments to enhance urban living standards through technology ensures a steady demand for innovative IoT chip solutions, positioning them as essential components of next-generation infrastructure.
The IoT Chips Market has established a vibrant landscape dominated by various applications that drive innovation and connectivity across sectors. In 2024, this market segment is set to witness significant contributions from the Consumer Electronics sector, which will have a valuation of 10.7 USD Billion and is expected to expand to 28.5 USD Billion by 2035. This growth is propelled by the increasing demand for smart devices and wearables, influencing consumer behavior and lifestyle adaptations. Additionally, the Automotive segment, valued at 6.5 USD Billion in 2024 and projected to reach 15.4 USD Billion by 2035, underscores the importance of IoT in enhancing vehicle connectivity and developing autonomous driving capabilities, justifying its continued investment and innovation.
Healthcare also plays a pivotal role, with a valuation of 4.2 USD Billion expected in 2024, growing to 10.0 USD Billion by 2035, as IoT-enabled devices advance remote patient monitoring and telehealth solutions, thus improving patient outcomes and operational efficiency in healthcare systems. Industrial Automation, while smaller, is notable in its significance, starting at 3.0 USD Billion in 2024 and anticipated to rise to 7.5 USD Billion by 2035, reflecting the increasing adoption of IoT technologies in manufacturing and logistics to streamline operations and enhance productivity.
Furthermore, the Smart Home application exemplifies consumer engagement with IoT, with a valuation of 4.04 USD Billion in 2024, surging to 13.6 USD Billion by 2035, as households increasingly integrate connected devices for convenience, energy management, and home security. The ability of these applications to leverage IoT chips for real-time data analytics and operational enhancement positions them as priority areas for investment. The varied growth trajectories across these applications indicate the robust demand for IoT solutions in the Global market, unveiling both opportunities and challenges for existing and new participants aiming for market growth and technological advancement in the future.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The IoT Chips Market has been prominently categorized by Component Type, encompassing essential elements such as Microcontrollers, Microprocessors, Connectivity ICs, Sensors, and Memory. By 2024, the market is set to reach a valuation of 28.44 USD Billion, reflective of the growing reliance on intelligent devices. Microcontrollers are pivotal due to their role in controlling various IoT devices, driving market demand significantly. Microprocessors, on the other hand, provide the robust processing power necessary for complex applications in smart homes and industries.
Connectivity ICs facilitate seamless communication, empowering devices to interact efficiently, while Sensors, crucial for data collection and environment monitoring, are increasingly integrated into various sectors, from healthcare to agriculture. Memory components support data storage requirements, becoming vital with the expanding volume of data being generated. Overall, the trends in the IoT Chips Market are shaped by advancements in technology, rising adoption of smart devices, and increasing investments in research and development, presenting both challenges and opportunities for market players to innovate and expand their offerings.
The IoT Chips Market, particularly within the Connectivity Technology segment, is witnessing significant growth as it evolves to support the expanding ecosystem of connected devices. By 2024, the market is projected to be valued at 28.44 USD Billion, reflecting the increasing reliance on various connectivity protocols. The importance of technologies such as Wi-Fi and Bluetooth cannot be overstated, as they enable seamless communication among devices, facilitating innovations in smart homes and industrial automation. Zigbee continues to play a crucial role in low-power, high-efficiency applications, particularly in smart energy solutions. At the same time, Cellular technology supports widespread applications for IoT devices in remote areas, enhancing connectivity.
Meanwhile, LoRa is gaining traction for its long-range communication capabilities, making it a strong contender for smart city and agricultural applications. This diverse range of connectivity options underlines the IoT Chips Market segmentation, catering to various industry needs and driving market growth by ensuring that devices can communicate efficiently and effectively, thus contributing significantly to the overall market statistics and trends. As the demand for interconnected solutions continues to rise globally, the focus on enhancing these connectivity technologies is paramount for future innovations.
The IoT Chips Market is expected to show significant growth driven by diverse end-use applications, including Retail, Transportation, Energy Management, Agriculture, and Healthcare. By 2024, the market is projected to reach a value of 28.44 billion USD, reflecting an increasing demand for smart solutions across various sectors. In Retail, IoT chips enhance customer experience through smart shelves and inventory tracking, which is crucial for optimizing operations and meeting consumer expectations. The Transportation sector leverages IoT technology for real-time monitoring and vehicle management, contributing to safer and more efficient logistics.
Energy Management is on the rise as smart grids and connected devices promote energy efficiency and sustainability, particularly in response to global energy challenges. Agriculture increasingly utilizes IoT chips for precision farming, enabling farmers to monitor crop health and optimize resource usage effectively. In the Healthcare sector, IoT solutions enhance patient monitoring and telemedicine services, providing significant improvements in patient care and operational efficiency. The combination of these end-use applications illustrates the robust landscape of the IoT Chips Market, emphasizing innovation and adaptability in various industries while showcasing the importance of smart technology in modern-day operations.
The IoT Chips Market is experiencing substantial growth across various regions, with a total market valuation of 28.44 USD Billion in 2024. North America leads this sector, holding a value of 10.0 USD Billion, owing to its advanced technological infrastructure and high adoption rates of IoT solutions. Europe follows closely with a valuation of 7.0 USD Billion. The APAC region showcases significant potential, estimated at 8.0 USD Billion, as countries innovate rapidly to integrate IoT in various sectors, including manufacturing and healthcare.
