USD 455.7 billion
Report ID:
SQMIG45O2061 |
Region:
Global |
Published Date: May, 2025
Pages:
193
|Tables:
101
|Figures:
71
Global IoT Chips Market size was valued at USD 455.7 billion in 2023 and is poised to grow from USD 503.55 billion in 2024 to USD 1119.28 billion by 2032, growing at a CAGR of 10.5% during the forecast period (2025-2032).
The fast pace of connectivity among devices in consumer and industrial applications is a key growth driver for the global IoT chips market. With more smart homes, wearable tech, self-driving cars, and industrial IoT (IIoT) devices becoming mainstream, each device needs specialized chips to handle connectivity, data processing, and power efficiency. Such a growing network of connected devices needs increasingly reliable and scalable hardware solutions, and this is driving the chipmakers to innovate and produce on a large scale. Thus, the increasing quantity of intelligent endpoints provides an enormous demand for IoT chips, hence encouraging investments, R&D, and supply chain growth throughout the international semiconductor sector.
Developments like smaller process geometries (e.g., 5nm, 3nm), stacking of 3D chips, and integration of system-on-chip (SoC) designs allowed companies to design chips that are faster, energy-efficient, and smaller suited for IoT use cases. Semiconductor process technology advancements is the key trend driving the global IoT chips sector. These technological improvements reduce manufacturing costs while increasing chip performance and energy efficiency, which are vital for battery-operated and space-constrained IoT devices. As a result, improved chip capabilities foster greater adoption of IoT across industries by making intelligent devices more practical, affordable, and capable of real-time data processing.
How is the Rise of AI Adoption Accelerating the Growth of the IoT Chip Market?
Artificial Intelligence (AI) is impacting the global IoT chips market directly through a rise in demand for edge processing capabilities. Since AI-based IoT devices call for real-time decision-making with no dependence on cloud connectivity, chipmakers are creating AI-tuned processors incorporating machine learning features at the edge. This trend has prompted innovations like neural processing units (NPUs) to be installed into IoT chips. For example, Qualcomm's AI Engine in its IoT chipsets supports on-device learning for use cases such as predictive maintenance and intelligent surveillance. As AI adoption increases, it brings a cascading demand for more intelligent, higher-performance IoT chips, driving market growth.
In early 2024, Qualcomm announced the RB3 Gen 2 Platform and QCC730 SoC at Embedded World 2024, a major leap in AI-based IoT chip technology. The RB3 Gen 2 Platform provides a tenfold boost in on-device AI processing, enabling applications such as robotics and industrial automation. The QCC730 SoC introduces ultra-low-power Wi-Fi connectivity, using up to 88% less power than previous generations, ideal for battery-powered IoT devices.
Market snapshot - 2025-2032
Global Market Size
USD 455.7 billion
Largest Segment
Connectivity Integrated Circuits
Fastest Growth
Sensors
Growth Rate
10.5% CAGR
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Global IoT Chips Market is segmented by Hardware, Power Consumption, End-use Application and region. Based on Hardware, the market is segmented into Processors, Connectivity Integrated Circuits (ICs), Sensors, Memory devices and Logic devices. Based on Power Consumption, the market is segmented into Less than 1 W, 1–3 W, 3–5 W, 5–10 W and More than 10 W. Based on End-use Application, the market is segmented into Wearable Devices, Healthcare, Consumer Electronics, Automotive & Transportation, Building Automation, Manufacturing, Retail, BFSI, Oil & Gas, Agriculture and Aerospace & Defense. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
According to the global IoT chips market forecast, connectivity Integrated Circuits (ICs) are leading the innovation within the industry because they play a crucial role in facilitating unbroken communication between IoT devices. With a growing adoption rate of Wi-Fi, Bluetooth, Zigbee, and 5G in the smart home, healthcare, and industrial IoT space, these ICs provide solid and low-power connectivity. Their popularity is due to the explosion of connected devices, and efficient, small, and multi-functionality connectivity ICs have become necessary for scalable IoT deployments.
Sensors are expected to be the fastest-growing product in the world IoT chips market because of increased demand for real-time data acquisition in intelligent environments. With the growth of IoT applications in healthcare, agriculture, and smart cities, the demand for various, compact, and power-efficient sensors increases, which fuels quick adoption and technology innovations.
