IoT SoC Market Size Worth $41 Billion By 2031: IndustryARC

The Global IoT SoC Market size is predicted to reach $41 billion by 2031, growing at a CAGR of 8.5% during the forecast period 2024-2031 according to the latest market research report published by IndustryARC. The Internet of Things (IoT) and System-on-chip (SoC) markets have experienced a significant surge in demand in recent years. This is largely due to the increasing need for connected devices and the integration of smart technology into various industries. The IoT and SoC markets are expected to continue to grow in the coming years, driven by the demand for faster and more efficient data processing, improved automation, and enhanced connectivity are poised to propel the market growth, finds IndustryARC in its recent report, titled “IoT SoC Market Size, Share & Trends Analysis Report By Component: Hardware, Software (Integration software, End point detection and response software, Predictive analytics software, Others), Services (Consulting service, Support and maintenance, Deployment and integration, Managed service, Professional service), By Organization Size: Large Enterprises, Small and Medium Enterprises, By Deployment Mode (On-premise, Cloud based, By Platform (Network Management, Application Management, Device Management), By Application, (Automated systems, Data Processing & Management, Security Solution , Remote Monitoring System, Real-Time Streaming, Others), By Network [Short range wireless (Bluetooth mesh networking, Light-Fidelity (Li-Fi), Near-field communication (NFC), Wi-Fi, ZigBee, Z-Wave), Mid-range wireless (LTE-Advanced, 5G ), Long range wireless (Low-power wide-area networking (LPWAN), Very small aperture terminal (VSAT) Power-line communication (PLC), By Applications (Automated systems, Data Processing & Management, Security Solutions, Remote Monitoring System, Real-Time Streaming, Other) By End user (Manufacturing and Industrial Machinery, Power and Energy, Automotive, Oil & Gas, Chemical, Healthcare and Pharmaceuticals, Infrastructure, Industrial automation, Agriculture & Life sciences, Transportation & Logistics, Aerospace and Defense, Retail & E-commerce, IT and Telecom, Others), By Region and Segment Forecasts, 2024–2031”

North America to Register Highest Growth:

North America in this region is expanding due to the rise in demand for anticipates a substantial rise in corporate expenditure on 5G and edge computing due to the introduction of 5G network services. Additionally, according to the ICT industry association Brasscom, predicts a surge in enterprise 5G and edge computing spending with the advent of 5G network services. Datacenter investments grew by 17% YoY to $850 million, reflecting high demand for essential online infrastructure. Brasscom also foresees $86 billion investment in mobile projects from 2021-2024

By Component

  • Hardware

  •  Software

  • Integration software

  •  End point detection and response software

  •  Predictive analytics software

  • Others

  • Services

  • Consulting service

  • Support and maintenance

  • Deployment and integration

  • Managed service

  • Professional service

By Product Type

  • Processor

  •  Sensor

  • Connectivity IC

  • Memory Device

  •  logic Device

By Type

  • Digital

  • Analog

  • Mixed Signal

By Network

  • Short-range wireless

  • Bluetooth mesh networking

  •  Light-Fidelity (Li-Fi)

  • Near-field communication (NFC)

  •  Wi-Fi

  • ZigBee

  •  Z-Wave

  •  Mid-range wireless

  • LTE-Advanced

  • 5G

  •  Long-range wireless

  •  Low-power wide-area networking (LPWAN)

  •  Very small aperture terminal (VSAT)

  •  Power-line communication (PLC)Bluetooth

By Organization Size

  • Large Enterprises

  • Small Enterprises

  •  Medium Enterprises

By Platform

  • Network Management

  •  Application Management

  •  Device Management

By Deployment Mode

  • Cloud-based

  •  On-premises

By Application

  • Automated systems

  •  Data Processing & Management

  •  Security Solutions

  •  Remote Monitoring System

  •  Real-Time Streaming

  •  Other

By End user

  • Manufacturing and Industrial Machinery

  •  Power and Energy

  •  Automotive

  • Oil & Gas

  •  Chemical

  •  Healthcare and Pharmaceuticals

  •  Infrastructure

  •  Industrial automation

  •  Agriculture & Life sciences

  • Transportation & Logistics

  •  Aerospace and Defense

  •  Retail & E-commerce

  •  IT and Telecom

  •  Others

By Region

  • North America

  • South America

  • Europe

  •  Asia-Pacific

  • Rest of the World

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IoT SoC Market Report – Key Takeaways:
• Processors Segment Registered the Highest Growth
The increasing demand for high-performance processors with low power consumption, the growing adoption of IoT and AI technologies, and the need for advanced security features are the primary driving factors for the processor segment in the IoT and SoC markets.

