IoT Chip Market In Retail Size, Share, Opportunities, COVID-19 Impact, And Trends By Connectivity (Cellular, Wi-Fi, Bluetooth, ZigBee, NFC, MQQT, Others), And By Geography - Forecasts From 2022 To 2027

Published:  Jul 2022 Report Code: KSI061613594 Pages: 90

The IoT chip market in retail was valued at US$2,202.872 million in 2020.

The global retail industry is undergoing a rapid transformation with the growing adoption of the Internet of Things (IoT). IoT has various applications across the retail sector as it helps boost sales, increase customer loyalty, offer a personalized experience, and improve inventory management.

The increasing proliferation of smartphones and connected devices coupled with the rising penetration of better and faster internet connectivity is one of the major drivers of the IoT chip market in retail.  According to the World Bank, the percentage of the population using the internet increased from 20.412% in 2007 to 49.723% in 2017. Simultaneously, the number of households with broadband access has increased significantly in both developed and developing economies. For instance, in China, the subscriptions to fixed broadband increased from 82,879,000 in 2008 to 407,382,000 in 2018. Similarly, in India, it reached 18,170,000 by 2018 from just 5,280,000 in 2008. As broadband internet becomes more widely available, manufacturers are producing an increasing number of devices with WiFi capabilities and built-in sensors. With the declining cost of this technology, the market for IoT chips in retail is growing significantly.

An increasing number of connected consumers are positively impacting the demand for IoT solutions across brick-and-mortar locations. As more and more customers are using their smartphones and connected devices to check in-store pricing and local inventory levels, retailers are increasingly opting for IoT solutions to stay ahead in this intense competition. Increasing investments in IoT technology for retail applications are further bolstering the market growth during the forecast period. In 2017, Intel launched its latest platform, called the Responsive Retail Platform (RRP), for the retail sector. The platform connects in-store technology, making it easier to develop and deploy the Internet of Things (IoT) by bringing together retail hardware, software, APIs, and sensors in a standardized way. In February 2019, the Posiflex Group introduced its full product portfolio of smart and connected retail solutions with fully-integrated hardware, middleware, and RMS (remote monitoring system). The rapid adoption of digital signage across the retail industry is another factor that is fuelling the market’s growth. Retailers are also using this technology to monitor inventory to avoid oversupply, shortages, or thefts in stores. Moreover, they are using IoT solutions to predict equipment failure or detect other issues to ensure food and beverage product safety.

With growing competition, retailers are increasingly focusing on customer loyalty while delivering the best in-store experience, further boosting the adoption of IoT across this sector, which, in turn, fuels the demand for IoT chips. The growing use of wearable devices by consumers is also attracting the retail sector to come up with innovative marketing strategies. For example, Walgreens is using wearables to encourage its customers to walk 10,000 steps per day by giving physical rewards in return as soon as a daily goal is reached. Thus, using wearables as a part of customer loyalty programs is further driving the market’s growth.

APAC to witness the highest CAGR during the forecast period

By geography, the IoT chip market in retail is segmented as follows: North America, South America, Europe, Middle East and Africa (MEA), and Asia Pacific (APAC). North America accounted for the major market share in 2019 and will remain in its position until the end of the forecast period. The early adoption of new technologies and the presence of global retail stores in countries like the U.S. and Canada are significantly propelling the market growth in this region. Starbucks, for example, has retrofitted some of its coffee machines with an external device called a ‘guardian module’ to securely aggregate data while proactively identifying problems with the machines. APAC, however, is projected to witness a substantial compound annual growth rate during the forecast period. The booming e-commerce industry is one of the major factors behind the growth of the market across the Asia Pacific region. As such, an increasing number of partnerships are being formed among e-commerce giants and IoT technology and solution providers, which will propel the growth of the IoT chip market in retail across this region. For example, in 2017, one of China’s leading online retailers,, partnered with hardware company Zebra to create the IoT+E-commerce Logistics Lab to work on applications of the Internet of Things (IoT) in online retail. In November 2019, the company launched the world’s largest home appliance experience centre- JD E-SPACE- in Western China. This is the world’s first digital offline retail space that is fully covered by 5G and is powered by JD’s Starlink IoT retail platform to provide a seamless interactive retail experience to its customers. In September 2018, Alibaba partnered with Japan-based semiconductor company, Renesas Electronics, to accelerate the growth of IoT in China while expanding its online sales channels on the mainland.

