IoT Chipset Market - By Hardware (Processors, Connectivity ICs, Sensors, Memory Devices, Logic Devices, Others), By Power Consumption (Less than 1 W, 1 - 3 W, 3 - 5 W, 5 - 10 W, more than 10 W), By End-use Industry, Forecast 2024 - 2032

IoT Chipset Market - By Hardware (Processors, Connectivity ICs, Sensors, Memory Devices, Logic Devices, Others), By Power Consumption (Less than 1 W, 1 - 3 W, 3 - 5 W, 5 - 10 W, more than 10 W), By End-use Industry, Forecast 2024 - 2032

IoT Chipset Market size is expected to depict over 6.4% CAGR from 2024 to 2032, due to the proliferation of IoT devices across various sectors, including healthcare, agriculture, and smart cities. Groundbreaking developments in semiconductor technology, like miniaturization and energy efficiency are enhancing the performance and capabilities of IoT chipsets. For instance, in June 2023, Qualcomm launched two chipsets, the 212S and the 9205S, facilitating data links via geostationary satellites for IoT. Both chipsets support the Qualcomm Aware cloud platform, enabling real-time asset tracking and device management in off-grid, remote areas.

The increasing investments in IoT infrastructure and connectivity solutions, coupled with the growing adoption of cloud computing and edge computing platforms are further accelerating the appeal of these chipsets. The integration of AI and machine learning algorithms into IoT chipsets is also enabling advanced data analytics and automation capabilities, driving the adoption of IoT technologies across diverse applications.

The IoT chipsets industry is bifurcated into hardware, power consumption, end-use industry, and region.

Based on hardware, the industry share from the processors segment is estimated to witness over 6% CAGR notable rate through 2032, driven by the surging demand for high-performance computing capabilities to process vast amounts of data generated by IoT devices. Significant advancements in semiconductor technology, including the development of powerful and energy-efficient processors are enhancing the processing capabilities of IoT chipsets. The increasing complexity of IoT applications and the rising need for real-time data processing is also spurring the product demand.

IoT chipsets market from the aerospace & defense end-use segment is estimated to rise at commendable rate from 2024 to 2032. This can be attributed to the increasing adoption of IoT technologies for enhancing aircraft performance, maintenance, and security. The ever-increasing demand for real-time data analytics, remote monitoring, and predictive maintenance are driving the integration of IoT chipsets in defense applications. Rapid advancements in sensor technologies and communication systems will also accelerate the product deployment in aerospace and defense sectors.

Regionally, the Europe IoT chipsets market is anticipated to experience robust growth at over 6.5% CAGR between 2024 and 2032, due to the increasing adoption of smart city initiatives, industrial automation, and connected healthcare solutions. The launch of supportive government policies is promoting IoT deployment, such as funding for R&D and initiatives to create IoT-friendly regulatory frameworks. The presence of leading semiconductor manufacturers and innovations in the sector are also driving the regional market expansion.