IoT Chip Market Insights
The global IoT chip market is expected to generate revenue amounting to USD 392.05 billion in 2020, and is projected to reach to USD 557.08 billion by 2026, growing at a CAGR of 6.03% over the forecast period. The development of internet connectivity in technologically advancing countries and the growth of low-cost smart wireless sensor networks are driving the market growth for IoT chip. The growing adoption of new technologies such as 5G Network, artificial intelligence, machine learning, smart homes, smart cities, as well as an increase in the IoT connected devices in electronics and automotive sectors are expected to drive market growth during the forecast period. The growing demand for end use applications such as healthcare, automotive & transportation, manufacturing, BFSI, aerospace & defense, and oil & gas among others is driving the market growth. Significant funding by the government for R&D related to IoT across various regions including North America, Europe, Asia Pacific, and Central & South America is further projected to propel the market growth of IoT Chip. The growth of application-specific MCUs and flexible SoC-type designs, along with adoption of IPv6, and AI are some of the major factors expected to boost the market growth for IoT chips during the forecast period. However, security and privacy of user data and lack of common protocols and communication standards are likely to hamper the market growth during the forecast period.
IoT Chip Market Size: By Segmentation
The global IoT chip market is segmented on the basis of hardware into processors, connectivity integrated circuits (ICs), sensors, memory devices, and logic devices among others. The logical device segment is expected to grow at a high CAGR in the global IoT chip market during the forecast period. The most common type of logic device used is a field-programmable gate array (FPGA). FPGA is an IC that is designed to be configured by a customer or designer even after manufacturing. FPGA offers advantages such as rapid prototyping, shorter time-to-market, ability to reprogram in the field for debugging, and long product life cycles. Increase in the shipment of logic devices and rising demand for wearables such as smartwatches, especially in developing economies is driving the market growth for logic devices.
On the basis of end use, the global IoT Chip market is segmented into wearable devices, healthcare, consumer electronics, automotive & transportation, building automation, manufacturing, aerospace & defense, retail, and BFSI among others. The building automation segment is expected to hold the largest market share during the forecast period. The growing demand for energy-efficient solutions, enhanced security, and increased venture capital funding are some of the major factors expected to propel the market growth during the forecast period. Growing awareness of energy conservation, stringent legislation and building directives, promotion of numerous smart grid technologies is driving the growth of the building automation market. The aerospace & defense segment is expected to grow at a high CAGR during the forecast period. The aerospace & defense industry uses sensors to capture comprehensive machine data. These sensors are also used on key equipment, machines, and vehicles among others. IoT chips offer numerous opportunities to airlines for improvement of baggage handling and equipment monitoring. These are some of the major factors expected to propel the market growth for aerospace & defense sector.
IoT Chip Market Size: By Region
On the basis of region, the market of IoT Chip is segmented into North America, Europe, Asia Pacific, Central & South America, and Middle East & Africa. The North America region is expected to hold the largest market share during the forecast period. The presence of multinational corporations, such as Intel Corporation, Texas Instruments Incorporated, Dell, and Cisco Systems, in the IoT ecosystem are driving the market growth in the region. Increased R&D in the field of IoT and the increasing demand for improved lifestyles are the major factors propelling the market growth. The Asia Pacific region is expected to grow at a high CAGR during the forecast period. The expanding trend of smart-cities and home automation in the region is boosting the market growth.
IoT Chip Market Share & Competitor Analysis
Some of the key players operating in the IoT chip market include: Qualcomm Incorporated, NXP Semiconductors N.V., Microchip Technology Inc., Cypress Semiconductor Corporation, Intel Corporation, Texas Instruments Incorporated, Renesas Electronics Corporation, Huawei Technologies Co., Ltd., NVIDIA Corporation, TE Connectivity Ltd., Nordic semiconductor, MediaTek Inc., Marvell Technology Group Ltd., Gainspan, Expressif Systems, Dialog Semiconductor, Samsung Electronics, STMicroelectronics N.V., Silicon Labs, and Advanced Micro Devices, among others.
Please note: This is not an exhaustive list of companies profiled in the report.
In March 2020, Marvell Technology Group launched the third generation ARM server processor ThunderX3. ThunderX2 was the first ARM server silicon that was deemed viable and competitive against Intel and AMD products.
In March 2020, Microchip expanded its silicon carbide (SiC) family of power electronics to provide systemlevel improvements in efficiency, size, and reliability. Microchip’s SiC family includes the commercially qualified Schottky Barrier Diode (SBD)-based power modules in 700, 1200, and 1700 V variants.
In November 2019, STMicroelectronics N.V. launched the ST8500 PLC wireless_IMAGEST8500 smartmeter chipset which integrates both radio frequency (RF) and powerline communication (PLC).
IoT Chip Market: By Hardware
IoT Chip Market: By Power Consumption
IoT Chip Market: By End-Use
IoT Chip Market: By Region
The global IoT Chip Market has been studied from the year 2017 till 2026. However, the CAGR provided in the report is from the year 2018 to 2026. The research methodology involved three stages: Desk research, Primary research, and Analysis & Output from the entire research process.
The desk research involved a robust background study which meant referring to paid and unpaid databases to understand the market dynamics; mapping contracts from press releases; identifying the key players in the market, studying their product portfolio, competition level, annual reports/SEC filings & investor presentations; and learning the demand and supply side analysis for the IoT Chip Market.
The primary research activity included telephonic conversations with more than 50 tier 1 industry consultants, distributors, and end-use product manufacturers.
Finally, based on the above thorough research process, an in-depth analysis was carried out considering the following aspects: market attractiveness, current & future market trends, market share analysis, SWOT analysis of the companies and customer analytics.
We value your investment and offer free customization with every report to fulfil your exact research needs.