IoT Chips Market Report Scope & Overview:

The IoT Chips Market Size was valued at USD 466.8 billion in 2023 and is expected to reach USD 755.4 billion by 2031 and grow at a CAGR of 6.2% over the forecast period 2024-2031.

The Internet of Things (IoT) refers to electronic devices embedded with objects or machinery that communicate data wirelessly through networks. These devices, often equipped with radio chips, gather, transmit, or respond to data utilizing embedded processors, hardware, and sensors. They form a network of physical and virtual objects interconnected through cloud technology. IoT technology experiences significant demand across various industries such as electronics, automotive, thermostats, vending machines, speaker systems, and security systems due to its ability to enable real-time monitoring and facilitate easy access to information and communication. Familiar communication technologies like Wi-Fi, Bluetooth, ZigBee , 2G/3G/4G, and cellular technology are widely recognized, largely owing to the prevalence of smartphones, tablets, TVs, and other electronic appliances. However, newer technologies have emerged and integrated with IoT, such as Thread for home automation appliances and Whitespace TV technologies for broader coverage in major urban areas. For instance, in smartphones, IoT chips enable seamless communication with other devices and sensors across various technologies.

IoT Chips Market Revenue Analysis

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  • Low-cost smart wireless sensor networks are expanding.

  • An increasing proclivity to use AI and 5G technologies.

  • Increasingly prevalent application-specific MCUs and adaptable SoC configurations

In the forthcoming years, the shipment volumes of embedded processors designated for IoT applications are projected to surge at a faster pace compared to the broader embedded processing market. This anticipated growth is largely anticipated to stem from MCU-based devices, particularly 32-bit MCUs, which are gaining prominence due to their increasing adoption across automotive, industrial, and medical sectors necessitating advanced real-time sensors with heightened computational capabilities. Additionally, a notable trend observed is the rise of application-specific MCUs featuring integrated wireless functionalities. These specialized MCUs enable numerous home appliances and industrial devices to connect to the internet, posing a challenge to traditional general-purpose MCUs. Ideally suited for IoT applications, these devices necessitate a single chip with a compact form factor and minimal power consumption, catering to battery-operated devices. Such requirements have spurred the development of diverse SoC designs incorporating multiple embedded cores, embedded GPU, and integrated wireless connectivity within a single package.


  • Concerns surrounding the security and privacy of user data.

It remains significant in the context of IoT's extensive potential across various end-use applications, encompassing wearables, healthcare, and retail sectors. Despite its widespread adoption, the growth of the IoT market is hindered by these privacy and security challenges. The increasing number of connected devices, fueled by IoT's expansion in end-use applications, generates vast amounts of data, posing opportunities for cybercriminals to exploit vulnerabilities and engage in espionage activities. For instance, this data can potentially facilitate automatic acquisition of car insurance, assessment of individuals' health statuses, or tracking of a company's strategic behaviors. The IoT gateway, serving as a crucial connectivity layer between edge devices and cloud services, faces the task of managing a multitude of IoT devices and the data exchanged among them. While ensuring data confidentiality during protocol translation, the IoT gateway encounters challenges in maintaining data privacy, particularly due to the use of both private and public networks for IoT communication. Although encryption security keys offer a potential solution, their management remains a significant concern.


  • Government investment in innovation and research and development about IoT

The government sector is anticipated to emerge as one of the primary target markets for IoT, with governments globally endorsing and investing in research and development initiatives to enhance their productivity through IoT technologies. IoT has the potential to revolutionize various critical domains, including smart traffic management systems, energy efficiency via smart meters, and advancements in security systems facilitated by smart cameras. Many countries, such as Singapore, Finland, and Australia, are actively funding new IoT research endeavors aimed at fostering the creation of smart cities in the foreseeable future.


  • Excessive energy usage by interconnected devices

Enhanced power management and reduced optical power consumption stand out as critical prerequisites for any IoT device. Another significant challenge lies in managing the connectivity load, particularly when dealing with the simultaneous connection of hundreds or even thousands of devices. Take, for instance, an average smart home, which may comprise 50 to 100 interconnected appliances, lights, thermostats, and various other devices, each with its unique power demands. Smart meters are utilized to optimize line power efficiency. However, the primary obstacle arises from the necessity to manage the power consumption of devices utilizing wireless technologies like Wi-Fi, which tend to consume significant power. Manual replacement of batteries for numerous sensors, actuators, and other connected devices within IoT systems isn't practical, highlighting the importance of innovative solutions in battery technology and power management for portable and wearable electronics, despite ongoing efforts by semiconductor manufacturers to produce ultra-low power chips and modules.


