IoT Chips Market to Reach $ 1.7 Trillion, Globally, by 2032 at 14.3% CAGR

Allied Market Research published a report, titled, "IoT Chips Market by Hardware (Processor, Sensor, Connectivity IC, Memory Device, Logic Device, and Others) and Industry Vertical (Healthcare, Consumer Electronics, Industrial, Automotive, Banking Financial Services & Insurance, Retail, and Others): Global Opportunity Analysis and Industry Forecast, 2023-2032." According to the report, the global IOT chips market was valued at $432 billion in 2022, and is projected to reach $1.7 trillion by 2032, growing at a CAGR of 14.3% from 2023 to 2032.

The IOT chip market is expected to witness notable growth owing to the increased deployment of 5G. Moreover, the surge in demand for IOT chips in the healthcare and automotive industries is expected to provide lucrative opportunities for the growth of the market during the forecast period. On the contrary, rise in security concerns limits the growth of the IOT chip market.

On the basis of hardware, the processor segment held the highest market share in 2022, accounting for more than one-fourth of the global IOT chip market revenue and is estimated to maintain its leadership status throughout the forecast period, owing to the increase in demand for edge devices and surge in demand for consumer electronics and soaring popularity of smart homes which use different processor such as microcontroller, and microprocessor. However, the Sensor segment is projected to manifest the highest CAGR of 16.55% from 2023 to 2032.

On the basis of industry vertical, the industrial segment held the highest market share in 2022, accounting for more than one-fourth of the global IOT chip industry revenue and is estimated to maintain its leadership status throughout the forecast period. However, the consumer electronics segment is projected to manifest the highest CAGR of 16.55% from 2023 to 2032, owing to the emergence of several smart appliances that connect to the internet and smartphones.