Recent Developments and expansions

  • Impinj Inc. announced the launch of three additional RAIN RFID reader chips in June 2021, allowing makers of Internet of Things (IoT) devices to address the rising demand for item connection in, among other areas, consumer electronics, supply chain, and retail.
  • Qualcomm Technologies unveiled a collection of CPUs and platforms in June 2021 for Internet of things devices in a variety of markets, including retail, logistics, transportation, and healthcare. A better link between IoT & digital transformation programs has been made possible by the addition of 5G to enterprise networking for businesses like Qualcomm.

COVID-19 Impact on the IoT Chip Market in Retail

COVID-19 had a conflicting effect on the retail IoT chips market. According to the Census Bureau reports, in April 2020, grocery shop sales climbed by 13.2 percent while the sales of clothes merchants fell by 89.3 percent year over year in the United States. According to Eurostat, sales of food, beverages, and tobacco climbed by 1.2 percent across the EU in April 2020, but sales of non-food items fell by 23.8% year over year. The results support divergent retail item patterns for necessities and non-necessities. Lockdowns and other social isolation measures also hurt brick-and-mortar merchants more than online ones, which may speed up the continuing transition from traditional to online retailing. Retailers were forced to quickly implement conveniences like buying online, picking up in-store (BOPIS), curbside collection, and delivery as the crisis took hold.  For instance, the UK's Office for National Statistics says that a record high of 30.7 percent of retail expenses was spent online in April 2020, up from 19.1 percent in April 2019. This is anticipated to have a positive effect on the demand for IoT chips in the retail sector.

IoT Chip Market in Retail Scope:

Report Metric Details
 Market size value in 2020  US$2,202.872 million
 Growth Rate  CAGR of during the forecast period
 Base year  2020
 Forecast period  2022–2027
 Forecast Unit (Value)  USD Million
 Segments covered  Connectivity, 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, Cypress Semiconductor Corporation, NXP Semiconductors, Silicon Laboratories Inc., Analog Devices, Inc., STMicroelectronics, Renesas Electronics Corporation, Nordic Semiconductor
 Customization scope  Free report customization with purchase



  • By Connectivity
    • Cellular
    • Wi-Fi
    • Bluetooth
    • ZigBee
    • NFC
    • MQQT
    • Others
  • By Geography
    • North America
      • USA
      • Canada
      • Mexico
    • South America
      • Brazil
      • Argentina
      • Others
    • Europe
      • Germany
      • France
      • United Kingdom
      • Spain
      • Others
    • Middle East and Africa
      • Saudi Arabia
      • Israel
      • Others
    • Asia Pacific
      • China
      • Japan
      • South Korea
      • India
      • Others
1. Introduction
1.1. Market Definition
1.2. Market Segmentation
2. Research Methodology
2.1. Research Data
2.2. Assumptions
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porters 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 in Retail Analysis, By Connectivity
5.1. Introduction
5.2. Cellular
5.3. Wi-Fi
5.4. Bluetooth
5.5. ZigBee
5.6. NFC
5.7. MQQT
5.8. Others
6. IoT Chip Market in Retail Analysis, By Geography
6.1. Introduction
6.2. North America
6.2.1. USA
6.2.2. Canada
6.2.3. Mexico
6.3. South America
6.3.1. Brazil
6.3.2. Argentina
6.3.3. Others
6.4. Europe
6.4.1. Germany
6.4.2. France
6.4.3. United Kingdom
6.4.4. Spain
6.4.5. Others
6.5. Middle East and Africa
6.5.1. Saudi Arabia
6.5.2. Israel
6.5.3. Others
6.6. Asia Pacific
6.6.1. China
6.6.2. Japan
6.6.3. South Korea
6.6.4. India
6.6.5. Others
7. Competitive Environment and Analysis
7.1. Major Players and Strategy Analysis
7.2. Emerging Players and Market Lucrativeness
7.3. Mergers, Acquisitions, Agreements, and Collaborations
7.4. Vendor Competitiveness Matrix
8. Company Profiles
8.1. Intel Corporation
8.2. Qualcomm Technologies, Inc.
8.3. Texas Instruments Incorporated
8.4. Cypress Semiconductor Corporation
8.5. NXP Semiconductors
8.6. Silicon Laboratories Inc.
8.7. Analog Devices, Inc. 
8.8. STMicroelectronics
8.9. Renesas Electronics Corporation
8.10. Nordic Semiconductor

Intel Corporation

Qualcomm Technologies, Inc.

Texas Instruments Incorporated

Cypress Semiconductor Corporation

NXP Semiconductors

Silicon Laboratories Inc.

Analog Devices, Inc.


Renesas Electronics Corporation

Nordic Semiconductor


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