Over the past couple of years, a surge in consumer electronics demand coupled with supply chain disruptions induced by the pandemic has led to an unprecedented supply shortage in the electronic chips market. This chip scarcity appears poised to intensify further due to the Russia-Ukraine conflict. Both nations involved in the conflict are major suppliers of crucial semiconductor raw materials - Russia contributing 44% of the world's palladium and Ukraine producing a substantial 70% of global neon supplies. With supply chains from these countries severely disrupted, industries heavily reliant on chips, such as the Internet of Things (IoT), are bracing for significant upheaval. The scarcity of chips is expected to result in decreased production output and elevated operational expenses for many IoT developers, leading to the emergence of scarcer and more costly products in the market. In the near term, this impact is likely to hinder innovation and impede growth in the burgeoning IoT market.


The impact of the ongoing economic slowdown on the IoT chips market is complex, affecting supply chains, demand, and industry dynamics. The semiconductor industry, crucial for IoT functionality, faces enduring challenges that jeopardize the availability and innovation of IoT devices. Despite improvements in chip production and supply, an imbalance persists, with companies holding surplus inventory due to prior long-term agreements and economic uncertainty impeding production in the first half of 2023. This situation is anticipated to prompt companies to dedicate much of the year to managing or offloading this surplus inventory. The demand for IoT components like microcontrollers, processors, and memory chips is expected to soar, driven by technological advancements in sectors such as electric vehicles (EVs), artificial intelligence (AI), and 5G. However, the construction of IT infrastructure to meet these demands faces unpredictability, potentially significantly impacting IoT adoption through 2025.

Regarding market dynamics, the IoT chips market is fueled by the increasing demand for connected devices across various sectors, including healthcare, automotive, and consumer electronics. This demand is propelled by the growing adoption of IoT solutions aimed at enhancing operational efficiency and improving user experiences. However, the high costs associated with deploying and maintaining IoT chips present a significant constraint, particularly for small and medium-sized enterprises, potentially restricting market growth. Conversely, the rapid expansion of Industry 4.0 and digital transformation strategies present significant opportunities for the IoT chips market. These initiatives, emphasizing the integration of digital technologies into industrial processes, heavily rely on IoT solutions, thereby driving demand for IoT chips.



  • Processors

  • Logic devices

  • Connectivity Integrated Circuits (ICs)

  • Sensors

  • Memory devices

  • Others

Categorized by hardware, the IoT chip market size is divided into processors, sensors, connectivity Integrated Circuits (ICs), memory devices, logic devices, and other components. The processor segment is experiencing growth primarily due to the rising demand for edge devices. Additionally, the increasing popularity of smart homes, which utilize various processors such as microcontrollers and microprocessors tailored to specific applications, is expected to drive the demand for processors further.

IoT Chips Market By Hardware

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  • Wearable Devices

  • Consumer Electronics

  • Retail

  • Healthcare

  • Manufacturing

  • Building Automation

  • Oil & Gas

  • Aerospace & Defense  

  • Automotive & Transportation

  • BFSI

  • Agriculture


The Asia Pacific IoT Chips market is projected to demonstrate and hold the largest share throughout the study period. The majority of IoT investments are directed towards the Asia-Pacific region, with South Korea and Singapore emerging as the largest markets for IoT chip adoption.

Europe's IoT Chips market holds the second-largest market share, attributed to the increasing demand for IoT chips and ICs in smart cities and home automation, particularly in sectors like connected vehicles and intelligent transportation systems. The infrastructure of IoT necessitates enhanced wireless connectivity solutions to facilitate advancements in automation and transportation. Moreover, the German IoT Chips market leads with the largest market share, while the UK IoT Chips market exhibits the highest growth rate in the European region.

In North America, the IoT Chips Market is anticipated to witness the fastest CAGR growth, fueled by the escalating adoption of connected devices across industries like manufacturing, thereby significantly contributing to IoT investments. The surge in IoT services and the increasing adoption of 5G technology further bolster market expansion prospects in the forthcoming years. Additionally, China holds the largest market share in the IoT Chips market, with India experiencing the fastest growth in the Asia-Pacific region.

