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North America, by region, is expected to hold the largest share in the global IoT chip market during the forecast period

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North America, by region, is expected to hold the largest share in the global IoT chip market during the forecast period

June 22
15:08 2020

North America is a key market as it is home to some of the largest multinational corporations, such as Intel Corporation (US), Texas Instruments Incorporated (US), Dell (US), and Cisco Systems (US), in the IoT ecosystem. Increased R&D in the field of IoT, in terms of new and improved technologies, and the increasing demand for improved lifestyles are the two crucial factors driving the growth of the North American IoT chip market. Increasing R&D, at both the academic and industry levels, is broadening the application areas of IoT in different industries, such as consumer electronics, retail, automotive and transportation, and healthcare, especially in the US. This is the main factor driving the growth of IoT applications in North America.

 

The global IoT chip market size is expected to grow from USD 392.0 billion in 2020 to USD 525.4 billion by 2025, at a CAGR of 6.0%. The key drivers for the growth of the IoT chip market are the development of internet connectivity in technologically advancing countries and the growth of low-cost smart wireless sensor networks. The growth of application-specific MCUs and flexible SoC-type designs, adoption of IPv6, which provides more IP address space, technologies such as AI fueling IoT adoption are also expected to drive the IoT chip industry.

Concerns regarding the security and privacy of user data serves as a restraint to the growth of the IoT chip market. There are a lot of opportunities for the IoT chip industry, including cross-domain collaborations, government funding in innovation and R&D related to IoT, and emerging smart cities. A highly fragmented market due to the lack of common protocols and communication standards across platforms and high power consumption by connected devices are the challenges for the IoT chip market.

The IoT chip market, by hardware, has been segmented into processors, connectivity integrated circuits, sensors, memory devices, and logic devices. On the basis of end-use application, the market has been segmented into wearable devices, healthcare, consumer electronics, automotive & transportation, building automation, manufacturing, retail, BFSI, oil & gas, agriculture, and aerospace & defense. The market, by power consumption, has been segmented into devices that consume less than 1 W, 1–3 W, 3–5 W, 5–10 W, and more than 10 W. The market, by region, has been segmented into North America, Europe, APAC, and RoW.

https://www.marketsandmarkets.com/Market-Reports/iot-chip-market-236473142.html

The IoT chip market for the aerospace & defense end-use application is expected to record the highest CAGR during the forecast period. The growth of the IoT chip market in APAC can be attributed to the commercialization of the IoT application, which is estimated to be in its introductory stages in the developing economies of APAC. However, countries such as China, India, and Japan are aggressively implementing initiatives such as heavy investments in R&D to encourage the adoption of IoT in this region, which is expected to boost the demand for IoT chips in the future. North America is the largest market for IoT chips owing to the presence of major companies in the US, including Intel Corporation (US), Texas Instruments Incorporated (US), Dell (US), and Cisco Systems (US).

The IoT chip market is projected to grow at a significant rate in RoW during the forecast period. IoT is an ecosystem that comprises a number of sensors/edge devices and various connectivity technologies. In an IoT network, sensors/edge devices act as a node. These nodes use different protocols, such as Wi-Fi, Bluetooth, and ZigBee, to connect and are responsible for gathering various forms of data.

The processor market, by hardware, holds the largest size of the IoT chip market in terms of volume. Processors include several components, such as microcontrollers, digital signal processors (DSPs), and power management integrated circuits (PMICs). For IoT devices or systems to support real-time data monitoring and analytics, adequate processing hardware that consumes less power is required. The increasing demand for edge devices is the key factor supporting the growth of the processor segment. In addition, increasing demand for consumer electronics and the soaring popularity of smart homes, which use different processors, such as microcontrollers and microprocessors according to the application, are expected to further drive the demand for processors.

North America, by region, is expected to hold the largest share in the global IoT chip market in during the forecast period. Increasing use of the Internet and growing adoption of wireless sensors and networks across major end-use applications, such as healthcare, retail, consumer electronics, industrial, and automotive & transportation, have resulted in the growth of the IoT chip market in the region. An established IT ecosystem and early adoption of various IoT-enabled products across multiple end-use applications are the prominent factors supporting the growth of the North American market.

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