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IoT Chipset Market - By Hardware (Processors, Connectivity ICs, Sensors, Memory Devices, Logic Devices, Others), By Power Consumption (Less than 1 W, 1 - 3 W, 3 - 5 W, 5 - 10 W, more than 10 W), By End-use Industry, Forecast 2024 - 2032

  • Report ID: GMI8727
  • Published Date: Mar 2024
  • Report Format: PDF

IoT Chipset Market Size

IoT Chipset Market size was valued at over USD 450 billion in 2023 and is estimated to register at a CAGR of over 6.4% between 2024 & 2032. An IoT chipset is a compact electronic component containing microprocessors, sensors, and communication modules. It enables connectivity and data processing for IoT devices, facilitating communication with other devices and the Internet. These chipsets are essential for powering the functionality of various IoT applications across industries.

IoT Chipset Market

The increasing demand for IoT solutions in logistics and supply chain management is driving the development of advanced IoT chipsets. These chipsets enable real-time tracking, monitoring & optimization of inventory, transportation, and warehousing operations. With an increasing focus on efficiency, transparency, and cost reduction in logistics operations, there is an increasing need for dependable and high-performance IoT chipsets to support the implementation of IoT solutions across the supply chain.

For instance, in June 2021, Qualcomm launched seven new IoT chipsets: Qualcomm QCS8250, Qualcomm QCS6490/QCM6490, Qualcomm QCS4290/QCM4290, and Qualcomm QCS2290/ QCM2290, to enable the proliferation of next-generation IoT devices. These latest IoT solutions from Qualcomm Technologies are purpose-built to help meet the needs of the expanding IoT ecosystem for key segments including transportation & logistics, warehousing, video collaboration, smart cameras, retail, healthcare, and more. The new IoT solutions also offer significant capabilities for a wide range of connected solutions and smart devices with extended life hardware & software options to achieve long-term support.

The growing demand for connected devices in smart homes is driving the IoT chipset market. These chipsets enable the communication and functionality of a variety of smart home devices including thermostats, security cameras, and lighting systems. As consumers seek greater convenience and energy efficiency in their homes, the demand for IoT chipsets grows.

Power consumption is a critical challenge in the market as many devices have limited battery life. High power consumption can limit the functionality and usability of IoT devices, particularly in remote or resource-constrained environments. Manufacturers are under pressure to develop chipsets with high energy efficiency to extend battery life and reduce the need for frequent recharging or battery replacement, thereby hampering market adoption.


IoT Chipset Market Trends

The increasing number of battery-powered IoT devices has resulted in a strong emphasis on low-power consumption and energy efficiency. There is an increasing demand for integrated connectivity solutions that support multiple wireless standards, enabling seamless communication between devices. Edge computing capabilities are becoming increasingly important as they enable real-time data processing and analysis at the network's edge, lowering latency and improving overall system efficiency.

For instance, in February 2024, Digi International launched Digi IX40, a 5G edge computing industrial IoT cellular router solution. Digi IX40 is purpose-built for Industry 4.0 use cases such as advanced robotics, predictive maintenance, asset monitoring, industrial automation, and smart manufacturing. Fully integrated with Digi Remote Manager, this solution’s capabilities improve security and scalability while ensuring speed, reliability & efficiency.

There is a growing emphasis on security features embedded in IoT chipsets to reduce cybersecurity risks and protect sensitive data. Furthermore, AI and machine learning algorithms are increasingly being integrated into IoT chipsets, enabling advanced analytics and predictive capabilities to be delivered directly to connected devices. The advancement of 5G technology is expected to drive the development of IoT chipsets capable of leveraging the high-speed, low-latency connectivity provided by 5G networks, opening new opportunities for IoT applications in a variety of industries.

IoT chipset Market Analysis

Global IoT Chipset Market, By End-use Industry, 2022-2032, (USD Billion)

Based on end-use industry, the market is segmented into aerospace & defense, automotive & transportation, BFSI, building automation, consumer electronics, healthcare, retail, manufacturing, oil & gas, and others. The consumer electronics segment accounted for a market share of over 17.5% in 2023.

  • The consumer electronics industry is experiencing significant growth in the market as demand for smart and connected devices rises. IoT chipsets enable devices to communicate, collect data & perform tasks autonomously, increasing consumer functionality and convenience. The proliferation of IoT-enabled gadgets, such as smart home appliances, wearable devices, and connected vehicles, has increased the demand for efficient and high-performance chipsets.
  • These chipsets enable seamless connectivity, data processing, and energy efficiency, resulting in widespread adoption across consumer electronics applications. Furthermore, advancements in semiconductor technology, such as the development of low-power and miniaturized chipsets, are also driving market growth. As consumers seek smarter & more interconnected devices to streamline daily tasks and improve quality of life, consumer electronics continues to be a key factor driving the market expansion.
Global IoT Chipset Market Share, By Hardware, 2023

Based on hardware, the IoT chipset Market is segmented into processors, connectivity ICs, sensors, memory devices, logic devices, and others. The connectivity IC segment is estimated to register a significant CAGR of over 7.2% during the forecast period.

