IoT Chip Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Connectivity (Cellular, Wi-Fi, Bluetooth, ZigBee, NFC, MQQT, Others), By End-User (Consumer Electronics, Healthcare, Automotive, Industrial, BFSI, Communications And Technology, Others), And By Geography - Forecasts From 2022 To 2027
- Published : Nov 2022
- Report Code : KSI061610578
- Pages : 132
The IoT chip market is projected to grow at a CAGR of 8.07% to reach US$209.709 billion by 2027, from US$121.845 billion in 2020.
An IoT chip is a small electronic device that is integrated into numerous electronic devices, machines, and objects. The objective of these chips is to connect the devices to wireless networks and receive or send data.
The growth of this market is majorly attributed to the growing demand for electronic devices.
Impressive economic growth, rising disposable income, and improvement in the standard of living are driving the demand for electronic devices, especially in developing economies such as China, India, and Brazil, among others. The miniaturization of electronic devices is leading to a more complex design that requires several functionalities to be deployed on a single chip, which is boosting the growth of the market. The demand for such designs is increasingly gaining traction in the market owing to their burgeoning use across industries such as consumer electronics, automotive, communication and technology, and healthcare among others. The growing penetration of the Internet of Things (IoT) in the automotive and other industries is one of the major drivers that are boosting market growth. Therefore, key players are partnering together to simplify the deployment of the Internet of Things (IoT) for industries. For example, in March 2019, AT&T and Vodafone announced a collaboration on IoT in everything related to connected vehicles for the North American, European, and African markets.
In addition, increasing household consumption expenditure also plays an important role in increasing the demand for consumer electronics, which further increases the IoT Chips. For instance, as per the World Bank, the household’s final consumption expenditure has grown remarkably from US$37.783 trillion in 2010 to US$48.611 trillion by 2018(Source: The World Bank Group). Moreover, companies are increasing their research and development expenditure to manufacture cost-effective wearable technology for the masses. Therefore, increasing research and development expenditure coupled with rising demand for wearable technology is augmenting the demand for these chips over the forecast period.
Rising penetration of IoT
The Internet of Things (IoT) is one of those technologies that is set to become ubiquitous in almost every industry. The affordability of sensor technology is playing an important role in the burgeoning adoption of IoT across industries. Its penetration in industries is leading to more complexity at the circuit level that requires the integration of a number of designs on a single chip, thus boosting the demand for IoT chips. As IoT chip applications are gaining traction in the market due to their use in a variety of applications including auto-pilot cars, electronic devices, and home automation, the demand for IoT chips is expected to grow in the next few years. In the automotive sector, IoT has gained adoption in several areas such as in-vehicle infotainment, predictive maintenance, security, surveillance, and safety, as well as cognitive insights for management, among others, leading to a significant increase in demand for more sophisticated electronic control units, thereby boosting the market.
Rising investments in 5G Technology
In the next few years, internet penetration is expected to grow along with rapid advancements in wireless technology. A significant surge in the number of internet users across the globe is further anticipated to drive investments by the major service providers in order to develop more fast and more advanced services to cater to the growing user needs. For instance, in 2010, there were only 28.753% of people across the globe were using the internet, and this number increased to 49.723% by 2017 (Source: The World Bank Group).
A rising trend is expected during the coming years, which will further snowball the demand for fast and high-speed internet. Budding investments for the deployment of 5G technology are further expected to drive the growth of the market during the forecast period and beyond. The incorporation of 5G technology is considered the next generation of mobile internet connectivity, which is expected to offer better speeds and more reliable connections than the current technology. Moreover, 5G is expected to operate on much higher frequencies, which is further anticipated to enable the adoption of new interface and component technologies, which may further positively impact the growth of the market.
The Automotive Segment is projected to show robust growth
On the basis of application, the global IoT chip market has been classified into consumer electronics, healthcare, automotive, industrial, BFSI, communications and technology, and others. The automotive segment is projected to show robust growth opportunities for the market to expand throughout the forecast period and beyond on account of significant growth in the adoption of connected and autonomous vehicles. Connected vehicles are considered to have the potential to transform the overall transportation network by creating safer road transport. In addition, connected vehicle technology will change that paradigm by giving people the tools to avoid crashes, so an increasing trend of their adoption is expected, which is further anticipated to positively impact the growth of the market during the coming years. Similarly, rapid development and innovation in the Advanced Driver Assistance Systems are also projected to augment the market growth on account of rising investments in Level 4 and Level 5 autonomous vehicles, wherein Level 4 no human interaction and in Level 5, human driving is completely eliminated, to make these systems safe, better connectivity technology is required for safe and reliable use.
