Global IoT Chip Market Size, Share, and Trends Analysis Report – Industry Overview and Forecast to 2032

IoT Chip Market Size

• The global IoT chip market was valued at USD 3.11 billion in 2024 and is expected to reach USD 7.38 billion by 2032
• During the forecast period of 2025 to 2032 the market is such as to grow at a CAGR of 11.40%, primarily driven by the increasing demand for connected devices and smart applications
• This growth is driven by factors such as the rapid adoption of IoT technologies across various industries, including healthcare, manufacturing, and smart homes

IoT Chip Market Analysis

• The IoT chip market is experiencing significant growth, driven by the increasing demand for connected devices across various industries such as healthcare, automotive, and smart homes. These chips are essential for enabling communication between devices, making them an integral part of IoT ecosystems
• The market is seeing advancements in chip technology, with companies focusing on developing smaller, more efficient, and energy-saving chips to meet the needs of an ever-growing network of devices. This is pushing manufacturers to adopt cutting-edge technologies to stay competitive
• Consumer electronics have become a major sector for IoT chips, with wearables and smart appliances leading the charge. For instance, the growing adoption of smart home products such as thermostats, security cameras, and voice assistants is increasing the demand for efficient IoT chips
• The automotive sector is another key area, with IoT chips playing a significant role in vehicle automation, telematics, and in-car connectivity. The rise of electric vehicles and autonomous driving technology is expected to further boost the market for IoT chips in this sector
• In recent years, the healthcare industry has also seen an increase in IoT chip usage, particularly in wearable devices and remote monitoring tools. The need for accurate data transmission and processing in real-time makes IoT chips crucial for medical advancements

Report Scope and IoT Chip Market Segmentation     

IoT Chip Market Trends

“Rapid Advancements in Technology and Product Innovation”

• As more devices become interconnected, the demand for smaller and more efficient chips is rising. Manufacturers are focusing on creating chips that consume less power while offering high performance, addressing the increasing need for energy-efficient solutions
• Artificial intelligence integration in IoT chips is growing, allowing devices to perform advanced tasks and make decisions autonomously.  
• For instance, in smart homes, IoT chips equipped with AI can manage energy consumption more effectively, enhancing the user experience 
• The focus on security in IoT chips is increasing as more sensitive data is being transmitted across networks. Companies are developing chips with enhanced security features to protect against cyber threats, ensuring safe data communication between devices
• The market is shifting toward system-on-chip solutions, where multiple components are integrated into a single chip to optimize space and performance. This trend is particularly important in industries such as healthcare, where compact and efficient devices are essential for real-time data monitoring
• The growing demand for connectivity and seamless communication between devices is driving the development of chips that support various communication protocols, ensuring compatibility with a wide range of IoT devices

IoT Chip Market Dynamics

Driver

“Increasing Demand for Smart Devices and Connected Ecosystems”

• The increasing demand for smart devices and connected ecosystems is driving the IoT chip market, with industries, businesses, and consumers embracing automation and digital transformation
• The rise of smart homes, wearable technology, industrial automation, and healthcare applications is pushing the need for IoT chips that enable seamless communication and data transmission between devices, ensuring operational efficiency
• The expansion of 5G technology is significantly contributing to this trend by offering higher bandwidth and faster connectivity, which is essential for the growth of smart devices and IoT applications
• In the automotive industry, IoT chips are critical for connected car technologies such as autonomous driving, telematics, and vehicle-to-everything communication, with leading manufacturers such as Tesla incorporating these innovations 
• In Instance, the healthcare sector is experiencing increased demand for IoT-enabled devices such as wearables and remote monitoring tools, with companies such as Apple and Fitbit utilizing advanced IoT chips for real-time health data processing and transmission

Opportunity

“Growth in Industrial IoT (IIoT) Applications”

• The growth of Industrial Internet of Things (IIoT) applications presents a major opportunity for the IoT chip market, as industries adopt digital technologies to enhance efficiency, safety, and cost reduction
• Sectors such as manufacturing, agriculture, logistics, and energy are increasingly adopting IoT solutions to optimize operations, with the need for real-time data monitoring, predictive maintenance, and automation driving demand for advanced IoT chips
• In manufacturing, IoT chips are used in sensors and machines that monitor equipment health, predict failures, and improve maintenance schedules, helping reduce downtime and operational costs
• The energy sector benefits from IoT chips through smart meters and grid management systems that optimize energy consumption and distribution, contributing to improved efficiency in energy networks
• Smart farming solutions powered by IoT chips are transforming agriculture by enabling precision farming techniques, improving crop yields, and reducing environmental impact, showcasing the significant potential for IIoT in diverse industries

Restraint/Challenge

“Security Concerns in IoT Networks”