  • Connectivity ICs play an important role in the IoT Things) chipset market. The segment is also growing rapidly due to a variety of factors, which include their ability to enable devices to communicate and exchange data wirelessly, thereby aiding seamless integration and interoperability within IoT ecosystems. The growing demand for IoT devices in a variety of industries including smart homes, healthcare, industrial automation, and smart cities is further propelling the market.
  • Connectivity ICs are essential components that enable wireless connectivity options such as Wi-Fi, Bluetooth, Zigbee, and cellular technologies, allowing devices to connect to networks & interact with one another. As the IoT landscape evolves, there is a growing demand for advanced connectivity solutions that can support a wide range of applications while maintaining robust connectivity, security, and low power consumption. This demand drives innovation and investment in connectivity ICs, resulting in the overall market development.
US IoT Chipset Market Size, 2021-2032, (USD Billion)

North America held a significant share of over 30% in the global IoT chipset market in 2023. North America's market is expanding rapidly due to a variety of factors. The increased adoption of IoT devices in industries such as healthcare, automotive, and smart cities is a key growth factor. The region's robust telecommunications and internet connectivity infrastructure, combined with advancements in semiconductor technology, are also driving this growth. Furthermore, the rising demand for connected devices and the emergence of 5G networks are opening up new opportunities for IoT chipset providers in North America, making it a growing and promising market for IoT technology.

IoT Chipset Market Share

Intel Corporation and Qualcomm Technologies Inc. holds a significant share of over 6.5% in the market. Intel Corporation is a prominent player in the IoT chipset landscape, offering a diverse portfolio of products tailored for various IoT applications. The company’s offerings include low-power processors, connectivity solutions, and edge computing platforms. Intel's focus on providing scalable, secure, and efficient solutions has positioned it as a key provider in the evolving IoT ecosystem.

Major players, such as Qualcomm Technologies Inc., Intel Corporation, Texas Instruments Incorporated, and NXP Semiconductors NV, are constantly implementing strategic measures, such as geographical expansion, acquisitions, mergers, collaborations, partnerships, and product or service launches, to gain market shares.

IoT Chipset Market Companies

Major players operating in the IoT chipset industry are:

  • Analog Devices Inc.
  • Cypress Semiconductor Corporation
  • Intel Corporation
  • Invensense Inc.
  • Mediatek Inc.
  • Microchip Technology Inc.
  • Nordic Semiconductor ASA
  • NXP Semiconductors NV
  • Qualcomm Technologies Inc.
  • Samsung Electronics Co. Ltd
  • Silicon Laboratories Inc.
  • STMicroelectronics NV
  • Texas Instruments Incorporated

IoT Chipset Industry News

  • In September 2022, Silicon Labs launched a series of products that extend its multiprotocol interoperability driven and secure loT portfolio with Matter, Amazon Sidewalk, Wi-Sun, and Wifi 6
  • In October 2021, STMicroelectronics and Sierra Wireless formed an alliance to simplify & accelerate the deployment of connected IoT solutions. The alliance leveraged Sierra Wireless's cellular technologies to be used in STMicroelectronics's MCUs.

The IoT chipset market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments:

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Market, By Hardware, 2018 - 2032

  • Processors
  • Connectivity ICs
  • Sensors
  • Memory Devices
  • Logic Devices
  • Others

Market, By Power Consumption, 2018 – 2032

  • Less than 1 W
  • 1 - 3 W
  • 3 - 5 W
  • 5 - 10 W
  • More than 10 W

Market, By End-use Industry, 2018 - 2032

  • Aerospace & Defense
  • Automotive & Transportation
  • BFSI
  • Building Automation
  • Consumer Electronics
  • Healthcare
  • Retail
  • Manufacturing
  • Oil & Gas
  • Others

The above information is provided for the following regions and countries:

  • North America
    • U.S.
    • Canada
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • ANZ
    • Rest of Asia Pacific 
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • MEA
    • UAE
    • Saudi Arabia
    • South Africa
    • Rest of MEA


Authors: Suraj Gujar, Sandeep Ugale

Frequently Asked Questions (FAQ) :

IoT chipset industry size exceeded USD 450 billion in 2023 and is estimated to surpass USD 750 billion by 2032, due to surging need to enable connectivity and data processing for IoT devices for facilitating communication with other devices and the Internet.

The consumer electronics end-use industry segment held over 17.5% of the IoT chipset market share in 2023, led by the strong demand for smart and connected devices.

IoT chipset industry size from the connectivity IC hardware segment is estimated to witness over 7.2% CAGR from 2024 to 2032, led by their ability to enable devices to communicate and exchange data wirelessly for aiding seamless integration and interoperability within IoT ecosystems.

North America held over 30% of the global IoT chipset industry share in 2023, due to increased adoption of IoT devices in industries, such as healthcare, automotive, and smart cities.

IoT Chipset Market Scope

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Premium Report Details

  • Base Year: 2023
  • Companies covered: 13
  • Tables & Figures: 309
  • Countries covered: 22
  • Pages: 220
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