A new market report, titled “Global IoT Chip Market – Analysis and Forecast, 2019-2029” by BIS Research, has found that the worldwide IoT chip market, which was valued at $9.40 billion in 2019, is now expected to grow over $38.61bn at a CAGR of 15.8% by 2029.
The overall market demand for IoT chips is driven by the rising adoption rate of IoT-based devices and decreasing cost of IoT sensors, the research firm added.
According to the report, the growing demand for IoT chipset-based consumer and industrial devices, together with the integration of AI across several industries, are some of the prominent factors contributing to the market growth of IoT chips across the world. Yet, substantial early investments and the complication regarding the integration of IoT technology with already existing devices are some of the challenging aspects that must be addressed at the current stage.
Furthermore, BIS added, IoT integrated with AI for decision-making applications is likely to generate several market opportunities as huge amount of unorganised data generated from connected devices is converted into useful information with the help of integration of AI algorithms.
Earlier this month, Gartner’s analysis of the global semiconductor market revealed a year-on-year decline of 11.9%, with the overall figure at $418.3bn. The report found Intel had regained its position as the number one global semiconductor vendor by revenue in 2019, beating Samsung Electronics, which held the top position in 2017 and 2018. Gartner’s report from July had already predicted a worldwide decline in semiconductor revenue in 2019 – albeit the forecast figure was at 9.6% from 2018.