- July 2021: As per the 29 July 2021 press release by Intel, they launched the latest generation of Intel Xeon W-3300 processors for its system integrator partners. In a single-socket solution, Intel Xeon W-3300 processors would deliver uncompromised performance, expanded platform capabilities, and enterprise-grade security and reliability. As compared to the previous generation, Intel Xeon W-3300 processors offer a new era in performance and efficiency
- June 2021: As per June 2021 press release by Qualcomm, A total of seven brand-new chipsets were introduced by Qualcomm for IoT applications across a wide range of industries. Chips are equipped with features such as integrated connectivity, sensor fusion, personal identification and detection, object detection, edge detection, activity analysis, and personalization. Additionally, the chips were designed to support warehouse management.
- March 2020: As per the march 2020 press release by Marvell Technology Group, they launched an ARM server processor ThunderX3 from Marvell Technology Group which features 96 cores and 384 threads. The company's server CPU products include the ThunderX line, where the ThunderX2 was the first ARM server silicon to be competitive against Intel and AMD.
Impact of COVID-19 on the IoT Chip Market
As a result of the spread of the virus, the IoT chips market experienced a significant decline in size in 2020. Supply chains in the industry were adversely affected by the pandemic. There were several verticals that used IoT chips, such as manufacturing, transportation, travel and hospitality, where operations were halted, but customers changed priorities. Additionally, the key players started focusing on generating operating revenues. The number of developments such as product launches and related developments in the IoT chips market in 2020 reduced. However, in many end-user verticals, such as healthcare, consumer electronics, industrial, automotive, BFSI, and retail, IoT devices are being adopted at an accelerated rate. 60% of firms have introduced their own smart connected products wherein IoT smart chips are helping them achieve a competitive advantage in the market as per July 2020 report by IoT Analytics.
IoT Chip Market Scope:
|Market Size Value in 2020||US$121.845 billion|
|Market Size Value in 2027||US$209.709 billion|
|Growth Rate||CAGR of 8.07% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments Covered||Connectivity, End-User, And Geography|
|Regions Covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies Covered||Intel Corporation, Qualcomm Technologies, Inc., Texas Instruments Incorporated, Infineon Technologies AG, NXP Semiconductors, Silicon Laboratories Inc., Analog Devices, Inc., STMicroelectronics, Renesas Electronics Corporation, Nordic Semiconductor|
|Customization Scope||Free report customization with purchase|
- By Connectivity
- By End-User
- Consumer Electronics
- Communications and Technology
- By Geography
- North America
- South America
- United Kingdom
- Middle East and Africa
- Saudi Arabia
- Asia Pacific
- South Korea
- North America
Frequently Asked Questions (FAQs)
1.1. Market Overview
1.2. COVID-19 Scenario
1.3. Market Definition
1.4. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter’s Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threat of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. IoT Chip Market Analysis, By Connectivity
6. IoT Chip Market Analysis, By End-User
6.2. Consumer Electronics
6.7. Communications and Technology
7. IoT Chip Market Analysis, By Geography
7.2. North America
7.3. South America
7.4.3. United Kingdom
7.5. Middle East and Africa
7.5.1. Saudi Arabia
7.6. Asia Pacific
7.6.3. South Korea
8. Competitive Environment and Analysis
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. Company Profiles
9.1. Intel Corporation
9.2. Qualcomm Technologies, Inc.
9.3. Texas Instruments Incorporated
9.4. Infineon Technologies AG
9.5. NXP Semiconductors
9.6. Silicon Laboratories Inc.
9.7. Analog Devices, Inc.
9.9. Renesas Electronics Corporation
9.10. Nordic Semiconductor
Qualcomm Technologies, Inc.
Texas Instruments Incorporated
Infineon Technologies AG
Analog Devices, Inc.
Renesas Electronics Corporation
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