AI is Transforming the IoT Chip Market, Expected Growth of USD 10.37 Billion from 2023 to 2027 Driven by Rising Smart Devices and Applications

The global iot chip market  size is estimated to grow by USD 10.37 billion from 2023-2027, according to Technavio. The market is estimated to grow at a CAGR of  13.59%  during the forecast period.  Increasing number of smart devices and applications is driving market growth, with a trend towards introduction of nb-iot technology. However, privacy and security concerns  poses a challenge.

The introduction of NB-IoT technology in the IoT chip market has significantly expanded the use of IoT-based chipsets. NB-IoT is a wireless technology that operates on the Low Power Wide Area (LPWA) network and is distinct from LTE-based hardware. This technology trend is expected to positively impact the IoT market. Factors such as the deployment of a wide area network, increased power efficiency, absence of a gateway for NB-IoT use, cost savings, reliability, and connection to a wide range of frequencies are driving the adoption of NB-IoT. NB-IoT allows devices with small form factors and sensors to connect to a licensed narrow bandwidth and transfer data at higher rates. For instance, LTE has a link budget of 142.7 dB, and GPRS has a link budget of 144 dB. An NB-IoT system has a link budget of 164 dB, providing a 20 dB margin for better battery life and data latency. NB-IoT also enables mobile communication devices to reuse older technologies and offers growth opportunities for emerging and newer technologies in the market. This technology has encouraged end-users to utilize IoT in various sectors, including agriculture and automotive, and will become a major driver for the global IoT chip market in the future.

The IoT chip market is surging with trends like encryption security keys for data protection, energy conservation through smart meters and HVAC controls, and security system improvements for connected homes and businesses. NXP Semiconductors, Intel Corporation, and Texas Instruments Incorporated lead the charge with energy-efficient chips for smart home appliances, inventory management, and supply chain management. Real-time advertising, analytics-based decisions, and digital signage rely on IoT devices' connectivity and networking protocols. Vulnerabilities in software and cyberattacks demand low-power security chips. Energy consumption and miniaturization of chips are crucial for automotive and healthcare applications. IoT connections require networking and supply chain shortages call for connectivity competence. IoT devices in consumer electronics, automotive, and healthcare industries need energy efficiency and security to thrive.