According to a Research and Markets report, the IoT chip market was valued at US$25.837 billion for the year 2019. The growth of this market is majorly attributed to the growing demand for electronic devices. Impressive economic growth, rising disposable income, and improvement in the standard of living are driving the demand for electronic devices, especially in developing economies such as China, India, and Brazil among others.
The miniaturisation of the electronic devices is leading to more complex designing that requires several functionalities to be deployed on a single chip, which is boosting the growth of the market. The demand for such design is increasingly gaining traction in the market owing to its burgeoning use across industries such as consumer electronics, automotive, communication and technology, and healthcare among others. Growing penetration of Internet of Things (IoT) in the automotive and other industries is one of the major drivers that are boosting the market growth.
Rising penetration of IoT
IoT is one of those technologies that is set to become ubiquitous in almost every industry. The affordability of sensor technology is playing an important role in the burgeoning adoption of IoT across industries. Its penetration in industries is leading to more complexity at the circuit level that requires an integration of a number of designs on a single chip, thus boosting the demand for IoT chip. Since, IoT chip applications are gaining traction in the market owing to their utilisation in a number of applications such as auto-pilot cars, electronic devices, home automation, and others, the demand for IoT chip is poised to grow in the upcoming years.
In the automotive sector, IoT has gained adoption in several areas such as in-vehicle infotainment, predictive maintenance, security, surveillance, and safety, and cognitive insights for management among others which has significantly driven the need for more sophisticated electronic control units, therefore augmenting the market growth.
Rising investments in 5G Technology
The growing internet penetration coupled with rapid advancements in wireless technology is further expected to propel the market growth opportunities during the coming years. A significant surge in the number of internet users across the globe is further anticipated to propel the investments by the major service providers in order to develop more fast and advanced services to cater to the growing user needs. For instance, in 2010 there were only 28.753 percent people across the globe were using the internet, and this number increased to 49.723 percent by 2017.
A rising trend is expected during the coming years, which will further snowball the demand for fast and high-speed internet. Budding investments for the deployment of 5G technology is further expected to drive the growth of the market during the forecast period and beyond. The incorporation of 5G technology is considered as the next generation of mobile internet connectivity, which is expected to offer better speeds, more reliable connections from the current technology. Moreover, 5G is expected to operate on much higher frequencies which are further anticipated to the adoption of new interface and component technologies which may further positively impact the growth of the market.
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