An IoT chipset is a collection of integrated circuits specifically designed to enable connectivity, processing, and data transmission in Internet of Things (IoT) devices. These chipsets typically include components such as microcontrollers, processors, memory, and connectivity modules (like Wi-Fi, Bluetooth, or cellular). They serve as the core of IoT devices, allowing them to collect data from sensors, process information, and communicate with other devices or networks. With increasing demands for real-time data, energy efficiency, and compact design, modern IoT chipsets are also incorporating advanced technologies such as edge computing, artificial intelligence (AI), and machine learning (ML).

The market is driven by rising demand for connected devices, rapid urbanization, and the need for efficient, cost-effective solutions. Growth in smart homes, cities, and industries is boosting demand for IoT-enabled devices requiring advanced processing, memory, and connectivity. Real-time data analysis is fueling adoption of IoT chips with AI, machine learning, and edge computing capabilities. Increasing use of smart home devices, wearables, and industrial IoT applications calls for versatile, energy-efficient chips. Industry sectors like automation, healthcare, transportation, and consumer electronics also propel market growth through automation and remote monitoring needs. Semiconductor companies are developing AI-focused architectures to meet these demands. To stay competitive, firms pursue partnerships and acquisitions, such as Qualcomm’s acquisition of Foundries.io in 2024, enhancing its IoT portfolio and open-source capabilities, further driving market expansion.

The IoT chipset market faces several challenges that could impact its growth and development. One major hurdle is the complexity of designing chips that balance high performance with low power consumption, essential for the long battery life required by many IoT devices. Additionally, ensuring robust security and data privacy within IoT chipsets is critical, as connected devices are increasingly vulnerable to cyberattacks. Interoperability issues among diverse IoT standards and protocols also pose difficulties, limiting seamless communication between devices from different manufacturers.

Qualcomm Technologies Inc., Intel Corporation, STMicroelectronics N.V., Texas Instruments Incorporated, NXP Semiconductors N.V., Samsung Electronics Co. Ltd., Analog Devices Inc., MediaTek Inc., Microchip Technology Inc., Infineon Technologies AG.

By Product: Based on the Product, Global IoT Chipset Market is segmented as; Connectivity Integrated Circuits (ICs), Logic Devices, Memory Devices, Processors, Sensors.

By End-use: Based on the End-use, Global IoT Chipset Market is segmented as; Consumer Electronics, Wearable Devices, Automotive & Transportation, BFSI, Healthcare, Retail, Building Automation, Oil & Gas, Agriculture, Aerospace & Defense, Others.

By Region: This research also includes data for North America, Latin America, Asia-Pacific, Europe, Middle East & Africa.

This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.