The IoT Chip Market is segmented by Product (Processor, Sensor, Connectivity IC, and Memory Device), End-user (Healthcare, Consumer Electronics, and Industrial), and Geography.
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Scope of the Report
Key Market Trends
TABLE OF CONTENTS
2018 - 2026
Fastest Growing Market:
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The IoT Chip Market was valued at USD 12133.8 million in 2020, and it is expected to reach a value of USD 25533 million by 2026, at a CAGR of 13.2% over 2021-2026. 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 and 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 transceivers, 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 the increasing IoT devices, the company announced 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. It connects 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).
Rest of Europe
Rest of Asia-Pacific
Rest of the World
Middle-East & Africa
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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 the major factors boosting the growth of IoT chips in the consumer electronics segment.
Moreover, wearable devices witnessed increased adoption in the market. These devices, in the beginning, caused inconveniences 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 as well as extend the battery life of the product.
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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). These factors are expected to fuel the demand for connectivity ICs in the IoT chip market.
The Asia-Pacific region also accounts for a significant share of expenditure in IoT technology, with South Korea and Singapore expected to be among the top global markets to adopt IoT chips. According to the 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. This is also an important factor contributing to the growth of the market in this region.
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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., and Intel Corporation, among others.
December 2018 - Qualcomm introduced the 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, which is anticipated to be the first 5G-capable mobile platform for smartphones and other mobile devices.