For organizations targeting expansion, this report delivers actionable intelligence on how the iot semiconductor industry is evolving.
What Is The Projected Market Size & Growth Rate Of The IoT Semiconductor Market?
The iot semiconductor market size has grown rapidly in recent years. It will grow from $513.7 billion in 2024 to $589.7 billion in 2025 at a compound annual growth rate (CAGR) of 14.8%. The growth in the historic period can be attributed to increasing demand for IoT devices, rising demand for connected and smart devices, a surge in demand for smart home and smart city solutions, growing popularity of IoT in consumer applications, and rising disposable income.
The iot semiconductor market size is expected to see rapid growth in the next few years. It will grow to $1057.27 billion in 2029 at a compound annual growth rate (CAGR) of 15.7%. The growth in the forecast period can be attributed to the increasing need for energy-efficient semiconductor solutions, growing demand for low-power devices, widespread adoption of edge computing, rising deployment of edge devices requiring specialized semiconductor components, and the rise of interconnected devices. Major trends in the forecast period include the advancement of wireless communication technologies, the advancement of low-power semiconductors, the integration of IoT technology, technological advancements, artificial intelligence, and machine learning integration.
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What Is The Crucial Factor Driving The Global IoT Semiconductor Market?
The increasing demand for connected devices is expected to propel the growth of the IoT semiconductor market going forward. Connected devices refer to electronic devices that can communicate and exchange data with other devices or networks over the internet or local networks, typically enabling remote monitoring, control, and automation. The increasing demand for connected devices is due to advancements in technology, greater internet connectivity, and the growing need for automation, convenience, and real-time data access across various sectors. IoT semiconductors enable connected devices by providing the essential hardware components, such as sensors, processors, and communication modules, that facilitate seamless data exchange and connectivity between devices and networks. For instance, in June 2023, according to Auxano Global Services, a US-based non-governmental organization, the global number of connected wearable devices increased from 929 million in 2021 to over 1.1 billion in 2022. Therefore, the increasing demand for connected devices drives the IoT semiconductor market.
Segment Covered In The IoT Semiconductor Market Report
The iot semiconductor market covered in this report is segmented –
1) By Type: Internet Of Things Sensors, Internet Of Things Processors, Internet Of Things Chips, Other Types
2) By Product: Connectivity Integrated Circuits (ICs), Logic Devices, Memory Devices, Processors, Other Products
3) By End-User: Banking, Financial Services, And Insurance, Healthcare, Retail, Manufacturing, Information Technology And Telecommunications, Other End-Users
Subsegments:
1) By Internet of Things Sensors: Environmental Sensors, Motion and Position Sensors, Biometric Sensors, Optical Sensors
2) By Internet of Things Processors: Microcontrollers (MCUs), Digital Signal Processors (DSPs), Application Processors, Artificial Intelligence-Optimized Processors
3) By Internet of Things Chips: Wireless Communication Chips, Power Management Chips, Embedded Security Chips, Edge Artificial Intelligence Chips
Key Trends Driving Growth In The IoT Semiconductor Market
Major companies operating in the IoT semiconductor market are focusing on developing technologically advanced solutions such as cellular IoT chips to enhance connectivity, reduce power consumption, and support emerging IoT applications across industries. Cellular IoT chips are specialized semiconductor components that enable Internet of Things (IoT) devices to connect and communicate over cellular networks such as 4G or 5G. For instance, in March 2025, Sequans Communications S.A., a France-based electronics company, launched two new chips, Calliope 3 and Monarch 3. These chips integrate 5G eRedCap technology with LTE solutions, enhancing connectivity, power efficiency, and cost-effectiveness. Calliope 3 targets applications such as fleet management and wearables, while Monarch 3 focuses on ultra-low power IoT needs such as smart metering and healthcare.
Key Player In The IoT Semiconductor Market
Major companies operating in the iot semiconductor market are Samsung Electronics Co. Ltd., Sony Semiconductor Solutions Corporation, Taiwan Semiconductor Manufacturing Company Limited, Qualcomm Technologies Inc., Toshiba Electronic Devices And Storage Corporation, Infineon Technologies AG, NXP Semiconductors N.V, Analog Devices Inc., Renesas Electronics Corporation, Seiko Epson Corporation, ON Semiconductor Corporation, Skyworks Solutions Inc., Realtek Semiconductor Corporation, Nordic Semiconductor ASA, Semtech Corporation, Polar Semiconductor Inc., Ambiq Micro Inc., Kudelski Group, InnoPhase Inc., Open Automation Software LLC
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Global IoT Semiconductor Market - Regional Insights:
North America was the largest region in the iot semiconductor market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the iot semiconductor market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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