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IoT Chip Market Size, Share, Growth & Industry Analysis, By Product (Processors, Connectivity Integrated Circuits (ICs), Sensors, Memory Devices, Logic Devices), By Connectivity (Wi-Fi, Bluetooth, RFID, Cellular Networks, RFID, Cellular Networks, Others), By End User (Healthcare, Consumer Electronics), and Regional Analysis, 2024-2031
Pages: 170 | Base Year: 2023 | Release: April 2025 | Author: Sunanda G.
The market encompasses semiconductor components specifically designed to support interconnected devices across various environments, including industrial automation, smart homes, healthcare, and automotive systems.
These chips integrate microcontrollers, sensors, connectivity modules and security features to enable data collection, real-time processing, and seamless communication.
Using advanced fabrication nodes, IoT chips are integral in building scalable ecosystems for applications such as predictive maintenance, asset tracking, remote diagnostics, and intelligent energy management. The report provides insights into the core drivers of market growth, supported by an in-depth evaluation of industry trends and regulatory frameworks.
The global IoT chip market size was valued at USD 548.57 billion in 2023 and is projected to grow from USD 605.95 billion in 2024 to USD 1436.86 billion by 2031, exhibiting a CAGR of 13.13% during the forecast period.
Market growth is driven by the growing integration of connected systems across sectors, enhancing operational visibility and automation. Additionally, the rapid expansion of smart consumer electronics ecosystems is increasing demand for compact, energy-efficient chips that support real-time data processing and connectivity.
Major companies operating in the IoT chip ndustry are Qualcomm Incorporated, NXP Semiconductors, Unisoc (Shanghai) Technologies Co., Espressif Systems, Semtech Corporation, Taiwan Semiconductor Manufacturing Company, Intel Corporation, MediaTek Inc., Texas Instruments Incorporated, STMicroelectronics N.V., Microchip Technology Inc., Analog Devices, Inc., Infineon Technologies AG, Broadcom, and Samsung.
Widespread deployment of connected systems in sectors such as manufacturing, agriculture, logistics, and utilities is increasing demand for highly integrated and energy-efficient chips. Enterprises are investing in industrial IoT infrastructure to enhance operational efficiency, automate processes, and improve supply chain visibility.
These requirements are accelerating the adoption of specialized microcontrollers and sensors tailored for industrial-grade performance, supporting market growth by expanding deployment opportunities across diverse verticals.
Market Driver
"Expansion of Smart Consumer Electronics Ecosystems"
The consumer electronics sector is experiencing a notable shift toward smart, interconnected products, including smart TVs, wearable devices, voice assistants, and home automation systems.
These devices rely on IoT chips to facilitate seamless communication and device interoperability, propelling the growth of the IoT chip market. Increasing consumer preference for convenience, automation, and personalization in daily tasks is prompting device manufacturers to integrate advanced chipsets into their product lines.
Market Challenge
"High Power Consumption and Thermal Management Issues"
A significant challenge hindering the growth of the IoT chip market is high power consumption and the resulting thermal management issues, particularly in compact, always-connected devices.
As IoT applications expand across consumer electronics, industrial systems, and smart infrastructure, ensuring energy efficiency without compromising performance is critical.
To address this challenge, companies are focusing on designing ultra-low-power chip architectures, incorporating advanced power management techniques, and leveraging smaller process nodes such as 5nm and 3nm.
Additionally, chipmakers are integrating AI-powered dynamic power control and investing in materials that offer improved heat dissipation to optimize device reliability and efficiency.
Market Trend
"Shift Toward Edge Computing and Real-Time Processing"
Growing need for real-time data analysis and decision-making in remote environments is advancing the role of edge computing. This trend is creating strong demand for embedded IoT chips that enable low-latency processing with minimal power consumption, propelling the development of the IoT chips market.
From smart factories to autonomous systems, edge-based architectures are replacing centralized models, highlighting the need for chips with integrated processing, storage, and connectivity features.
Segmentation |
Details |
By Product |
Processors, Connectivity Integrated Circuits (ICs), Sensors, Memory Devices, Logic Devices |
By Connectivity |
Wi-Fi, Bluetooth, RFID, Cellular Networks, Others |
By End User |
Healthcare, Consumer Electronics, Automotive, BFSI, Retail, Building Automation, Others |
By Region |
North America: U.S., Canada, Mexico |
Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe |
|
Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific |
|
Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa |
|
South America: Brazil, Argentina, Rest of South America |
Market Segmentation
Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
The North America IoT chip market share stood at around 33.24% in 2023, valued at USD 182.36 billion. Healthcare systems across North America are integrating IoT-enabled technologies to address challenges related to chronic care and remote monitoring.
Devices such as wearable ECG monitors, smart insulin pens, and telemetry systems use low-power chipsets with wireless communication modules to function effectively. The presence of major medical device manufacturers and supportive FDA policies for digital health solutions is accelerating product rollouts, fueling regional market growth.
Additionally, North America is home to major tech giants such as Amazon Web Services, Microsoft Azure, and Google Cloud, which are collaborating with semiconductor firms to optimize edge computing architectures.
For instance, NVIDIA’s Jetson Orin series and Qualcomm’s AI-enabled RB5 platform support IoT and edge-AI applications. The collaboration between cloud providers and chipmakers is fostering scalable and intelligent IoT ecosystems, supporting regional market expansion.
Asia Pacific IoT chip industry is estimated to grow at a robust CAGR of 14.18% over the forecast period. Asia Pacific is experiencing significant 5G infrastructure expansion, enabling large-scale IoT deployments.
Telecom operators and OEMs are embedding 5G-compatible chipsets into industrial routers, smart meters, and edge gateways to support ultra-reliable, low-latency communication.
This ongoing telecom transformation is strengthening the foundation for smart city projects and IoT applications, boosting doemstic market expansion.
Leading players operating in the IoT chip industry are increasingly focusing on the development of commercial high-performance System-on-Chip (SoC) solutions specifically tailored for Internet of Things (IoT) applications.
This strategic approach is enabling companies to address the evolving requirements of connected devices in terms of processing power, security, and energy efficiency. By prioritizing custom-built SoCs optimized for diverse IoT environments, these players are enhancing device functionality while maintaining cost efficiency.
Recent Developments (Agreements/Product Launch)