The IoT chipset market is expected to grow at a CAGR of 11.5% during the forecast period of 2024 to 2032, driven by the proliferation of connected devices, advancements in wireless communication technologies, and increasing adoption of IoT solutions across various industries. IoT chipsets play a critical role in enabling connectivity, processing data, and facilitating communication between IoT devices and networks. The market is characterized by a diverse range of hardware components, including processors, connectivity integrated circuits (ICs), sensors, memory devices, and logic devices, catering to the specific requirements of different IoT applications. However, challenges such as power consumption, interoperability, and security concerns pose restraints to market growth. Regional analysis highlights the dominance of North America in terms of revenue share and the potential for growth in the Asia Pacific region. Competitive trends indicate a competitive landscape dominated by key players, with a focus on product innovation and strategic partnerships to capitalize on emerging market opportunities. Overall, the IoT chipset market is expected to witness substantial growth during the forecast period, driven by technological advancements, increasing investments in IoT infrastructure, and growing demand for connected devices and smart solutions across industries.
Key Market Drivers
The proliferation of Connected Devices and IoT Applications
The proliferation of connected devices and IoT applications across industries is a major driver of the IoT chipset market. The growing adoption of smart homes, industrial automation, connected vehicles, and wearable devices is driving demand for IoT chipsets capable of providing seamless connectivity, processing power, and energy efficiency. The increasing integration of IoT technology into everyday objects and infrastructure is fueling market growth, with applications ranging from smart cities and healthcare to agriculture and manufacturing.
Advancements in Wireless Communication Technologies
Advancements in wireless communication technologies, including 5G, Wi-Fi 6, Bluetooth Low Energy (BLE), and Zigbee, are driving innovation in IoT chipsets. These technologies offer higher data transmission speeds, lower latency, and improved network coverage, enabling the deployment of more sophisticated and data-intensive IoT applications. IoT chipsets with support for multiple wireless protocols and standards are in high demand, enabling interoperability and seamless connectivity in heterogeneous IoT environments.
Increasing Demand for Edge Computing and AI-enabled IoT Devices
The increasing demand for edge computing and AI-enabled IoT devices is driving the adoption of advanced IoT chipsets capable of processing data locally and supporting real-time analytics and decision-making at the edge. Edge computing reduces latency, bandwidth requirements, and dependency on cloud services, making it ideal for applications that require low latency, data privacy, and offline operation. IoT chipsets with integrated AI accelerators and machine learning capabilities are enabling intelligent IoT devices capable of autonomous operation and predictive analytics.
Restraint
Despite the market drivers, the IoT chipset market faces challenges related to power consumption, interoperability, and security concerns. High power consumption is a significant constraint for IoT devices, particularly battery-powered and energy-constrained applications such as wearable devices, sensors, and IoT nodes. Optimizing power consumption without compromising performance is crucial for extending battery life and enhancing the reliability and usability of IoT devices. Interoperability issues arise from the diverse ecosystem of IoT devices, protocols, and platforms, requiring standardization efforts and interoperability testing to ensure seamless communication and integration. Security concerns, including data privacy, device authentication, and network vulnerabilities, pose risks to IoT deployments, necessitating robust security measures and encryption protocols to safeguard sensitive data and mitigate cyber threats.
Market Segmentation Analysis
Market by Hardware
The market segmentation by hardware includes processors, connectivity integrated circuits (ICs), sensors, memory devices, and logic devices. In 2023, processors accounted for the highest revenue share, driven by their role in data processing and computation in IoT devices. However, sensors are expected to witness the highest CAGR during the forecast period, fueled by the increasing demand for IoT devices with sensing capabilities for environmental monitoring, asset tracking, and predictive maintenance applications.
Market by Power Consumption
Segmentation by power consumption includes IoT chipsets with power ratings ranging from less than 1 W to more than 10 W. In 2023, IoT chipsets with power consumption between 1 W and 3 W accounted for the highest revenue share, driven by their widespread adoption of battery-powered IoT devices such as wearables, smart home devices, and industrial sensors. However, IoT chipsets with power consumption of less than 1 W are expected to witness the highest CAGR during the forecast period, attributed to the growing demand for energy-efficient IoT solutions and prolonged battery life.
Market by End-Use
Segmentation by end-use encompasses a wide range of industries, including wearable devices, healthcare, consumer electronics, automotive & transportation, building automation, manufacturing, retail, BFSI, oil & gas, agriculture, and aerospace & defense. In 2023, the automotive & transportation sector accounted for the highest revenue share, driven by the increasing adoption of connected vehicles, telematics, and in-vehicle infotainment systems. However, the healthcare sector is expected to witness the highest CAGR during the forecast period, attributed to the growing demand for remote patient monitoring, telemedicine, and IoT-enabled healthcare devices.
North America Remains the Global Leader
Geographic segmentation provides insights into regional trends, market dynamics, and growth opportunities across different geographical regions. In 2023, North America emerged as the largest market for IoT chipsets, driven by the presence of leading IoT chipset manufacturers, technological advancements, and early adoption of IoT solutions in various industries. However, Asia Pacific is expected to exhibit the highest CAGR during the forecast period, attributed to rapid urbanization, increasing investments in smart city projects, and the proliferation of connected devices and IoT applications in emerging economies such as China, India, and South Korea.
Market Competition to Intensify during the Forecast Period
The IoT chipset market is highly competitive, with key players such as Intel Corporation, Qualcomm Technologies, Inc., Texas Instruments Incorporated, Broadcom Inc., NXP Semiconductors N.V., Analog devises Inc., Cypress Semiconductor Corporation, Invensense Inc., Mediatek Inc., Microchip Technology Inc., Nordic Semiconductor ASA, Samsung Electronics Co. Ltd, Silicon Laboratories Inc., STMicroelectronics NV. dominating the market landscape. These companies employ various strategies such as product innovation, partnerships, mergers & acquisitions, and geographic expansion to gain a competitive edge and strengthen their market position. Revenue analysis for 2023 indicates Intel Corporation as the market leader, with a diverse portfolio of IoT chipsets catering to different applications and industries. However, with increasing competition and evolving customer requirements, market players are focusing on developing customized solutions, enhancing product performance, and addressing emerging market trends to sustain growth and profitability in the IoT chipset market.
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of IoT Chipset market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
| Segmentation | |
Hardware
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Power Consumption
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End-Use
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Region Segment (2022-2032; US$ Million)
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Key questions answered in this report
