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IoT SoC Market Overview:
IoT SoC Market size is estimated to reach $41 billion by 2031, growing at a CAGR of 8.5% during the forecast period 2024-2031. Connected devices can communicate with each other and with the internet. This is a rapidly growing market, as more and more devices are becoming connected. IoT SoCs are essential for the development of connected devices, and the rising demand for security in IoT devices is propelling the IoT SoC Market growth.
Additionally, the surge in investments and rapid deployment of 5G technology has a profound impact on the Internet of Things System-on-Chip (IoT SoC) market. The widespread adoption of 5G networks significantly enhances the capabilities of IoT devices, and this synergy between 5G and IoT drives the growth of the IoT SoC market According to the GSMA, 5G networks will cover one-third of the world's population by 2025. According to the organization, the number of 5G connections will exceed 1 billion by the end of 2022 and 2 billion by 2025, accounting for more than a fifth of all mobile connections. These factors positively influence the IoT SoC Market outlook during the forecast period.
Market Snapshot:
IoT SoC Market - Report Coverage:
The “IoT SoC Market Report - Forecast (2024-2031)” by IndustryARC, covers an in-depth analysis of the following segments in the IoT SoC Market.
COVID-19 / Ukraine Crisis - Impact Analysis:
• 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.
Key Takeaways:
• Fastest Growth of North America Region
Geographically, in the global IoT SoC Market share, North America is analyzed to grow with the highest CAGR of 9.6% during the forecast period 2024-2031. North American region has been swift to adopt advanced wireless connectivity protocols such as 4G LTE and 5G, which allow IoT devices and the cloud to communicate seamlessly. The availability of high-speed, low-latency connectivity has accelerated the proliferation of IoT applications, fuelling demand for specialized SoCs.
For instance, according to the GSM Association, The US and Canada are among the top countries in the world for 5G adoption as the technology spreads across the globe. roughly 280 million mobile connections in North America will be powered by 5G by the year 2025, which is equivalent to nearly 280 million connections. The widespread adoption of 5G technology in North America is set to have a significant impact on the demand for IoT (Internet of Things) System on Chip (SoC) devices
• Hardware to Register the Fastest Growth
The global market experienced a surge in the demand for hardware equipment across industries. Hardware played a crucial role in enabling automation, trend detection, and accurate communication in industrial lots. As a result, the hardware segment dominated the market, supporting market growth. The increasing demand for hardware equipment was driven by the need for high accuracy and precision in industrial operations. This trend continued as industries increasingly relied on hardware to improve efficiency, productivity, and performance. With its vital role in industrial ecosystems, hardware remained a key driver of market growth.
• Industrial Automation is Leading the Market
According to the IoT SoC Market forecast, the inlaid production process held the largest market valuation of $10 billion in 2023. IoT has had a significant impact on industrial automation, leading to increased efficiency, productivity, decision-making, reduced downtime and maintenance costs, and improved safety and security. IoT applications in industrial automation include predictive maintenance, smart manufacturing, supply chain management, and quality control/inspection. For instance, according to the Association for Advancing Automation (A3) reported a 28% surge in robot sales in 2021 compared to the previous year. Future trends and developments in IoT automation include advancements in sensor technology, AI and ML technologies, edge and fog computing, and 5G mobile networks.
• Adoption of advanced technologies due to the rising trend of industry 4.0
The substantial investments made by leading nations in Industry 4.0 align with the growth of IoT and SoC markets. As countries allocate resources to modernize their manufacturing sectors, they drive demand for advanced IoT devices and SoCs that can support the connectivity, processing, and intelligence required for smart factories and production. Industry 4.0 promotes a technologically driven production movement toward sustainability. According to Invest India, leading nations such as the United States, Singapore, Sweden, and Japan are adopting this trend, investing significantly from $10.5 billion in 2011 to $103 billion in 2021, with a predicted increase to $200 billion by 2025. This revolution holds promise in addressing poverty, climate change, and resource depletion, shaping the IoT SoC market.
• Security And Privacy Concerns Impede the Growth of the Market Growth
The importance of privacy and data protection is becoming increasingly recognized as more social and economic activities take place online. Legislation to secure the protection of data and privacy has been put in place in 137 out of 194 countries. However, there are disparities in adoption levels, with Africa and Asia having lower rates than other regions. The least developed countries have the lowest adoption rate at only 48%. This factor impedes the IoT SoC Market growth.