• Security concerns in IoT networks are a significant challenge for the growth of the IoT chip market, with the increasing number of connected devices raising the risk of cyberattacks, data breaches, and unauthorized access to sensitive information
• IoT devices, especially in critical sectors such as healthcare, finance, and industrial operations, are vulnerable targets for cybercriminals due to weak encryption, insufficient authentication, and lack of regular software updates, which could lead to severe consequences such as data theft and system malfunctions
• IoT chip manufacturers are tasked with integrating robust security features, such as secure communication protocols, encryption, and real-time security updates, to protect devices and networks from cyber threats
• The vast scale of IoT device deployment and the complexity of managing security for millions of connected devices make it a difficult challenge to ensure consistent and effective protection across all devices
• The continuous evolution of cyber threats means chip manufacturers must remain proactive, upgrading security features regularly, which increases development costs and complexity, potentially hindering the widespread adoption of IoT devices and slowing the overall market growth if security concerns are not addressed effectively

IoT Chip Market Scope

The market is segmented on the basis application, product type, technology, magnification type, end user, and distribution channel.

IoT Chip Market Regional Analysis

“North America is the Dominant Region in the IoT Chip Market”

• North America is the dominant region in the IoT chip market, driven by strong demand from key sectors such as automotive, healthcare, and smart homes
• The region is home to some of the biggest players in the technology and semiconductor industries, such as Intel, Qualcomm, and Texas Instruments, contributing to innovation and technological advancements
• The increasing adoption of connected devices and smart technologies across industries, coupled with the expansion of 5G networks, has boosted the demand for IoT chips in North America
• In instance, the region's high level of investment in research and development and the presence of well-established infrastructure further solidifies its dominance in the global market by technological innovation, strong industry demand, and significant investments in smart technology and 5G expansion 
• For instance, the growth of smart home technologies and connected vehicles in the U.S. has heavily driven the demand for IoT chips

“Asia-Pacific is Projected to Register the Highest Growth Rate”

• The Asia-Pacific region is witnessing the fastest growth in the IoT chip market, fueled by rapid industrialization and a growing consumer electronics market
• Countries such as China, India, and Japan are at the forefront, investing in smart manufacturing, healthcare IoT, and the automotive sector, all of which rely heavily on IoT chip technology
• The region's booming e-commerce sector and increasing adoption of smart cities also contribute to the rise in IoT chip demand
• Additionally, the region benefits from a robust supply chain and cost-effective manufacturing capabilities, making it a prime location for the production and adoption of IoT chips 
• For instance, the rise in IoT-enabled devices such as wearables and home automation systems in China is significantly accelerating the demand for IoT chips across the region and is driven by industrialization, consumer electronics demand, and robust manufacturing capabilities

IoT Chip Market Share

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to market.

The Major Market Leaders Operating in the Market Are:

• Intel Corporation (U.S.)
• Qualcomm Technologies, Inc. (U.S.)
• Texas Instruments Incorporated (U.S.)
• NXP Semiconductors (Netherlands)
• Microchip Technology Inc. (U.S.)
• STMicroelectronics (Switzerland)
• MediaTek Inc. (Taiwan)
• Renesas Electronics Corporation (Japan)
• Huawei Technologies Co., Ltd. (China)
• NVIDIA Corporation (U.S.)
• Cypress Semiconductor Corporation (U.S.)
• Advanced Micro Devices, Inc. (U.S.)
• Samsung Electronics Co., Ltd. (South Korea)
• Silicon Laboratories (U.S.)
• Nordic Semiconductor ASA (Norway)

Latest Developments in Global IoT Chip Market

• In March 2025, India launched its first commercial high-performance IoT system-on-chip (SoC), estimated to cost 30 percent less than competing chips. This development aims to drive the growth of India's IoT sector by offering a cost-effective solution for IoT devices
• In October 2024, Qualcomm launched a new product portfolio for Industrial Internet of Things (IIoT) applications, featuring advanced chipsets and on-device AI capabilities. The Qualcomm IQ series is designed for industrial-grade use, powering applications such as robots, drones, and industrial automation with high compute, power efficiency, and safety-grade features
• In September 2024, Bharat Pi launched a cutting-edge IoT development board for Matter smart home applications, equipped with SEALSQ VaultIC292 secure element. The board integrates Matter protocol for seamless, secure connectivity across devices and offers advanced cryptographic protection, catering to the growing demand for smart home and industrial IoT solutions
• In April 2023, Qualcomm launched four new System on Chips (SoCs) as part of its expanded IoT portfolio, building on its Aware platform. These chips, including the QCS8550 and QCM8550, are designed for high-performance applications such as drones and cloud gaming. The new solutions integrate edge AI processing, power efficiency, and 5G connectivity to enhance the performance of IoT devices across industries such as industrial automation and enterprise solutions
• In December 2024, Qualcomm launched seven new chips designed for IoT devices in the retail sector. These chips, which range from entry-level to high-end models, incorporate AI and image processing technology to enhance the functionality of IoT devices, including cameras. They aim to improve performance in applications such as smart stores, interactive displays, and touchless payments, while also supporting advancements in warehousing and manufacturing sectors

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