The global IoT chip market is estimated to grow from USD 392.0 billion in 2020 to USD 525.4 billion by 2025, at a CAGR of 6.0%. The growth of application-specific MCUs and flexible SoC-type designs, adoption of IPv6, which provides more IP address space, technologies such as AI fueling IoT adoption, development of internet connectivity, and growth of low-cost smart wireless sensor networks are expected to drive the market growth. However, concerns regarding the security and privacy of user data hamper the growth of the IoT chip market.
The consumer electronics end-use application mainly comprises smart consumer appliances. With the evolution of consumer appliances that can connect to the Internet and smartphones, the growth of IoT technology in the consumer electronics segment is expected to receive a boost. Smart appliances, also known as intelligent appliances, have the ability to measure and control their energy usage and communicate it to homeowners and utility departments. These appliances can be connected to smart energy meters or home energy management systems and can help reduce electricity usage during off-peak hours. The growth of this segment is attributed to the increase in the market of smart home appliances such as smart TVs, smart speakers, smart washing machines, and smart refrigerators.
“Aerospace & defence end-use application is projected to be the fastest-growing segment during the forecast period”
The demand for IoT chip is expected to significantly increase in aerospace & defence as IoT technology will provide increased insights through sensors data, thereby helping the government increase the overall efficiency, safety, and control of flights. This will lead to improved maintenance as performance data can be analyzed in real time, and ground crew and engineers can diagnose issues quickly and reduce downtime, thereby reducing cost.
IoT in the aerospace & defence segment provides connectivity and integration and equips the manufacturer with a wide-ranging view of their operations. The aerospace & defence end-use application uses sensors to capture comprehensive machine data. These sensors can be used on key equipment, machines, and vehicles. IoT offers numerous opportunities to airlines for the improvement of baggage handling and equipment monitoring.
“Devices with 1–3 W power consumption held the major share in the overall IoT chip market in 2019”
Few consumer electronic devices, industrial application devices, and healthcare application devices consume power in the range of 1–3 W. Some major devices with 1–3 W power consumption include fitness & heart rate monitors, blood pressure monitors, blood glucose meters, continuous glucose monitors, pulse oximeters, automated external defibrillators, programmable syringe pumps, wearable injectors, and multi-parameter monitors. Consumer electronic devices that majorly contribute to the 1–3 W power consumption segment include smart TVs, smart refrigerators, smart dryers, smart dishwashers, smart deep freezers, and other home automation devices.
“APAC is expected to hold the second-largest share in the global IoT chip market in 2020”
Growing penetration of the Internet across commercial as well as residential spaces, high consumer base, increasing disposable income, and improving IT infrastructure are some of the key determinants supplementing the growth of the IoT chip market in APAC. Moreover, the adoption of cloud-based services and the rising trend of industrial automation are the key growth drivers of the IoT chip market for commercial applications in countries such as China, South Korea, and Japan.
The commercialization of the applications of the IoT is estimated to be in its introductory stages in the developing economies of APAC. However, countries such as China, India, and Japan are aggressively taking initiatives, e.g., high investments in R&D, to encourage the adoption of IoT in this region, which is expected to boost the demand for IoT chips in the future.
In the process of determining and verifying the market size for several segments and subsegments gathered through secondary research, extensive primary interviews have been conducted with key industry experts in the IoT chip market.
The break-up of the primary participants for the report has been shown below:
- By Company Type: Tier 1 – 55%, Tier 2 – 25%, and Tier 3 – 20%
- By Designation: Directors – 50%, Managers – 20%, Vice Presidents – 25%, and Others – 5%
- By Region: North America – 40%, Europe – 35%, APAC – 15%, and RoW – 10%
Major players in the global IoT chip market are Intel Corporation (US), Texas Instruments Incorporated (US), Qualcomm Incorporated (US), NXP Semiconductors N.V. (Netherlands), MediaTek Inc. (Taiwan), Marvell Technology Group Ltd. (Bermuda), Microchip Technology Inc. (US), Cypress Semiconductor Corporation (US), Renesas Electronics Corporation (Japan), Huawei Technologies Co., Ltd. (China), NVIDIA Corporation (US), Samsung Electronics (South Korea), Advanced Micro Devices (US), STMicroelectronics N.V. (Switzerland), TE Connectivity Ltd (Switzerland), Nordic Semiconductor (Norway), GainSpan (US), Expressif Systems (China), Dialog Semiconductor (UK), and Silicon Labs (US).
Research Coverage:
This research report categorizes the global IoT chip market based on hardware, end-use application, power consumption, and region. The report describes the major drivers, restraints, challenges, and opportunities pertaining to the IoT chip market and forecasts the market until 2025.
Key Benefits of Buying the Report
The report would help leaders/new entrants in this market in the following ways:
1. This report segments the IoT chip market comprehensively and provides the closest market size projection for all subsegments across different regions.
2. The report helps stakeholders understand the pulse of the market and provides them with information on key drivers, restraints, challenges, and opportunities for market growth.
3. This report would help stakeholders understand their competitors better and gain more insights to improve their position in the business. The competitive landscape section includes product launches and developments and acquisitions
Table of Contents
Executive Summary
Companies Mentioned
- Advanced Micro Devices (Amd)
- Cypress Semiconductor Corporation
- Dialog Semiconductor
- Expressif Systems
- Gainspan
- Huawei Technologies Co. Ltd.
- Intel Corporation
- Marvell Technology Group Ltd.
- Mediatek Inc.
- Microchip Technology Inc.
- NXP Semiconductors N.V.
- Nordic Semiconductor
- Nvidia Corporation
- Qualcomm Incorporated
- Renesas Electronics Corporation
- Samsung Electronics
- Silicon Labs
- Stmicroelectronics N.V.
- TE Connectivity Ltd.
- Texas Instruments Incorporated
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 235 |
| Published | June 2020 |
| Forecast Period | 2020 - 2025 |
| Estimated Market Value ( USD | $ 392 billion |
| Forecasted Market Value ( USD | $ 525.4 billion |
| Compound Annual Growth Rate | 6.0% |
| Regions Covered | Global |
| No. of Companies Mentioned | 20 |
