Escalating Demand for IoT Chips in Security Applications Responsible for Global IoT Chip Market Growth

 

Currently, the Internet of Things (IoT) is observed revolutionizing chip making designs worldwide and simultaneously creating lucrative opportunities for chipmakers. A fundamental IoT chip comprises sensors, connectivity integrated circuits, micro-controlling units, and various categories of memories. It can be termed as a minute electronic device implanted on machines, objects, and a variety of consumer devices.

Furthermore, IoT chips are engineered for extensive durability to serve the purpose for a decade, to justify technology cost. In this era of continuous technological upgradation, IoT chips are embedded for diversified applications and behold the potential of maintaining communication among millions of internet-connected smart devices. These chipsets can function on Android, Microsoft Windows, as well as on Linux.

According to a market study by BIS Research, the global IoT chip market generated a revenue of $8.33 billion in 2018 and is expected to witness a CAGR of 15.18% during the forecast period, 2019 to 2029. The market growth can be attributed to the declining cost of IoT sensors, emerging requirement of IoT chips for security applications, and increasing demand for IoT chips in smart manufacturing applications.

The IoT chip market has witnessed numerous developments by both market leaders and startup companies with the motive of attaining their respective market shares in this emerging domain. A variety of business strategies, such as collaboration, partnership, joint venture, and regional expansion, were opted by market participants.

In order to lead the market, companies are expected to launch technically advanced products, collaborate with other market players, and focus on regional expansion to enhance the overall consumer base. Some of the key business strategies covered in the study includes partnership and collaboration, product launches, mergers and acquisitions, and others.

One of the major market trends influencing the global IoT chip market is the growing demand for IoT chips designed with advanced features that helps in utilizing the maximum capacity of IoT network is flourishing, worldwide, among others.

The functionality of the IoT chip includes both hardware and software parts. The hardware part acts as a functional base for IoT chips, and software is induced for enabling wireless connectivity of the chip. Hardware is considered as the foundational element of the Internet of Things (IoT) chip ecosystem and plays a significant role by performing functions such as signal detection, automation, and recording/sending/receiving the data with great precision and accuracy. Software can simply be defined as a set of instructions and data used to carry out a task. These are lines of codes that perform a specific task in an orderly manner. In IoT chip, the software is used to connect the hardware part with other connected devices.