According to a market intelligence report by BIS Research titled "Global IoT Chip Market – Analysis and Forecast, 2019-2029," the global IoT chip market is projected to grow at a CAGR of 15.18% between 2019 and 2029, with the market growing to over $38.61 billion by then. The rising adoption rate of IoT-based devices and declining IoT sensor's cost are key factors propelling the overall market demand for IoT chips.
Substantial initial investments and the complication regarding the integration of IoT technology with already existing devices are some of the challenging aspects that need to be considered in the current scenario. Moreover, integration of artificial intelligence (AI) in IoT for decision-making applications is expected to create numerous market opportunities as massive amount of unorganized data generated from IoT devices is converted into useful information with the help of integration of AI algorithms.
Faisal Ahmad, Chief Analyst at BIS Research, said in a statement, "One of the impactful factors driving the overall market demand for IoT chips is the continuously surging global demand for connected devices. Moreover, integration of other digital technologies such as blockchain and artificial intelligence (AI) in various industry verticals such as manufacturing, healthcare, and automotive is expected to further increase the market growth during the forecast period. These advanced technologies rely on massive data obtained from IoT chips that are functioned to convert and process physical parameters into digital information. Furthermore, the demand for the IoT chip market is currently the highest in the Asia-Pacific due to the significant presence of tech-innovation hubs such as China and Taiwan."
Based on region, Asia-Pacific is expected to dominate the global IoT chip market by the end of 2019, followed by North America, and is anticipated to maintain its dominance in the forecast period as well. The region is continuously witnessing significant market demand due to the strong presence of developing economies such as India and China. These Asian countries are well-known for their positive outlook toward emerging technologies; moreover, the adoption of IoT devices has subsequently increased owing to the rapidly growing population in these countries. Technology hubs such as South Korea, Japan and Taiwan are expected to further drive the Asian market demand. China is estimated to lead the IoT chip market globally, with adoption of over 960 million connected devices by the end of 2019, according to Global System for Mobile Association (GSMA).