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2024: The first Russian chip for reading RFID tags from 14 meters has been released
In September 2024, the largest Russian microelectronics manufacturer Micron presented the first domestic microcircuit for RFID tags with a reading range of up to 14 meters. The new chip, under the designation M25v4, is designed to mark and identify objects on various surfaces and in difficult operating conditions. Its implementation will significantly expand the capabilities of Russian enterprises in the field of digitalization and automation of processes. Read more here
2023: Sales of chips for Internet of Things devices in the world exceeded $0.5 trillion for the year
In 2023, the global market for chips for Internet of Things (IoT) devices reached $537.36 billion. In the future, this industry will demonstrate steady growth. This is stated by analysts at Fortune Business Insights in a report dated September 9, 2024.
It is noted that the market was seriously affected by the COVID-19 pandemic, which provoked interruptions in supply chains and disruption of production. Restrictions imposed by governments around the world on people's movements have also discouraged increased sales. But against the background of the abolition of strict quarantine measures, growth rates began to recover. The authors of the report call the development of peripheral computing and artificial intelligence one of the stimulating factors, which increases the need for IoT chips. In addition, the number of all kinds of devices connected to the Internet is rapidly increasing - from smartphones and wearable gadgets to sensors and monitoring tools. The active introduction of Internet of Things technologies in industries, in the field of transport, in smart households and urban infrastructure also continues. All this equipment requires IoT chips.
At the same time, the authors of the study highlight several restraining factors. Data security and privacy are major constraints for faster market growth. IoT devices generate a huge amount of information that attackers can use when implementing various criminal schemes. Therefore, the introduction of additional protective equipment is required.
Significant players in the industry in question are, Qualcomm,, Samsung,, Intel,, MediaTek,, and Texas Instruments. STMicroelectronics NXP Semiconductors By Broadcom Huawei application, Microchip Technology the market is segmented into healthcare, consumer electronics, automotive, banking, financial services and insurance, retail, building automation, etc. In 2023, the consumer sector provided the largest revenue, electronic engineers including products such as smart speakers, thermostats, lighting systems, safety cameras and household appliances. At the same time, the segment shows health care the highest growth rates.
By product type, the market is divided into processors, communication integrated circuits, sensors, storage and logical devices. The processor segment held the largest share of the global IoT chip market in 2023, but the sensor direction is developing most rapidly. Sensors are responsible for collecting critical data that enables real-time monitoring, predictive maintenance, and decision-making. By the connection method, segments, Wi-Fi,, Bluetooth RFID cellular networks, etc. are distinguished. In 2023, the largest share was provided by chips with Wi-Fi support, while the highest growth rates are recorded in the field of cellular communications. From a regional point of view, the leader, North America which in 2023 accounted for $173.24 billion in revenue. A well-developed telecommunications infrastructure is available here, including high-speed Internet and extensive cellular network coverage, which encourages the introduction of IoT devices and systems.
Fortune Business Insights analysts believe that by the end of 2024, the industry will amount to $605.59 billion. In the future, the CAGR (compound percentage CAGR) in the global IoT chip market is expected to be 13.5%. As a result, by 2032, costs globally will reach $1.66 trillion.[1]
2019: Global spending - $370.9 billion
The volume of the global market for chips for Internet of Things (IoT) equipment in 2019 reached $370.9 billion, according to the analytical company ResearchAndMarkets.
Experts did not compare with sales in 2018 and only noted that the market is growing and will continue to do so in the future. According to experts, global costs for semiconductor components for IoT devices will rise by 6% annually and amount to $525.4 billion by 2025.
In their study, analysts looked at the costs of chips that are used in smart home systems, electric meters with cloud server connectivity functions, etc. The growing demand for such electronics contributes to the rise of the chip market for IoT solutions.
In addition, analysts attributed the following to the number of factors stimulating the growth of the market in question:
- Growth in the supply of task-specific microcontrollers (MCUs) and flexible modules based on single-chip systems
- the introduction of IPv6, which has increased the number of IP addresses in the Internet space;
- the development of Internet communications and new technologies (for example, artificial intelligence) that help the implementation of IoT projects;
- the growing popularity of smart networks using low-cost wireless sensors.
At the same time, several factors are listed that interfere with the development of the chip market for IoT devices. Among them are problems with information security and privacy of user data.
The researchers named the following companies as the leaders in the global market for semiconductor solutions for IoT equipment:
- Intel;
- Texas Instruments;
- Qualcomm;
- NXP Semiconductors;
- MediaTek;
- Marvell Technology;
- Microchip;
- Cypress Semiconductor;
- Renesas Electronics;
- Huawei Technologies;
- Nvidia;
- Samsung Electronics;
- AMD;
- STMicroelectronics;
- TE Connectivity;
- Nordic Semiconductor;
- Gainspan;
- Expressif Systems;
- Dialog Semiconductor;
- Silicon Labs.
Manufacturers of such chips are in Russia. The first Russian microcircuit for the Internet of Things Holding "Roselectronics" presented at the end of 2018. This 5x5 mm chip is designed to receive and transmit information in the optimal frequency range for the Internet of Things in the frequency range from 100 MHz to 2.5 GHz. The solution provides digital communication at a distance of up to 30 km.
ResearchAndMarkets noted that in 2019, a surge in demand for chips for IoT equipment was observed in the aerospace and defense industries, as Internet of Things technology helps to better understand the data recorded by sensors, allowing you to improve flight safety, better control them and achieve high efficiency in general. IoT chips help improve equipment maintenance, as performance can be analyzed in real time, and on-the-ground professionals can quickly diagnose problems and reduce downtime, thereby reducing costs.
If we talk about geographical separation, then the largest increase in chip sales for IoT technology takes place in the Asia-Pacific region. There are several reasons for this:
- the growing penetration of the Internet among enterprises and organizations, as well as in the residential sector:
- large number of consumers;
- an increase in the average income of the population;
- improving IT infrastructure.
The adoption of cloud services and the growth trend of industrial automation are key factors in the growth of the chip market for IoT in commercial projects in countries such as China, South Korea and Japan, the report said.[2]