Dublin, June 07, 2024 (GLOBE NEWSWIRE) -- The "Global IoT Chips Market Size, Share & Trends Analysis Report by Hardware (Processor, Sensor, Connectivity IC, Memory Device, Logic Device and Others), By Vertical, By Regional Outlook and Forecast, 2024 - 2031" report has been added to ResearchAndMarkets.com's offering.
The Global IoT Chips Market is expected to reach $1088.6 billion by 2031, rising at a market growth of 11.1% CAGR during the forecast period. The automotive segment is projected to acquire nearly 14% of the total market share by 2031.
The expansion of connected devices spans various industries and applications, including smart homes, smart cities, healthcare, manufacturing, agriculture, transportation, and retail. The rapid expansion of connected devices contributes to developing interconnected IoT ecosystems where devices, sensors, and platforms collaborate to gather and exchange data, automate processes, and enable intelligent decision-making. Therefore, the market is expanding significantly due to the rise in demand for connected devices.
Industry 4.0 fosters the adoption of smart manufacturing and automation technologies that leverage these chips to connect and control manufacturing equipment, robotics, and production systems. These chips embedded in sensors and connected devices enable continuous machine performance monitoring, detecting anomalies and deviations from normal operating conditions. Thus, because of the rapid expansion of Industry 4.0, the market is anticipated to increase significantly.
High deployment and maintenance costs can act as barriers to entry for SMEs looking to adopt IoT solutions. SMEs may lack the financial resources and expertise required to invest in costly IoT deployments, including hardware, software, integration, and ongoing maintenance. IoT solutions' total cost of ownership (TCO) encompasses deployment and maintenance costs and factors such as energy consumption, data storage, compliance, and scalability. Thus, high cost of deployment and maintenance can slow down the growth of the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, in April, 2024, Qualcomm Technologies unveiled new industrial and embedded AI platforms alongside a micro-power Wi-Fi SoC. The QCC730 Wi-Fi solution offers significant power savings for IoT products, while the RB3 Gen 2 Platform provides high-performance processing, on-device AI, and Wi-Fi 6E support for various applications like robots, drones, and connected cameras. The platform also integrates Qualcomm's AI Hub for optimized AI models.
Moreover, in April, 2024, Infineon Technologies AG has unveiled its new PSOC Edge E8x MCU product family, designed to meet the highest certification level provided by the Platform Security Architecture (PSA) Certified program. The PSOC Edge E8x devices achieve PSA Certified Level 4 device certification by implementing an on-chip, hardware-isolated enclave for secured boot, key storage, and crypto operations. This robust embedded security certification ensures that IoT designers can develop edge applications with the highest levels of security, benefiting industries such as wearables, smart homes, printers, and payment terminals.
Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the Cardinal matrix; Samsung Electronics Co., Ltd. is the forerunner in the Market. In June, 2021, Samsung Electronics unveiled a range of new chipsets, including the third-generation mmWave Radio Frequency Integrated Circuit (RFIC) chip, the second-generation 5G modem System-on-Chip (SoC), and the Digital Front End (DFE)-RFIC integrated chip. These chipsets, compliant with 3GPP Rel.16 standards, will power Samsung's next-generation 5G solutions, such as the 5G Compact Macro, Massive MIMO radios, and baseband units. Companies such as Qualcomm Incorporated, STMicroelectronics N.V., MediaTek, Inc. are some of the key innovators in Market.
By Hardware Analysis
On the basis of hardware, the market is segmented into processor, sensor, connectivity IC, memory device, logic device, and others. The sensor segment covered a 23% revenue share in the market in 2023.
By Vertical Analysis
By vertical, the market is bifurcated into automotive, BFSI, retail, healthcare, consumer electronics, industrial, and others. The retail segment acquired a 13% revenue share in the market in 2023. These chips enable deploying smart retail solutions that leverage connected devices, sensors, and data analytics to optimize various aspects of the retail environment. For example, according to Invest India, the retail industry will reach $2 Trillion by 2032. These solutions include smart shelves, RFID tags, inventory management systems, smart checkout counters, and personalized shopping experiences enabled by IoT-enabled devices like beacons and digital signage.
By Regional Analysis
Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the North America region led the market by generating 34% revenue share. The smart home in North America is growing rapidly, fueled by the increasing popularity of smart home devices and home automation systems. The manufacturing sector in North America is embracing IIoT technologies to improve operational efficiency, optimize supply chain management, and enable predictive maintenance.
List of Key Companies Profiled
- Samsung Electronics Co. Ltd. (Samsung Group)
- STMicroelectronics N.V.
- Analog Devices, Inc.
- NXP Semiconductors N.V.
- Qualcomm Incorporated (Qualcomm Technologies, Inc.)
- Intel Corporation
- MediaTek, Inc.
- Texas Instruments, Inc.
- Infineon Technologies AG
- Microchip Technology Incorporated
Market Competition and Attributes
The competition in the market is intense, driven by factors like technological advancements, demand for connected devices, and the need for energy-efficient solutions. Key players such as Intel, Qualcomm and MediaTek compete by innovating in areas like processing power, connectivity options, and AI capabilities to capture market share and meet diverse industry needs.
Recent Strategies Deployed in the Market
- Apr-2024: Microchip Technology extended its partnership with TSMC, a prominent semiconductor foundry, to enable specialized 40nm manufacturing capacity at Japan Advanced Semiconductor Manufacturing, Inc. (JASM), TSMC's majority-owned manufacturing subsidiary in Kumamoto Prefecture, Japan. This strategic move aligns with Microchip's efforts to enhance resiliency in its supply chain.
- Feb-2024: Samsung Electronics Co., Ltd. teamed up with Arm, a British semiconductor company, to deliver the next-gen Arm Cortex-X CPU optimized on Samsung Foundry's latest GAA process tech. This partnership aims to reinvent 2nm GAA for data centers and AI chiplet solutions, advancing mobile computing with cutting-edge performance and efficiency, driven by deep design-technology co-optimization.
- Feb-2024: NXP Semiconductors launched two new lines of low-cost and low-power microcontroller units (MCUs) as part of its MCX portfolio. The MCX A14x and A15x are the first MCU families in NXP's new A-class series, designed for intelligent edge applications in industrial IoT, smart homes, and smart cities.The MCX A14x operates at up to 48 MHz, while the MCX A15x operates at up to 96 MHz. They feature support for low-power peripheral sets, BLDC/PMSM motor control, and integrated sensor interfaces like MIPI-I3C, I2C, and SPI.
- Nov-2023: Infineon Technologies AG introduced the PSoC 4000T family of microcontrollers (MCUs), offering advanced low-power capacitive sensing solutions with exceptional signal-to-noise ratio, liquid tolerance, and multi-sense capabilities. This new MCU family expands the PSoC 4 product line with Arm Cortex-M0+ based MCUs, featuring Infineon's fifth generation CAPSENSE capacitive sensing technology.
- Apr-2023: Intel Foundry Services (IFS) and Arm, a British semiconductor company, announced collaboration on building low-power compute system-on-chips (SoCs) using Intel's advanced 18A process technology. This collaboration would target mobile SoC designs initially and would later expand into various sectors like automotive, Internet of Things (IoT), data centers, aerospace, and government applications. This collaboration aligned with Intel's IDM 2.0 strategy, focusing on expanding global manufacturing capacity to meet the increasing demand for chips and offering a more balanced supply chain for foundry customers.
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