Key Market Players:
Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the IoT SoC Market. The top 10 companies in this industry are listed below:
1. Microsoft Corporation (Microsoft® SQ1™ processor, Azure RTOS)
2. Google Inc. (Google Tensor, Google Cloud IoT Core)
3. Amazon Web Services (AWS IoT Core, AWS IoT Device Management)
4. IBM Corporation (IBM Watson IoT Platform, IBM Edge Application Manager)
5. NXP Semiconductor Inc (Arm®-based Processors, Power Architecture® Processors)
6. Qualcomm (Qualcomm® QCS605 SoC, Qualcomm® 3D Sonic Sensors)
7. Microchip Technology (AVR®, PIC®)
8. Texas Instruments (Tiva™C Series, CC1352R)
9. Cisco Systems Inc. (Cisco MGX 8800/8900, Cisco NCS 5500)
10. MediaTek Inc. (NB-IoT, ARM A78)
Scope of the Report:
1. IoT SoC Market - Overview
1.1. Definitions and Scope
2. IoT SoC Market - Executive Summary
3. IoT SoC Market - Comparative Analysis
3.1. Company Benchmarking - Key Companies
3.2. Global Financial Analysis - Key Companies
3.3. Market Share Analysis - Key Companies
3.4. Patent Analysis
3.5. Pricing Analysis
4. IoT SoC Market - Start-up Companies Scenario
4.1. Key Start-up Company Analysis by
4.1.1. Investment
4.1.2. Revenue
4.1.3. Venture Capital and Funding Scenario
5. IoT SoC Market – Market Entry Scenario Premium
5.1. Regulatory Framework Overview
5.2. New Business and Ease of Doing Business Index
5.3. Case Studies of Successful Ventures
6. IoT SoC Market - Forces
6.1. Market Drivers
6.2. Market Constraints
6.3. Market Challenges
6.4. Porter's Five Force Model
6.4.1. Bargaining Power of Suppliers
6.4.2. Bargaining Powers of Customers
6.4.3. Threat of New Entrants
6.4.4. Rivalry Among Existing Players
6.4.5. Threat of Substitutes
7. IoT SoC Market – Strategic Analysis
7.1. Value Chain Analysis
7.2. Opportunities Analysis
7.3. Market Life Cycle
8. IoT SoC Market – by Component (Market Size – $Million/$Billion)
8.1. Hardware
8.2. Software
8.3. Integration software
8.4. End point detection and response software
8.5. Predictive analytics software
8.6. Others
8.7. Services
8.8. Consulting service
8.9. Support and maintenance
8.10 .Deployment and integration
8.11 .Managed service
8.12 .Professional service
9. IoT SoC Market – by Type (Market Size – $Million/$Billion)
9.1. Digital
9.2. Analog
9.3. Mixed Signal
10. IoT SoC Market – by Network (Market Size – $Million/$Billion)
10.1. Short-range wireless
10.1.1. Bluetooth mesh networking
10.1.2. Light-Fidelity (Li-Fi)
10.1.3. Near-field communication (NFC)
10.1.4. Wi-Fi
10.1.5. ZigBee
10.1.6. Z-Wave
10.2. Mid-range wireless
10.2.1. LTE-Advanced
10.2.2. 5G
10.3. Long-range wireless
10.3.1. Low-power wide-area networking (LPWAN)
10.3.2. Very small aperture terminal (VSAT)
10.3.3. Power-line communication (PLC)Bluetooth
10.3.4. Non-Residential (Commercial/Industrial)
11. IoT SoC Market – by Organization Size (Market Size – $Million/$Billion)
11.1. Large Enterprises
11.2. Small Enterprises
11.3. Medium Enterprises
12. IoT SoC Market – By Deployment Mode (Market Size – $Million/$Billion)
12.1. Cloud-based
12.2. On-premises
13. IoT SoC Market – by Application (Market Size – $Million/$Billion)
13.1. Automated systems
13.2. Data Processing & Management
13.3. Security Solutions
13.4. Remote Monitoring System
13.5. Real-Time Streaming
13.6. Other
14. IoT SoC Market – by End User (Market Size – $Million/$Billion)
14.1. Manufacturing and Industrial Machinery
14.2. Power and Energy
14.3. Automotive
14.4. Oil & Gas
14.5. Chemical
14.6. Healthcare and Pharmaceuticals
14.7. Infrastructure
14.8. Industrial automation
14.9. Agriculture & Life sciences
14.10 .Transportation & Logistics
14.11 .Aerospace and Defense
14.12 . Retail & E-commerce
14.13 . IT and Telecom
14.14 .Others
15. IoT SoC Market – by Geography (Market Size – $Million/$Billion)
15.1. North America
15.1.1. The U.S.
15.1.2. Canada
15.1.3. Mexico
15.2. Europe
15.2.1. UK
15.2.2. Germany
15.2.3. France
15.2.4. Italy
15.2.5. Spain
15.2.6. Russia
15.2.7. Rest of Europe
15.3. Asia-Pacific
15.3.1. China
15.3.2. India
15.3.3. Japan
15.3.4. South Korea
15.3.5. Australia & New Zealand
15.3.6. Rest of Asia-Pacific
15.4. South America
15.4.1. Brazil
15.4.2. Argentina
15.4.3. Chile
15.4.4. Colombia
15.4.5. Rest of South America
15.5. Rest of the World
15.5.1. Middle East
15.5.2. Africa
16. IoT SoC Market – Entropy
17. IoT SoC Market – Industry/Segment Competition Landscape
17.1. Market Share Analysis
17.1.1. Market Share by Region – Key Companies
17.1.2. Market Share by Country – Key Companies
17.2. Competition Matrix
17.3. Best Practices for Companies
18. IoT SoC Market – Key Company List by Country Premium
19. IoT SoC Market - Company Analysis
19.1. Microsoft Corporation
19.2. Google Inc.
19.3. Amazon Web Services
19.4. IBM Corporation
19.5. NXP Semiconductor Inc
19.6. Qualcomm
19.7. Microchip Technology
19.8. Texas Instruments
19.9. Cisco Systems Inc.
19.10 .MediaTek Inc
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The IoT SoC Market is projected to grow at 8.5% CAGR during the forecast period 2024-2031.
Global IoT SoC Market size is estimated to be $32 billion in 2023 and is projected to reach $41 billion by 2031.
The leading players in the IoT SoC Market are Mohawk Industries Inc., Microsoft Corporation, Google Inc., Amazon Web Services, IBM Corporation, NXP Semiconductor Inc., Qualcomm, Microchip Technology, Texas Instruments, Cisco Systems Inc., MediaTek Inc. and others.