Global Internet of Things (IoT) Chip Market Size Study & Forecast, by Hardware (Processor, Connectivity IC, Sensor, Memory Device, and Logic Device), by Power Consumption, by End-use Application (Wearable Devices, Consumer Electronics, Building Automation

The Global Internet of Things (IoT) Chip Market is valued at approximately USD 0.49 billion in 2024 and is expected to grow at a CAGR of around 6.0% over the forecast period 2025–2035. IoT chips represent the intelligent foundation of the connected ecosystem—microelectronic components designed to sense, process, and communicate data seamlessly between devices and cloud platforms. From smart thermostats and autonomous vehicles to predictive healthcare and connected retail shelves, IoT chips transform raw data into actionable intelligence. Their demand is surging as industries pursue digitization and automation to enhance efficiency, transparency, and customer engagement. The growing adoption of edge computing, artificial intelligence, and low-power wireless technologies further propels market expansion. As enterprises push for real-time decision-making, IoT chip architectures are evolving rapidly—offering higher integration, lower power consumption, and superior security to support billions of connected devices worldwide.

The global expansion of smart infrastructure and connected systems has triggered exponential demand for IoT chipsets, particularly in consumer electronics, industrial automation, and wearable technologies. According to industry analysts, the number of IoT-connected devices worldwide is projected to exceed 30 billion by 2030. This escalating network of devices relies heavily on power-efficient chips capable of delivering real-time data communication and processing in bandwidth-constrained environments. Moreover, as 5G networks proliferate and low-power wide-area networks (LPWANs) become standard, the role of IoT chips will become increasingly pivotal in bridging the gap between devices and intelligent networks. However, the industry also faces challenges including complex integration across heterogeneous systems, high design costs, and stringent data security requirements. Despite these hurdles, technological advancements in miniaturization, energy harvesting, and silicon optimization are likely to reshape the future of IoT connectivity during 2025–2035.

The detailed segments and sub-segments included in the report are:

By Hardware:
• Processor
• Connectivity IC
• Sensor
• Memory Device
• Logic Device

By Power Consumption:
• Low Power
• Medium Power
• High Power

By End-use Application:
• Wearable Devices
• Consumer Electronics
• Building Automation
• Retail

By Region:

North America
• U.S.
• Canada

Europe
• UK
• Germany
• France
• Spain
• Italy
• Rest of Europe

Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• Rest of Asia Pacific

Latin America
• Brazil
• Mexico

Middle East & Africa
• UAE
• Saudi Arabia
• South Africa
• Rest of Middle East & Africa

Processor Hardware Segment Expected to Dominate the Market

Among all hardware types, the processor segment is projected to dominate the global IoT chip market throughout the forecast period. Processors act as the central intelligence unit of IoT systems, managing device operations and data analytics across interconnected environments. The surge in demand for high-performance edge devices capable of real-time computation and AI-driven decision-making has accelerated the adoption of advanced multi-core processors and system-on-chip (SoC) architectures. Moreover, the emergence of ultra-low-power processors optimized for smart wearables and sensor nodes continues to redefine efficiency and scalability standards in connected systems. As IoT use cases diversify—from industrial robotics to home automation—the processor segment will maintain its leadership through continuous advancements in chip fabrication and integration technologies.

Consumer Electronics Lead in Revenue Contribution

Consumer electronics currently represent the leading end-use application segment, contributing the largest share of total IoT chip revenue. The proliferation of connected home devices, smart televisions, and wearable fitness trackers has fueled the widespread deployment of IoT-enabled chipsets. In addition, smartphone integration with IoT ecosystems—leveraging Bluetooth Low Energy (BLE), Zigbee, and Wi-Fi protocols—has elevated chip demand among OEMs seeking seamless connectivity solutions. Meanwhile, building automation and industrial IoT are gaining rapid traction, supported by escalating smart city projects and the convergence of operational technology with IT frameworks. While consumer electronics dominate revenue generation, industrial applications are anticipated to emerge as the fastest-growing vertical due to rising investments in predictive maintenance, real-time monitoring, and intelligent supply chains.

The key regions considered for the Global Internet of Things (IoT) Chip Market study include Asia Pacific, North America, Europe, Latin America, and the Middle East & Africa. North America currently dominates the market, underpinned by its advanced semiconductor ecosystem, strong presence of leading technology giants, and accelerated adoption of connected consumer and industrial devices. The U.S. continues to lead in IoT infrastructure development, supported by federal digital transformation initiatives and widespread 5G deployment. Europe is following closely, driven by stringent energy efficiency regulations and increasing smart infrastructure investments. Meanwhile, the Asia Pacific region is projected to record the fastest growth during 2025–2035, propelled by expanding industrial digitization, affordable electronic manufacturing, and large-scale IoT deployments across China, India, Japan, and South Korea. The region’s rapidly urbanizing economies and thriving consumer electronics sectors make it a pivotal growth engine for the global IoT chip landscape.

Major market players included in this report are:
• Intel Corporation
• Qualcomm Technologies, Inc.
• NXP Semiconductors N.V.
• Texas Instruments Incorporated
• Microchip Technology Inc.
• STMicroelectronics N.V.
• MediaTek Inc.
• Samsung Electronics Co., Ltd.
• Renesas Electronics Corporation
• Infineon Technologies AG
• Broadcom Inc.
• Analog Devices, Inc.
• Cypress Semiconductor Corporation
• Arm Holdings plc
• Silicon Laboratories Inc.

Global Internet of Things (IoT) Chip Market Report Scope:
• Historical Data – 2023, 2024
• Base Year for Estimation – 2024
• Forecast period – 2025–2035
• Report Coverage – Revenue forecast, Company Ranking, Competitive Landscape, Growth factors, and Trends
• Regional Scope – North America; Europe; Asia Pacific; Latin America; Middle East & Africa

The objective of the study is to define market sizes of different segments and countries in recent years and to forecast the values for the coming years. The report is designed to incorporate both qualitative and quantitative aspects of the industry within the countries involved in the study. The report also provides detailed information about crucial aspects such as driving factors and challenges, which will define the future growth of the market. Additionally, it incorporates potential opportunities in micro-markets for stakeholders to invest, along with a detailed analysis of the competitive landscape and product offerings of key players. The detailed segments and sub-segments of the market are explained below:

Key Takeaways:
• Market Estimates & Forecast for 10 years from 2025 to 2035.
• Annualized revenues and regional-level analysis for each market segment.
• Detailed analysis of the geographical landscape with country-level analysis of major regions.
• Competitive landscape with information on major players in the market.
• Analysis of key business strategies and recommendations on future market approach.
• Analysis of the competitive structure of the market.
• Demand side and supply side analysis of the market.

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