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IoT Chip Market to Witness 15.1% CAGR during 2017–2023

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Published Date:   March 2017

Valued $4,582.6 million in 2013, the global internet of things (IoT) chip market is expected to reach $17,285.3 million by 2023, advancing at a CAGR of 15.2% during the forecast period according to P&S Intelligence.

Industries across the world are rapidly adopting the IoT technology to increase work efficiency. The integration of wireless connectivity solutions in an array of application and devices, along with the development of various networking protocols, is driving the growth of the IoT chip market, globally.

The growing requirement for application-specific microcontroller units (MCUs) and flexible system on chip (SoC)-type architecture is the key factor propelling the growth of the IoT chip market.

Further, the growing demand for wearable connected devices is expected to aid in the progress of the IoT chip market. The major market players are making heavy investments in research and development (R&D), which is expected to boost the demand for IoT chips during the forecast period.

Besides, technological advancements in IoT are helping fulfil the need for enhanced wireless connectivity in new developments in the automotive and transportation sector, including connected cars and intelligent transportation systems (ITSs), which, in turn, is expected to increase the demand for connectivity ICs around the world.

Insights on the market segments

On the basis of application, the automotive and transportation sector dominated the IoT chip market during the historical period. During the forecast period, the market is expected to register the fastest growth in the retail category. Integration of IoT in retail offers advantages such as increased revenue and enhanced customer experience. In the retail sector, IoT-enabled devices are primarily used to manage mobile payments and inventory. Further, enhancements in these devices and the introduction of new technologies are expected to encourage the adoption of IoT solutions (in the chip form) in the retail sector.

Based on hardware, the IoT chip market is classified into sensors, processors, memory devices, connectivity integrated circuits (ICs), and logic devices. Of these, connectivity ICs held the largest market share during the historical period and memory devices are expected to grow with the highest CAGR during the forecast period. The demand for memory devices is projected to increase in the near future on account of the huge amount of data generation by IoT devices. Moreover, key industry players are investing heavily in R&D to introduce new IoT-based products, which is expected to raise the demand for IoT chips.

North America stood as the largest market for IoT chips in the historical period

Globally, North America led the IoT chip market during the historical period. Over the years, IoT developers and equipment manufacturers in the region have made huge investments in R&D to enhance the application area of the technology. Moreover, the rate of technological advancements, manufacturing operations, and infrastructure development in North America has been quite high. The rapid adoption of IoT technologies in numerous industries, such as automotive and transportation, retail, building automation, consumer electronics, and healthcare, is the key factor supporting the market growth in the region.

Growing need for application-specific MCUs and SOC designs is bolstering the market growth

The growth in the number of networking protocols and increasing requirement for application-specific MCUs and SoC-type architecture are the major factors driving the IoT chip market, globally. Even conventional microcontrollers that are general-purpose devices can execute an extensive variety of control tasks. In addition, conventional microcontrollers let a large number of IoT-integrated applications communicate with each other. But, in spite of their flexibility, there is still a vast array of applications that have specific requirements, which device manufacturers are able to cater to by developing application-specific MCUs.

IoT chips enable connectivity capabilities in a number of devices. IoT chipsets with integrated connectivity ICs, such as Bluetooth, near-field communication (NFC), and global navigation satellite system (GNSS), are predicted to find application in smartphones and other consumer electronics to reinforce varied communication protocols.

Access Report Overview: https://www.psmarketresearch.com/market-analysis/iot-chip-market

IoT chip market is consolidated in nature

The global IoT chip market was characterized by a consolidated structure in 2016. Among the key players operating in the market are Qualcomm Incorporated, Texas Instruments Incorporated, Intel Corporation, Microchip Technology Inc., MediaTek Inc., NXP Semiconductors N.V., Renesas Electronics Corporation, Huawei Technologies Co. Ltd., STMicroelectronics N.V., Cypress Semiconductor Corporation, Advanced Micro Devices Inc., NVIDIA Corporation, and Samsung Electronics Co. Ltd.

GLOBAL IoT CHIP MARKET SEGMENTATION

By Hardware

  • Processor
    • Microcontroller Unit (MCU)
    •  Application Processor (AP)
    • Digital Signal Processor (DSP)
  • Sensor
    • Accelerometer
    • Inertial Measurement Unit (IMU)
    • Heart Rate Sensor
    • Pressure Sensor
    • Temperature Sensor
    • Blood Glucose Sensor
    • Blood Oxygen Sensor
    • Electrocardiogram (ECG) Sensor
    • Humidity Sensor
    • Image Sensor
    • Ambient Light Sensor
    • Flow Sensor
    • Level Sensor
    • Chemical and Gas Sensor
    • Motion and Position Sensor
  • Connectivity IC
    • ANT+
    • Bluetooth
    • Bluetooth Smart/Bluetooth Low Energy (BLE)
    • ZigBee
    • Wireless Fidelity (Wi-Fi)
    • Ethernet
    • Near-Field Communication (NFC)
    • Enocean
    • Cellular Network
    • Wireless Highway Addressable Remote Transducer (WHART)
    • Global Navigation Satellite System (GNSS) Module
    • Thread
    • Z-Wave
    • ISA100
  • Memory Device
    • Static Random-Access Memory (SRAM)
    • Dynamic Random-Access Memory (DRAM)
  • Logic Device
    • Field-Programmable Gate Array (FPGA)

By Application

  • Wearable Devices
  • Healthcare
  • Consumer Electronics
  • Building Automation
  • Industrial
  • Automotive and Transportation
  • Banking, Financial Services, and Insurance
  • Agriculture
  • Retail
  • Oil and Gas
  • Others

By Geography

  • North America
    • U.S.
    • Canada
  • Asia-Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of APAC
  • Europe
    • U.K.
    • Germany
    • France
    • Rest of Europe
  • Rest of the World (RoW)
    • Mexico
    • Brazil
    • South Africa
    • Rest of RoW