The Global IoT Chip Market was valued at USD 11,980. 8 million in 2020, and it is expected to reach a value of USD 27. 627. 9 million by 2026, registering a CAGR of 14. 98% over the forecast period, 2021 -2026.
New York, Nov. 03, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Global Internet of Things (IOT) Chip Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06129742/?utm_source=GNW
Due to both demand-side and supply-side factors, the growth in the number of IoT connections slowed down in specific sectors during the pandemic. Some IoT contracts were canceled or postponed due to firms going out of business or scaling back their spending. The demand for some IoT applications reduced during the pandemic. For instance, the demand for connected vehicles dropped due to reduced usage and deferred spending on new cars. The ACEA also reported that the demand for new cars in the European Union decreased by around 28.8% in the first three quarters of 2020.
- The rising demand for automation and the growing application of IoT devices across various end-user verticals, such as healthcare, consumer electronics, industrial, automotive, BFSI, and retail, are further driving the adoption of IoT devices.
- According to the Internet and Television Association’s Projections, by 2020, the number of IoT-connected devices was expected to reach 50.1 billion compared to 34.8 billion in 2018. The growth is primarily attributed to the integration of connectivity competence in a wide range of devices and applications, coupled with the development of different networking protocols that have appreciably driven the growth of the IoT chip market across multiple end-user industries.
- With the rapid increase in the number of IoT devices, the chip requirement for building these IoT devices is also expected to rise over the forecast period. Along with this, reducing energy consumption combined with the miniaturization of chips will be the priority of manufacturers.
- For instance, in June 2021, Impinj Inc. announced the introduction of three new RAIN RFID reader chips that enable IoT device manufacturers to meet the increasing demand for item connectivity in the retail, supply chain, and logistics applications consumer electronics, among other markets.
- Currently, NB-IoT, Cat-M1, and LTE command a significant share of 4G IoT traffic. The increased deployment of 5G provides quick and efficient connectivity for Internet-of-Things (IoT) devices. Thus, the booming IoT space and the supporting chip makers are expected to further increase the demand for IoT chips during the forecast period.
Key Market Trends
Industrial Segment is Expected to Witness Significant Growth
- With the evolution of IIoT, owing to 5G connectivity and advances in sensor technology, the number of IoT devices is expected to grow significantly by 2026. Industrial end-users are shifting from data-driven decision-making toward automated decision-making in real-time. Additionally, plant floor automation is increasingly adopting IIoT for data generation that has provisions for internal customer engagement. Further, organizations are leveraging IIoT to unlock pivotal insights into these traditionally black-boxed environments across increasingly connected factories and non-factory industrial settings.
- In addition, Apotex upgraded its manufacturing processes to automate manual processes. This includes ensuring consistent batch production by introducing RFID tracking, sorting, and process flow tracking. Due to this, the company had real-time visibility into manufacturing operations.
- Furthermore, the industrial IoT trend is aided through smart factory initiatives, such as the Smart Manufacturing Leadership Coalition (SMLC) in the United States. This drives and facilitates the broad adoption of manufacturing intelligence due to massive amounts of machine and sensor data that need collection, processing, and formation of decisions.
- The deployment of the wireless chip, including eLTE or NB-IoT chip for their manufacturing terminal, has been gaining traction over the years. For instance, Huawei collaborated with industrial partners to smartify the terminals used in traditional manufacturing for uploading equipment data and receive commands. eLTE or NB-IoT chip is added to the manufacturing terminal for transmitting data generated by the terminal via the eLTE or NB-IoT network, enabling manufacturing data to be collected and commands issued.
Asia Pacific is Expected to Witness Significant Growth
- Asia-Pacific accounts for a significant share of spending in IoT, with Singapore and South Korea major markets adopting IoT chips. According to the Organization for Economic Co-operation and Development, South Korea is the first prominent market to connect more to the internet per habitat.
- The advancements in IoT are creating demand for better wireless connectivity solutions. Further, supporting newer segments of automation and transportation, owing to the growing trend of smart cities and home automation in the region, such as connected cars and intelligent transportation systems, is expected to fuel the demand for connected ICs in the IoT chip market.
- Further, Asian governments are deeply integrating IoT in their long-term development projects. For instance, China’s central government selected over 200 cities to pilot smart city projects. The cities include Beijing, Shanghai, Guangzhou, and Hangzhou. Furthermore, India’s vision to transform 100 cities into smart cities is expected to promote electronics through smart homes and the automotive sector.
- The region is expected to be a prominent provider in IoT spending as there is increased use of connected devices in sectors such as manufacturing. Increased adoption of 5G is helping the market growth in the upcoming years as there is an increase in IoT services.
The Global Internet of Things (IOT) Chip Market is moderately competitive, with a considerable number of regional players. The companies are leveraging strategic collaborative initiatives, acquisitions to increase market share and profitability.
- July 2021 - Intel launched the newest generation of Intel Xeon W-3300 processors, available to its system integrator partners. Intel Xeon W-3300 processors offer uncompromised performance, expanded platform capabilities, and enterprise-grade security and reliability in a single-socket solution.
- June 2021 - Qualcomm introduced 7 new chipsets for IoT applications across various industries. The chips are equipped with features to support activities, such as integrated connectivity, sensor fusion, person identification and detection, object detection, edge detection, activity analysis, and personalization. Further, the chips are also designed to support warehouse management.
- May 2021 - Nordic Semiconductor announced the launch of the power management IC (PMIC). The nPM1100 combines a USB-compatible input regulator with overvoltage protection, a 400mA battery charger, and 150mA DC/DC step-down voltage regulator in a 2.075 x 2.075mm wafer level chip scale package.
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