• Power and Energy to Register the Fastest Growth
Power and Energy segment is analyzed to grow with the highest CAGR of 10.2% during the forecast period. According to the International Energy Agency, the energy sector is expected to attract around USD 2.8 trillion in investments in 2023. More than USD 1.7 trillion of this investment will be directed towards clean energy, including renewable power, nuclear, grids, storage, low-emission fuels, efficiency improvements, and end-use renewables and electrification. This growth in clean energy is expected to drive the power and energy industry's highest growth.

• Asia Pacific is Leading the Market
Asia Pacific region held a major market share of 35% in 2023. According to International Data Corporation, AI system spending in Asia/Pacific would increase from $20.6 billion in 2022 to $46.6 billion in 2026. Organizations can remain competitive by leveraging AI to improve process efficiency and make more informed business decisions. The prediction for 2021-2026 forecasts a 23.7% CAGR, underlining AI's critical role in sustaining market relevance. Such projects will further drive the demand for the IoT Soc market in this region thereby expanding the market.

• Infrastructure investments are a Major Driver for The Market 
The European Commission has allocated $6.75 billion from the Connecting Europe Facility (CEF) to support 107 transport infrastructure projects. Over 80% of the funding will enhance greener and smarter railways, waterways, and maritime routes in the trans-European transport network, including strengthening the EU-Ukraine Solidarity Lanes for trade facilitation. Additionally, these infrastructure developments play a significant role in driving the IoT SoC market, further advancing connectivity and innovation.

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Key Opportunity Analysis: 

5G Integration in IoT SoCs Creates Significant Market Opportunities.
The roll-out of 5G networks brings up new opportunities for IoT applications requiring high data rates and ultra-low latency. SoCs that can connect easily with 5G networks will be critical for enabling enhanced IoT use applications.
The GSM Association reports that several of 2023's new 5G launches are planned in developing areas like Africa (Ethiopia, Ghana) and Asia. While sub-Saharan 5G adoption is now under 1%, it's predicted to rise to 4% by 2025 and 16% by 2030 due to collaborative initiatives by industry and governments to enhance citizen connectivity boosting the IoT SoC Market Growth. 

• Agriculture Sector Offers Significant Opportunities for the Market
IoT SoCs can control greenhouse environments by adjusting temperature, humidity, and lighting conditions. This level of automation optimizes growing conditions and extends the growing season for various crops. 
Additionally, the U.S. Department of Agriculture commits over $3 billion to boost climate-smart commodities, supporting farmers and landowners. Initial $2.8 billion funding for 70 projects announced, the Smart Agriculture for IoT SOC market is expected to see significant growth as a result of this initiative which will boost the market growth.

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The Report also Covers the Following Areas:
IoT SoC Market Size and Forecast 
IoT SoC Market Trends
IoT SoC Market Analysis by Product Type

IoT SoC Market 2023-2031: Key Highlights

CAGR of the market during the forecast period 2024-2031
Value Chain analysis of key stake holders
Detailed analysis of market drivers and opportunities during the forecast period
IoT SoC Market size estimation and forecast
Analysis and predictions on end users’ behavior and upcoming trends 
Competitive landscape and Vendor market analysis including offerings, developments, and financials
Comprehensive analysis of challenges and constraints in the IoT SoC Market

Covid and Ukrainian Crisis Impact:
The pandemic has had a significant impact on demand for cellular IoT in healthcare and other industries. With more companies focusing on digital technologies to interact with their clients and customers, and people becoming more reliant on digital sources, there has been an increased demand for cellular IoT connectivity. The pandemic has accelerated the shift towards digitization and automation, making cellular IoT connectivity even more critical for businesses looking to boost sales during this period.

The Russia-Ukraine crisis is having a significant negative impact on the IoT and SoC markets. The sanctions imposed on Russia have disrupted the supply chain, shipping, and research and development of these technologies. This is making it more difficult and expensive to produce and purchase IoT and SoC devices, and it is slowing down the pace of innovation in the market. For instance, in 2022 Texas Instruments, a major semiconductor company announced Texas Instruments said it had not shipped to Russia shipping chips. This decision further disrupted the supply chain for IoT and SoC devices.

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List of Key Market Players in IoT SoC Market:
The Global IoT SoC Market is fragmented with several global and regional companies operating with expansive manufacturing capabilities and extensive distribution networks. The key companies profiled are listed below:

Microsoft Corporation
Google Inc.
Amazon Web Services
IBM Corporation
NXP Semiconductor Inc 
Microchip Technology 
Texas Instruments
Cisco Systems Inc.
MediaTek Inc
Intel Corporation
Oracle Corporation
Broadcom Inc.
Infineon Technologies
Microchip Technology

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Mobile SoC Market – Mobile SoC Market is projected to grow at a CAGR of 18.1% during the forecast period from 2024 to 2031. The burgeoning number of mobile users across the globe, which is projected to observe a remarkable escalation in the near future, is significantly supporting the mobile SoC market that is poised to witness substantial growth prospects over the forecast period.

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