The IoT chip market was valued at USD 370.9 billion in 2019 and is projected to reach USD 525.4 billion by 2025; it is expected to grow at a CAGR of 6.0% from 2020 to 2025.
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, development of internet connectivity, and growth of low-cost smart wireless sensor networks are expected to drive the market growth.
However, concerns regarding the security and privacy of user data hamper the growth of the IoT chip market.
Consumer electronics end-use application is expected to hold the largest market share during the forecast period
The consumer electronics end-use application mainly comprises smart consumer appliances.
With the evolution of consumer appliances that can connect to the Internet and smartphones, the growth of IoT technology in the consumer electronics segment is expected to receive a boost.
Smart appliances, also known as intelligent appliances, have the ability to measure and control their energy usage and communicate it to homeowners and utility departments.
These appliances can be connected to smart energy meters or home energy management systems and can help reduce electricity usage during off-peak hours.
The growth of this segment is attributed to the increase in the market of smart home appliances such as smart TVs, smart speakers, smart washing machines, and smart refrigerators.
Aerospace & defence end-use application is projected to be the fastest-growing segment during the forecast period
The demand for IoT chip is expected to significantly increase in aerospace & defence as IoT technology will provide increased insights through sensors data, thereby helping the government increase the overall efficiency, safety, and control of flights.
This will lead to improved maintenance as performance data can be analyzed in real time, and ground crew and engineers can diagnose issues quickly and reduce downtime, thereby reducing cost.
IoT in the aerospace & defence segment provides connectivity and integration and equips the manufacturer with a wide-ranging view of their operations.
The aerospace & defence end-use application uses sensors to capture comprehensive machine data.
These sensors can be used on key equipment, machines, and vehicles. IoT offers numerous opportunities to airlines for the improvement of baggage handling and equipment monitoring.
Devices with 1-3 W power consumption held the major share in the overall IoT chip market in 2019
Few consumer electronic devices, industrial application devices, and healthcare application devices consume power in the range of 1-3 W.
Some major devices with 1-3 W power consumption include fitness & heart rate monitors, blood pressure monitors, blood glucose meters, continuous glucose monitors, pulse oximeters, automated external defibrillators, programmable syringe pumps, wearable injectors, and multi-parameter monitors.
Consumer electronic devices that majorly contribute to the 1-3 W power consumption segment include smart TVs, smart refrigerators, smart dryers, smart dishwashers, smart deep freezers, and other home automation devices.
APAC is expected to hold the second-largest share in the global IoT chip market in 2020
Growing penetration of the Internet across commercial as well as residential spaces, high consumer base, increasing disposable income, and improving IT infrastructure are some of the key determinants supplementing the growth of the IoT chip market in APAC.
Moreover, the adoption of cloud-based services and the rising trend of industrial automation are the key growth drivers of the IoT chip market for commercial applications in countries such as China, South Korea, and Japan.
The commercialization of the applications of the IoT is estimated to be in its introductory stages in the developing economies of APAC.
However, countries such as China, India, and Japan are aggressively taking initiatives, e.g., high 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.
For more information about this report visit www.researchandmarkets.com