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The Internet of Things (IoT) Chip Market is estimated to grow at a CAGR of 12.7% between 2022 and 2027. The market size is forecasted to increase by USD 13,853.11 million. The growth of the market depends on several factors, including the increasing number of smart devices and applications, the increasing adoption of M2M connections, and governments and financial institutions investing in IoT ecosystem development.
This IoT chip market report extensively covers market segmentation by application (smart cities, industrial ethernet, smart wearables, connected vehicles, and connected homes), type (logic devices, sensors, processors, connectivity integrated circuits, and memory devices), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing number of smart devices and applications is notably driving the Internet of Things (IoT) Chip Market growth, although factors such as privacy and security concerns may impede market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing number of smart devices and applications is notably driving the Internet of Things (IoT) Chip Market growth. Smart devices are interactive gadgets that connect devices through protocols such as Wi-Fi, Bluetooth, 4G, and 3G. They include smartphones, smart wearables, smart home appliances, and smart automobiles. Smart devices offer advantages such as optimized decision-making, ease of handling emergencies, cost-cutting, remote control access, enhanced quality of living, time management, commercial benefits, and better safety and security.
The increasing automation of industrial processes, mechanization of the workforce, government-driven initiatives, and the rising demand for smart homes are expected to drive market growth during the forecast period. Many semiconductor vendors are manufacturing products for specific applications. Such innovations and new product launches increase the demand for smart devices and applications.
The introduction of NB-IoT technology is a key trend in the market. The use of this technology has increased the use of IoT-based chipsets. NB-IoT is a wireless technology that works on the LPWA network. It cannot be operated on LTE-based hardware. Various factors, such as the deployment of a wide area network, increased power efficiency, absence of a gateway for NB-IoT use, cost savings, reliability, and connection to a wide range of frequencies, fuel the adoption of NB-IoT in the market.
NB-IoT technology can enable devices with small form factors and sensors to ensure data transfer at higher rates. The use of NB-IoT allows mobile communication devices to reuse existing technologies. It also offers growth opportunities for emerging technologies in the market. The adoption of NB-IoT encourages end-users to use IoT technology in various sectors, such as agriculture and automotive. These factors will drive the use of chipsets and, in turn, support market growth during the forecast period.
Privacy and security concerns may impede Internet of Things Chip Market growth. The implementation of IoT can lead to major privacy and security concerns, as it allows users to access information stored in the cloud from anywhere and at any time. An IoT device has three layers, namely transport, network, and physical, any of which can be attacked. An attack on the physical layer involves accessing the device and extracting sensitive information. In the network layer, the routing part can be misconfigured to expose the data.
Some of the factors leading to security and privacy issues are the lack of a secure configuration, unsecured software updates, and the lack of privacy and security regulations. The configuration applied to network layers can enable attackers to extract information. Any misconfiguration can lead to the information being shared with an outsider. Software updates can also be used by hackers to attack devices and the IoT network. In addition, the lack of IoT-related regulations makes IoT devices vulnerable. These factors are hindering the adoption of IoT devices.
The Internet of Things Chip Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global IoT Chip Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Marvell Technology Inc. - The company offers an advanced suite of IoT application processors for home automation, industrial, and wearable applications. It also focuses on designing, developing, and selling integrated circuits
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the smart cities segment will be significant during the forecast period. A smart city is equipped with various information and communication technologies, including information systems, libraries, schools, power plants, transportation systems, water supply networks, and waste management systems.
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The smart cities segment was valued at USD 5,701.00 million in 2017 and continued to grow until 2021. The increase in the number of smart city projects in developing countries, advances in Wi-Fi technologies, and the extensive use of Wi-Fi and the Internet in industries and homes have positively impacted the growth of this segment. Companies such as IBM, Microsoft, Cisco Systems, and Schneider Electric are aiding the development of smart cities. The growing investments in smart cities will fuel the adoption of smart meters, smart grids, and smart parking solutions globally. These factors will drive the growth of the segment during the forecast period.
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APAC is estimated to contribute 46% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the Internet of Things Chip Market during the forecast period.
The presence of numerous consumer electronic device manufacturers and automotive OEMs is driving the growth of the market in APAC. Raw materials are available in abundance in the region, and the establishment and labor costs are low. In addition, several companies are focusing on increasing the number of manufacturing plants in APAC owing to the increasing demand for consumer electronics from the region. This encourages them to increase their production capacity. The launch of policies supporting IoT and Internet integration is also driving market growth in the region.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. Countries across the world deployed technologies to mitigate the effects of COVID-19. Technologies such as IoT are crucial, as they help track the spread of the virus, identify high-risk patients, and control the infection rate in real-time. The increase in commercial, residential, and public infrastructure is expected to drive the growth of the market in APAC during the forecast period.
The IoT chip market report forecasts market growth by revenue at global, regional, and country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the IoT chip market as a part of the global technology hardware, storage, and peripherals market within the overall global information technology market. The parent global technology hardware, storage, and peripherals market covers manufacturers of cellular phones, personal computers, servers, electronic computer components, and peripherals. It also includes data storage components, motherboards, audio and video cards, monitors, keyboards, printers, and other peripherals. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
IoT Chip Market Scope |
|
Report Coverage |
Details |
Page number |
189 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.7% |
Market growth 2023-2027 |
USD 13,853.11 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
12.0 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 46% |
Key countries |
US, China, South Korea, Japan, and Taiwan |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advanced Micro Devices Inc., Analog Devices Inc., Arduino Srl, Huawei Technologies Co. Ltd., Infineon Technologies AG, Intel Corp., Marvell Technology Inc., MediaTek Inc., Microchip Technology Inc., NVIDIA Corp., NXP Semiconductors NV, Park Ohio Holdings Corp., Qualcomm Inc., Renesas Electronics Corp., Samsung Electronics Co. Ltd., Silicon Laboratories Inc., SoftBank Group Corp., STMicroelectronics NV, Texas Instruments Inc., and Twilio Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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