Consumer electronics is a leading end-use application in the global IoT chips market because of extensive use of smart devices such as wearables, smart TVs, and home automation systems. Advances in voice recognition, energy efficiency, and AI-based features are improving user experience and device functionality. With consumers seeking greater connectivity and personalization, IoT chips facilitate seamless integration, fueling their growing use and making consumer electronics the top application segment in this market.
Automotive & transportation will be the fastest-growing end-use application segment in the global IoT chips market owing to increasing demand for connected cars, ADAS, and smart fleet management. IoT chips facilitate real-time information exchange, predictive maintenance, and improved safety, leading to quick adoption into next-generation mobility solutions and smart transport systems.
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As per the global IoT chips market analysis, North America has a considerable market share due to the advanced technological infrastructure, high IoT penetration across industries, and strong establishment of major semiconductor players. The region is aided by early adoption of 5G, rising investment in smart home and industrial IoT solutions, and growing demand for AI-integrated devices. Government programs promoting digital transformation further drive regional development, making North America a leading innovation center for IoT chip production.
The United States dominates North America's IoT chips market, with its robust semiconductor industry, early adoption of 5G, and extensive use of IoT in industries such as healthcare, automotive, and smart cities. Powerful tech giants like Intel, Qualcomm, and NVIDIA lead ongoing innovation. Digital infrastructure initiatives supported by the government and developed consumer electronics also boost the demand for IoT chips, making the U.S. a world leader in technology.
Canada makes a remarkable contribution to the IoT chips market in North America through its expanding investments in industrial IoT, clean technology, and smart infrastructure. The nation places high priority on developing smart cities and intelligent transport systems, enhancing demand for innovative IoT chip solutions. Government policy support for innovation, an increased number of emerging tech startups, and extensive collaboration between universities and industries in conducting research create an effective ecosystem for IoT chip design and implementation in various industries.
Asia Pacific is the most rapidly expanding region in the world IoT chips market due to fast-paced urbanization, technology advancements, and rising use of IoT across segments such as automotive, healthcare, and manufacturing. Top markets in the form of China, Japan, South Korea, and India are at the forefront of semiconductor production, 5G rollouts, and smart cities initiatives. The expansive consumer electronic market in the region and rising demand for IoT-enabled devices are further fueling the growth of IoT chip technologies.
Japan is a leading player in the Asia Pacific IoT chips market with a significant emphasis on robotics, automotive, and industrial IoT. The technological and manufacturing capabilities of the country are conducive to IoT chip innovation, particularly in precision electronics and intelligent devices. Japanese firms such as Sony, Panasonic, and Toshiba are dominant players in IoT solution driving, with special interest in consumer electronics, healthcare, and automation industries.
South Korea plays a pivotal role in the Asia Pacific IoT chips market, leveraging its advanced semiconductor manufacturing capabilities, particularly through companies like Samsung and SK hynix. The nation's heavy focus on 5G rollout, smart cities, and connected cars propels IoT chip demand. The leadership of South Korea in consumer electronics, such as smart home appliances and wearables, also contributes to its global IoT ecosystem influence.
Europe is a prominent contributor to the global market for IoT chips, fueled by the strong adoption of industrial IoT, smart city advancement, and heightened demand for connected devices in healthcare, automotive, and manufacturing industries. The region has a strong technological base, innovation centers in Germany, the UK, and France, and EU programs for promoting digital transformation. Driven by the theme of sustainability, Europe is also investing in IoT solutions in energy-efficient and environmentally friendly domains.
Germany is a leader in Europe’s IoT chips market, driven by its strong manufacturing base, industrial automation, and automotive sectors. The national emphasis on Industry 4.0 and intelligent factories drives demand for IoT solutions in areas such as automotive and logistics. Leading German companies like Siemens and Bosch are major impetuses of IoT chip development, driving innovations on smart devices, predictive maintenance, and energy-efficient solutions across industrial and consumer applications.
The UK makes a significant contribution to Europe's IoT chips market via its emphasis on smart cities, healthcare, and manufacturing sectors. Top research institutes and technology startups drive innovation around IoT solutions, particularly in data processing, security, and connectivity. The influence of the government in promoting digital transformation and rolling out 5G also intensifies IoT take-up, raising the need for chips that control connected devices and smart systems for urban infrastructure as well as for healthcare.
