IoT Chip Market to Reach US$ 188.63 Billion by 2031, Growing at 15.5% CAGR

IoT Chip Market Overview -

The global IoT Chip market is expanding at extraordinary speed as connectivity becomes embedded into everyday life and industrial infrastructure. Valued at US$ 69.73 billion in 2025, the market is expected to climb to US$ 188.63 billion by 2032, registering a CAGR of 15.5% during 2026-2032. This growth reflects the rapid scaling of smart devices, automation platforms, and digital ecosystems that depend on compact, efficient semiconductor solutions.

An IoT chip is an integrated electronic component that enables objects and machines to collect, process, and exchange data over wireless networks. Sometimes called radio or connectivity chips, these devices combine computing logic with communication circuits, allowing sensors and equipment to interact with cloud or edge systems. From home appliances to industrial robots, IoT chips serve as the intelligence backbone of modern networks.

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Why Purchase This Report?

This report delivers a comprehensive, evidence-based overview of the IoT Chip market to support informed strategic planning and investment decisions. It includes free customization options, such as country-level analysis for up to five selected countries and a detailed segment-wise competitive revenue assessment of leading players.

By offering deep insights into market trends, growth drivers, challenges, competitive dynamics, and emerging opportunities, the report equips manufacturers, investors, and decision-makers with actionable intelligence to identify high-growth segments, optimize operations, and maintain a sustainable competitive advantage.

Volume Growth and Market Economics -

Manufacturing volumes illustrate the magnitude of opportunity. In 2024, global shipments reached roughly 20.4 billion units, with an average selling price near US$ 3 per chip. Such scale highlights how IoT is transitioning from niche adoption to universal deployment.

Cost efficiency is critical. Producers must balance performance, energy consumption, and integration level while meeting aggressive price expectations. As volumes increase, economies of scale and process improvements are expected to enhance profitability even in competitive segments.

Consumer Demand Powering Expansion -

Smart homes and wearable electronics are major contributors to demand. Connected speakers, lighting systems, thermostats, and security devices rely on IoT chips for sensing, computing, and communication. Consumers value convenience, automation, and remote management, encouraging continuous product refresh cycles.

The integration of voice assistants and mobile ecosystems further strengthens adoption. Each new connected device adds nodes to the network, creating sustained chip requirements.

Industrial Transformation and Industry 4.0 -

Factories are rapidly deploying IoT platforms to improve productivity and reduce downtime. Sensors linked to intelligent chips monitor machine health, manage energy usage, and coordinate robotics. Real-time analytics enables predictive maintenance, helping companies avoid costly failures.

Industrial buyers often require higher durability and longer product lifecycles compared with consumer markets. This need drives innovation in reliability, security, and interoperability.

Smart Cities and Infrastructure Development -

Urban digitalization programs represent another significant driver. Applications such as intelligent traffic control, waste management, and environmental monitoring depend on vast numbers of connected nodes. IoT chips enable these systems to gather data continuously and respond dynamically.

Government investments in infrastructure modernization are creating large-scale procurement opportunities that can span many years.

Healthcare and Automotive Opportunities -

Medical technology is increasingly connected, with remote monitoring, wearable diagnostics, and telehealth services gaining popularity. IoT chips power portable devices that track patient data and transmit information securely to caregivers.

In transportation, vehicles are becoming sophisticated computing platforms. Functions like telematics, infotainment, and advanced driver assistance rely on constant communication between onboard systems and external networks.

Competitive Landscape-

The market includes leading semiconductor innovators with extensive design and manufacturing expertise. Key participants include Intel, Qualcomm, NXP Semiconductors, Texas Instruments, and STMicroelectronics. These companies compete on integration capability, power efficiency, software ecosystems, and long-term supply reliability.

Strategic partnerships with cloud providers and device manufacturers are essential to securing design wins.

Future Outlook -

Looking ahead, IoT chips will incorporate more processing power and embedded intelligence to support edge computing. Artificial intelligence accelerators will allow devices to analyze data locally, reducing latency and bandwidth requirements.

Security will remain a top priority, with hardware-based protection becoming standard. Sustainability considerations will also influence design, encouraging lower energy consumption and recyclable materials.

By 2032, IoT chips are expected to be present in nearly every sector of the economy. Their role as fundamental enablers of connectivity ensures strong and enduring demand, making this market one of the most influential areas within the semiconductor industry.

Key Benefits for Stakeholders -

✔ Enables executives, policymakers, product managers, and sales leaders to make informed strategic decisions

✔ Provides global, regional, and country-level revenue analysis to assess market share and identify new growth markets

✔ Offers detailed segmentation by type, application, technology, and end-use to support product and financial planning

✔ Helps investors evaluate market scope, risks, and expansion opportunities

✔ Supports competitive benchmarking through in-depth analysis of key players and their strategies

Key Questions Addressed in the Report -

✯ What is the overall market size and projected growth rate across global and regional segments?

✯ How does the market size and growth outlook vary across major countries?

✯ Which region or market sub-segment is anticipated to dominate growth during the forecast period?

✯ What are the primary factors expected to drive market expansion, and what challenges may restrain growth?

✯ Which emerging technologies and market trends are shaping the future landscape?

✯ What are the most significant opportunities available in the market?

✯ Who are the leading manufacturers actively participating in the global market?

✯ Which company currently holds the largest share of the market?

✯ What are the potential growth avenues for new entrants in the global market?

Benefits of purchasing QYResearch report:

Competitive Analysis:

QYResearch provides in-depth IoT Chip analysis, including information on key company profiles, new entrants, acquisitions, mergers, large market shear, opportunities, and challenges. These analyses provide clients with a comprehensive understanding of market conditions and competitive dynamics, enabling them to develop effective market strategies and maintain their competitive edge.

Industry Analysis:

QYResearch provides IoT Chip comprehensive industry data and trend analysis, including raw material analysis, market application analysis, product type analysis, market demand analysis, market supply analysis, downstream market analysis, and supply chain analysis and trend analysis. These analyses help clients understand the direction of industry development and make informed business decisions.

Market Size:

QYResearch provides IoT Chip market size analysis, including capacity, production, sales, production value, price, cost, and profit analysis. This data helps clients understand market size and development potential, and is an important reference for business development.

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Chapter Outline:

Chapter 1: Introduces the report scope of the report, executive summary of different market segments (by region, product type, application, etc), including the market size of each market segment, future development potential, and so on. It offers a high-level view of the current state of the market and its likely evolution in the short to mid-term, and long term.

Chapter 2: key insights, key emerging trends, etc.

Chapter 3: Manufacturers competitive analysis, detailed analysis of IoT Chip manufacturers competitive landscape, price, sales and revenue market share, latest development plan, merger, and acquisition information, etc.

Chapter 4: Provides profiles of key players, introducing the basic situation of the main companies in the market in detail, including product sales, revenue, price, gross margin, product introduction, recent development, etc.

Chapter 5 & 6: Sales, revenue of IoT Chip in regional level and country level. It provides a quantitative analysis of the market size and development potential of each region and its main countries and introduces the market development, future development prospects, market space, and market size of each country in the world.

Chapter 7: Provides the analysis of various market segments by Type, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different market segments.

Chapter 8: Provides the analysis of various market segments by Application, covering the market size and development potential of each market segment, to help readers find the blue ocean market in different downstream markets.

Chapter 9: Analysis of industrial chain, including the upstream and downstream of the industry.

Chapter 10: The main points and conclusions of the report.

About Us:

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