South America and the Middle East and Africa (MEA) represent the emerging markets within the IoT Chips Market, valued at 2.0 USD Billion and 1.44 USD Billion respectively, in 2024. The high valuation in North America underscores its dominance and high investments in smart technologies, while Europe remains significant due to its focus on sustainability and smart city developments. APAC's growth is driven by digital transformation initiatives and increasing smartphone penetration, demonstrating a vibrant market landscape. The segmented insights reveal the varied pace and focus of IoT adoption across regions, with North America majorly holding the market share, leading advancements due to technological leadership.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
The IoT Chips Market is characterized by rapid innovation and growth as a result of the increasing demand for connected devices across various sectors such as automotive, healthcare, agriculture, and smart cities. Competition in this market is fierce, driven by advancements in semiconductor technology, the expanding Internet of Things ecosystem, and the need for efficient, low-power solutions. Different players are vying for market share by developing specialized chips that cater to diverse IoT applications, thereby creating an environment where competitive insights revolve around technology capabilities, strategic partnership decisions, and pricing strategies. Factors such as performance benchmarks, power efficiency, and cost-effectiveness significantly shape the competitive landscape, impacting how companies position their offerings in the market.
Renesas Electronics stands out prominently in the IoT Chips Market due to its strong focus on microcontrollers and system-on-chip solutions that are particularly well-suited for IoT applications. The company's strengths lie in its extensive portfolio, which includes products designed for various IoT use cases, from industrial automation to automotive connectivity. Renesas Electronics has developed a reputation for reliability and performance, making it a preferred choice among manufacturers who prioritize quality and durability in their devices. With a well-established global presence, Renesas Electronics continues to expand its influence in emerging markets by leveraging strategic partnerships and collaborations with other technology firms, enhancing its capability to deliver tailored solutions that meet the specific needs of IoT implementations.
NVIDIA has made significant strides in the IoT Chips Market, primarily through its leadership in advanced GPU technology and AI-driven solutions. Known for its high-performance computing capabilities, NVIDIA focuses on providing tools that can support edge computing and real-time data processing in IoT environments. The company offers key products such as Jetson and Xavier platforms that cater to a wide range of IoT applications, enhancing the capabilities of devices through powerful AI processing. NVIDIA has established a strong market presence by targeting sectors such as smart cities, autonomous machines, and healthcare. Moreover, the company's strategic mergers and acquisitions bolster its innovation pipeline and facilitate the integration of cutting-edge technologies into its IoT chip offerings. This focus on AI and machine learning positions NVIDIA favorably within the global competitive landscape, allowing it to maintain competitive advantages while continuously addressing the evolving demands of the IoT ecosystem.
The IoT Chips Market has been experiencing significant developments recently, with key players such as Renesas Electronics, NVIDIA, Infineon Technologies, and NXP Semiconductors actively expanding their portfolios to meet rising demand across various sectors. In August 2023, Qualcomm announced the launch of its latest IoT chipset, designed for enhanced connectivity and efficiency in smart devices, underscoring the competitive landscape. Additionally, Texas Instruments reported substantial growth in market valuation due to increased investment in research and development and strategic partnerships focused on smart home technologies. On the merger and acquisition front, Marvell Technology finalized its acquisition of Cavium in September 2023, aimed at bolstering its offerings in IoT solutions.
Furthermore, Samsung Electronics made headlines with its acquisition of a semiconductor fab company in July 2023, aimed at boosting production capacity for IoT chips. The market has seen a consistent uptick in valuation, driven by the proliferation of smart devices and increased demand for connectivity solutions, which is reshaping industry dynamics and fostering innovation among major players like Broadcom, MediaTek, and Analog Devices. These developments signify a dynamic landscape where companies are striving to cater to IoT's evolving requirements on a global scale.
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 26.04 (USD Billion) |
| MARKET SIZE 2024 | 28.44 (USD Billion) |
| MARKET SIZE 2035 | 75.0 (USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 9.22% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Renesas Electronics, NVIDIA, Infineon Technologies, NXP Semiconductors, Skyworks Solutions, Marvell Technology, STMicroelectronics, Microchip Technology, Intel, Texas Instruments, Samsung Electronics, Qualcomm, Analog Devices, Broadcom, MediaTek |
| SEGMENTS COVERED | Application, Component Type, Connectivity Technology, End Use, Regional |
| KEY MARKET OPPORTUNITIES | 5G network expansion, Smart home device growth, Industrial automation adoption, Wearable technology integration, Sustainable energy solutions integration |
| KEY MARKET DYNAMICS | growing demand for connectivity, advancements in edge computing, increasing adoption of smart devices, rising focus on energy efficiency, expanding industrial IoT applications |
| COUNTRIES COVERED | North America, Europe, APAC, South America, MEA |
IoT Chips Market Highlights:
Frequently Asked Questions (FAQ) :
The Global IoT Chips Market is expected to be valued at 28.44 billion USD in 2024.
By 2035, the Global IoT Chips Market is anticipated to reach a value of 75.0 billion USD.
The expected CAGR for the Global IoT Chips Market from 2025 to 2035 is 9.22%.
In 2024, North America is projected to hold the largest market share, valued at 10.0 billion USD.
The estimated market size for the Automotive application is expected to be 15.4 billion USD in 2035.
Prominent players in the market include Renesas Electronics, NVIDIA, Infineon Technologies, and Qualcomm.
The market size for Consumer Electronics is projected to be 28.5 billion USD by 2035.
The Smart Home segment is anticipated to be valued at 4.04 billion USD in 2024.
The expected market value for the Healthcare application in 2024 is 4.2 billion USD.
By 2035, the APAC region is projected to reach a market size of 22.5 billion USD.
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Senior Research Analyst Ankit gupta is an analyst in market research industry in ict and semi industry. with post-graduation in "telecom and marketing management" and graduation in "electronics and telecommunication" vertical he is well versed with recent development in ict industry as a whole. having worked on more than 150+ reports including consultation for fortune 500 companies such as microsoft and rio tinto in identifying solutions with respect to business problems his opinions are inclined towards mixture of technical and managerial aspects.
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