IoT Chip Market To Generate $693.8 Billion Revenue by 2030

The IoT chip market size is expected to advance at a CAGR of 5.5% during 2021–2030, to reach $693.8 billion by 2030. This is ascribed to the rapid rise in the usage of IoT in the automotive and healthcare industries. Additionally, the growing adoption of the IPV6 internet protocol for identifying and locating other computers and devices on the internet is driving the growth of the market. The market is also expected to be driven by the surging internet usage and growth of smart wireless sensor networks.

APAC Offering Lucrative Growth Potential for IoT Chip Manufacturers

In the APAC region, internet usage has grown massively over the last couple of decades. Hence, various companies are collaborating and investing in the manufacturing of semiconductors in various countries of APAC. Driven by the expansion in internet connectivity, the demand for better wireless connectivity solutions to enable new phases in automation and transportation is surging, especially with the world’s focus strengthening on smart cities.

Governments also consider the integration of IoT rather important for their long-term development projects. The region is also expected to be a prominent provider of IoT chips, with the increasing use of connected devices in the manufacturing sector. Moreover, the planned launches of 5G and higher-generation telecommunication networks in the region will drive the demand for IoT chips.

Additionally, an exponential rise in the number of smart city projects in India, Japan, and China is propelling the market. In this regard, government initiatives are expected to strengthen cybersecurity, thus auguring well for IoT networks. Specifically, the Government of Japan introduced a new regulation in February 2020 to test IoT devices. The government has been compelled to do so by the increasing adoption of location tracking, facial recognition, remote working, cold-chain logistics, and video-centric applications.

Essentially, the building of smart infrastructures will create a massive requirement for a wider connectivity coverage via 5G and public Wi-Fi zones, as well as smart grids. In this regard, the initiatives for Industry 4.0 and special economic zones, apart from those related to smart cities, are driving IoT chip usage across the Asia-Pacific region.

Rising Requirement for IoT Chips for Security Applications Drives Market

IoT microchip-based are equipped with the encryption technology, so when a transaction takes place, the chip creates a unique one-time-use code, which is sent to the issuer for verification. The chip offers state-of-the-art security measures, such as a secure RAM, a hardware random number generator, and a cryptographic accelerator. Moreover, connected devices and a reliable software architecture are required to prevent hackers from infecting and cloning smart gadgets. Moreover, security measures, such as passwords, for accessing the software would be needed to protect devices from cyberattacks and the data from thefts.

The most-significant IoT chip market players are Qualcomm Incorporated, Intel Corporation, Texas Instruments Incorporated, NXP Semiconductors NV, Infineon Technologies AG, MediaTek Inc., Microchip Technology Inc., Samsung Electronics Co. Ltd., Silicon Laboratories Inc., and Nordic Semiconductor.