IoT Chips Market By Region


North America

  • US

  • Canada

  • Mexico


  • Eastern Europe

    • Poland

    • Romania

    • Hungary

    • Turkey

    • Rest of Eastern Europe

  • Western Europe

    • Germany

    • France

    • UK

    • Italy

    • Spain

    • Netherlands

    • Switzerland

    • Austria

    • Rest of Western Europe

Asia Pacific

  • China

  • India

  • Japan

  • South Korea

  • Vietnam

  • Singapore

  • Australia

  • Rest of Asia Pacific

Middle East & Africa

  • Middle East

    • UAE

    • Egypt

    • Saudi Arabia

    • Qatar

    • Rest of the Middle East

  • Africa

    • Nigeria

    • South Africa

    • Rest of Africa

Latin America

  • Brazil

  • Argentina

  • Colombia

  • Rest of Latin America


The key players in the IoT Chips market are Intel Corporation, Qualcomm Incorporated, Mediatek, Samsung Electronics, Microchip Technology, Silicon Laboratories, Telit Communications, STMicroelectronics, Texas Instruments Incorporated, Nordic Semiconductor & Other Players.

Samsung Electronics-Company Financial Analysis

Company Landscape Analysis


In September 2022: Silicon Labs unveiled a range of products aimed at expanding its multiprotocol interoperability-focused and secure IoT portfolio, featuring support for Matter, Amazon Sidewalk, Wi-Sun, and Wifi 6 technologies.

IoT Chips Market Report Scope:

Report Attributes Details
Market Size in 2023 US$ 466.8 Billion
Market Size by 2031 US$ 755.4 Billion
CAGR CAGR of 6.2% From 2024 to 2031
Base Year 2023
Forecast Period 2024-2031
Historical Data 2020-2022
Report Scope & Coverage Market Size, Segments Analysis, Competitive  Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook
Key Segments • By Hardware (Processors, Logic Devices, Connectivity Integrated Circuits (ICs), Sensors, Memory Devices, Others)
• By End User (Wearable Devices, Consumer Electronics, Retail, Healthcare, Manufacturing, Building Automation, Oil & Gas, Aerospace & Defense, Automotive & Transportation, BFSI, Agriculture)
Regional Analysis/Coverage North America (US, Canada, Mexico), Europe (Eastern Europe [Poland, Romania, Hungary, Turkey, Rest of Eastern Europe] Western Europe] Germany, France, UK, Italy, Spain, Netherlands, Switzerland, Austria, Rest of Western Europe]), Asia Pacific (China, India, Japan, South Korea, Vietnam, Singapore, Australia, Rest of Asia Pacific), Middle East & Africa (Middle East [UAE, Egypt, Saudi Arabia, Qatar, Rest of Middle East], Africa [Nigeria, South Africa, Rest of Africa], Latin America (Brazil, Argentina, Colombia, Rest of Latin America)
Company Profiles Intel Corporation,Qualcomm Incorporated, Mediatek, Samsung Electronics, Microchip Technology, Silicon Laboratories, Telit Communications, STMicroelectronics, Texas Instruments Incorporated and Nordic Semiconductor, and other players
Key Drivers • Low-cost smart wireless sensor networks are expanding.
• An increasing proclivity to use AI and 5G technologies
RESTRAINTS Concerns surrounding the security and privacy of user data.

Frequently Asked Questions

The Asia-Pacific region with the Highest Revenue share in 2023.

The Asia-Pacific region with the Highest Revenue share in 2023.

 The expected CAGR of the global IoT Chips Market during the forecast period is 6.2%.

 The North America region is anticipated to record the Fastest Growing in the IoT Chips Market.

 The Processors segment is leading in the market revenue share in 2023.