France plays a key role in Europe’s IoT chips market, particularly in automotive, healthcare, and smart city applications. The nation's investment in connected mobility and green technologies propels demand for IoT chips, with industry leaders such as STMicroelectronics leading innovation. France's focus on IoT solutions for energy efficiency, environmental monitoring, and public security is at par with European Union digital transformation targets, triggering regional outlook growth.
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Increasing Adoption of 5G Connectivity
Rising Demand for Smart Devices
Complexity in Standardization
Limited Power Efficiency of Some IoT Chips
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The competitive landscape of the global IoT chips market outlook is marked by key players like Qualcomm, Intel, Broadcom, MediaTek, and NXP Semiconductors. These firms have an emphasis on innovation, strategic alliances, and acquisitions. For instance, Qualcomm highlights 5G and AI integration in IoT chips, while Intel invests in future semiconductor technologies. MediaTek targets affordable IoT solutions, and NXP targets automotive and industrial IoT segments, with a focus on improving connectivity and power efficiency in their offerings.
The startup ecosystem of the global IoT chips market is changing very fast, with many new startups trying to develop innovative, affordable, and niche-focused solutions. The focus of startups is on niche markets such as AI-enabled IoT chips, low-power connectivity solutions, and edge computing chips. Their push towards R&D and innovation is propelling the market ahead by providing differentiated capability applicable to certain industries such as automotive, healthcare, and smart cities.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global IoT chips industry is poised for sustained expansion, fueled by the rapid proliferation of connected devices and breakthroughs in semiconductor technology. When industries adopt smart systems in various sectors such as consumer electronics, healthcare, automotive, and industrial automation, the need for high-performance, low-power IoT chips increases.
AI processing and edge computing capabilities are also revolutionizing chip design, accelerating intelligent devices to become more efficient and self-governing. Regional economies like North America and Asia-Pacific are leading in terms of firm innovation ecosystems and solid infrastructure. Startups on their part are shaking up the market with vertical, power-friendly solutions. As 5G deployments, smart city programs, and R&D spending continue to grow, the IoT chips market will be positioned as a fulcrum for the future digital economy.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 455.7 billion |
Market size value in 2032 | USD 1119.28 billion |
Growth Rate | 10.5% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the IoT Chips Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the IoT Chips Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the IoT Chips Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the IoT Chips Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Global IoT Chips Market size was valued at USD 454.82 Billion in 2023 poised to grow from USD 497.12 Billion in 2024 to USD 1012.56 Billion by 2032, growing at a CAGR of 9.3% in the forecast period (2025-2032).
The competitive landscape of the global IoT chips market outlook is marked by key players like Qualcomm, Intel, Broadcom, MediaTek, and NXP Semiconductors. These firms have an emphasis on innovation, strategic alliances, and acquisitions. For instance, Qualcomm highlights 5G and AI integration in IoT chips, while Intel invests in future semiconductor technologies. MediaTek targets affordable IoT solutions, and NXP targets automotive and industrial IoT segments, with a focus on improving connectivity and power efficiency in their offerings. 'Qualcomm Inc. (USA)', 'Intel Corporation (USA)', 'Broadcom Inc. (USA)', 'Texas Instruments Incorporated (USA)', 'NXP Semiconductors N.V. (Netherlands)', 'STMicroelectronics (Switzerland)', 'MediaTek Inc. (Taiwan)', 'Samsung Electronics Co., Ltd. (South Korea)', 'Renesas Electronics Corporation (Japan)', 'Infineon Technologies AG (Germany)', 'Nordic Semiconductor ASA (Norway)', 'Analog Devices, Inc. (USA)', 'Microchip Technology Inc. (USA)', 'Silicon Laboratories Inc. (USA)', 'HiSilicon (Huawei Technologies Co., Ltd.) (China)'
The international expansion of 5G networks is one of the major market drivers for the IoT chips market. 5G allows for faster, more consistent connectivity, with real-time data transmission and increased IoT device functionality. This promotes the need for IoT chips, particularly in automotive, smart cities, and healthcare markets where fast connectivity is a must.
Integration of AI in IoT Chipsets: IoT chipmakers are increasingly integrating AI functionality directly into chips to make real-time decision-making at the edge possible. This transition enables applications such as smart surveillance, predictive maintenance, and autonomous driving, minimizing latency and cloud reliance while maximizing processing efficiency and responsiveness in numerous industry verticals.
How does 5G Deployment Support IoT Chip Growth in North America?
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