IoT Chips Market Size, Share, and Growth Analysis, By Hardware (Processors, Connectivity Integrated Circuits (ICs)), By Power Consumption (Less than 1 W, 1-3 W), By End-use Application, By Region - Industry Forecast 2025-2032
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 global IoT chips market is experiencing significant growth driven by the rapid connectivity among devices in both consumer and industrial sectors. With the rise of smart homes, wearables, self-driving cars, and industrial IoT applications, there is a heightened demand for specialized chips that enhance connectivity, data processing, and power efficiency. This surge in connected devices prompts chip manufacturers to innovate and produce scalable hardware solutions. Key advancements in semiconductor technology, including smaller process geometries (5nm, 3nm), 3D chip stacking, and system-on-chip (SoC) integration, are enabling the design of faster, more energy-efficient, and compact chips tailored for IoT applications. These improvements lower manufacturing costs, elevate performance, and drive wider adoption of IoT, making intelligent devices more practical and accessible across various industries.
Top-down and bottom-up approaches were used to estimate and validate the size of the Global IoT Chips market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.
Global IoT Chips Market Segments Analysis
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.
Driver of the Global IoT Chips Market
A key driving force behind the global IoT chips market is the worldwide rollout of 5G networks. This next-generation technology facilitates faster and more reliable connectivity, enabling real-time data transmission and enhancing the functionality of IoT devices. As a result, there is a growing demand for IoT chips, especially in sectors such as automotive, smart cities, and healthcare, where rapid connectivity is essential for performance and efficiency. The expansion of 5G not only boosts existing applications but also fosters innovation, leading to new opportunities in the IoT landscape and significantly contributing to market growth.
Restraints in the Global IoT Chips Market
One significant challenge facing the Global IoT Chips market is the absence of standardized protocols for IoT devices and chips, which hinders interoperability across various platforms and industries. This complexity creates difficulties in ensuring seamless communication among different networks and devices, consequently impeding the implementation of IoT solutions. As a result, the overall development and deployment of IoT chips on a global scale may experience delays. Addressing this issue is vital to facilitate more cohesive integration and enhance the efficiency of IoT systems, ultimately supporting their growth and acceptance in diverse sectors around the world.
Market Trends of the Global IoT Chips Market
The global IoT chips market is experiencing a significant trend towards the integration of artificial intelligence (AI) capabilities directly into chipsets, empowering real-time decision-making at the edge. This shift enhances applications across various sectors, including smart surveillance, predictive maintenance, and autonomous driving, effectively reducing latency and reliance on cloud processing. As IoT devices become increasingly capable and autonomous, the demand for efficient, responsive processing power will continue to rise, thereby propelling market growth. The convergence of AI with IoT chip technology underscores a transformative evolution, positioning these advanced chipsets as critical enablers in the burgeoning landscape of connected devices.
Table of Contents
Introduction
Objectives of the Study
Scope of the Report
Definitions
Research Methodology
Information Procurement
Secondary & Primary Data Methods
Market Size Estimation
Market Assumptions & Limitations
Executive Summary
Global Market Outlook
Supply & Demand Trend Analysis
Segmental Opportunity Analysis
Market Dynamics & Outlook
Market Overview
Market Size
Market Dynamics
Drivers & Opportunities
Restraints & Challenges
Porters Analysis
Competitive rivalry
Threat of substitute
Bargaining power of buyers
Threat of new entrants
Bargaining power of suppliers
Key Market Insights
Key Success Factors
Degree of Competition
Top Investment Pockets
Market Ecosystem
Market Attractiveness Index, 2024
PESTEL Analysis
Macro-Economic Indicators
Value Chain Analysis
Pricing Analysis
Global IoT Chips Market Size by Hardware & CAGR (2025-2032)
Market Overview
Processors
Connectivity Integrated Circuits (ICs)
Sensors
Memory devices
Logic devices
Global IoT Chips Market Size by Power Consumption & CAGR (2025-2032)
Market Overview
Less than 1 W
1-3 W
3-5 W
5-10 W
More than 10 W
Global IoT Chips Market Size by End-use Application & CAGR (2025-2032)
Market Overview
Wearable Devices
Healthcare
Consumer Electronics
Automotive & Transportation
Building Automation
Manufacturing
Retail
BFSI
Oil & Gas
Agriculture
Aerospace & Defense
Global IoT Chips Market Size & CAGR (2025-2032)
North America (Hardware, Power Consumption, End-use Application)
US
Canada
Europe (Hardware, Power Consumption, End-use Application)
Germany
Spain
France
UK
Italy
Rest of Europe
Asia Pacific (Hardware, Power Consumption, End-use Application)
China
India
Japan
South Korea
Rest of Asia-Pacific
Latin America (Hardware, Power Consumption, End-use Application)
Brazil
Rest of Latin America
Middle East & Africa (Hardware, Power Consumption, End-use Application)