1. Introduction

1.1 Market Definition

1.2 Scope

1.3 Research Assumptions


2. Industry Flowchart


3. Research Methodology


4. Market Dynamics

4.1 Drivers

4.2 Restraints

4.3 Opportunities

4.4 Challenges


5. Impact Analysis

5.1 Impact of Russia-Ukraine Crisis

5.2 Impact of Economic Slowdown on Major Countries

5.2.1 Introduction

5.2.2 United States

5.2.3 Canada

5.2.4 Germany

5.2.5 France

5.2.6 UK

5.2.7 China

5.2.8 Japan

5.2.9 South Korea

5.2.10 India


6. Value Chain Analysis


7. Porter’s 5 Forces Model


8.  Pest Analysis


9. IoT Chips Market, By Hardware

9.1 Introduction

9.2 Trend Analysis

9.3 Processors

9.4 Logic devices

9.5 Connectivity Integrated Circuits (ICs)

9.6 Sensors

9.7 Memory devices

9.8 Others

10. IoT Chips Market, By End-Use

10.1 Introduction

10.2 Trend Analysis

10.3 Wearable Devices

10.4 Consumer Electronics

10.5 Retail

10.6 Healthcare

10.7 Manufacturing

10.8 Building Automation

10.9 Oil & Gas

10.10 Aerospace & Defense 

10.11 Automotive & Transportation

10.12 BFSI

10.13 Agriculture


11. Regional Analysis

11. Regional Analysis

11.1 Introduction

11.2 North America

11.2.1 USA

11.2.2 Canada

11.2.3 Mexico

11.3 Europe

11.3.1 Eastern Europe Poland Romania Hungary Turkey Rest of Eastern Europe

11.3.2 Western Europe Germany France UK Italy Spain Netherlands Switzerland Austria Rest of Western Europe

11.4 Asia-Pacific

11.4.1 China

11.4.2 India

11.4.3 Japan

11.4.4 South Korea

11.4.5 Vietnam

11.4.6 Singapore

11.4.7 Australia

11.4.8 Rest of Asia Pacific

11.5 The Middle East & Africa

11.5.1 Middle East UAE Egypt Saudi Arabia Qatar Rest of the Middle East

11.5.2 Africa Nigeria South Africa Rest of Africa

11.6 Latin America

11.6.1 Brazil

11.6.2 Argentina

11.6.3 Colombia

11.6.4 Rest of Latin America


12. Company Profiles

12.1 Intel Corporation

12.1.1 Company Overview

12.1.2 Financial

12.1.3 Products/ Services Offered

12.1.4 SWOT Analysis

12.1.5 The SNS View

12.2 Qualcomm Incorporated

12.2.1 Company Overview

12.2.2 Financial

12.2.3 Products/ Services Offered

12.2.4 SWOT Analysis

12.2.5 The SNS View

12.3 Mediatek

12.3.1 Company Overview

12.3.2 Financial

12.3.3 Products/ Services Offered

12.3.4 SWOT Analysis

12.3.5 The SNS View

12.4 Samsung Electronics

12.4.1 Company Overview

12.4.2 Financial

12.4.3 Products/ Services Offered

12.4.4 SWOT Analysis

12.4.5 The SNS View

12.5 Microchip Technology

12.5.1 Company Overview

12.5.2 Financial

12.5.3 Products/ Services Offered

12.5.4 SWOT Analysis

12.5.5 The SNS View

12.6 Silicon Laboratories

12.6.1 Company Overview

12.6.2 Financial

12.6.3 Products/ Services Offered

12.6.4 SWOT Analysis

12.6.5 The SNS View

12.7 Telit Communications

12.7.1 Company Overview

12.7.2 Financial

12.7.3 Products/ Services Offered

12.7.4 SWOT Analysis

12.7.5 The SNS View

12.8 STMicroelectronics

12.8.1 Company Overview

12.8.2 Financial

12.8.3 Products/ Services Offered

12.8.4 SWOT Analysis

12.8.5 The SNS View

12.9 Texas Instruments Incorporated

12.9.1 Company Overview

12.9.2 Financial

12.9.3 Products/ Services Offered

12.9.4 SWOT Analysis

12.9.5 The SNS View

12.10 Nordic Semiconductor

12.10.1 Company Overview

12.10.2 Financial

12.10.3 Products/ Services Offered

12.10.4 SWOT Analysis

12.10.5 The SNS View

13. Competitive Landscape

13.1 Competitive Benchmarking

13.2 Market Share Analysis

13.3 Recent Developments

13.3.1 Industry News

13.3.2 Company News

13.3.3 Mergers & Acquisitions


14. Use Case and Best Practices


15. Conclusion

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Secondary Research

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Primary Research

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Data Bank Validation

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