IoT semiconductor market projected to reach $1.228 trillion by 2030

The global IoT semiconductor market is projected to reach $1.228 trillion by 2030, growing at a compound annual growth rate (CAGR) of 15.7%. The market is expected to rise from $589.7 billion in 2025 to $682.49 billion in 2026.

Key growth drivers include the expansion of smart cities, increased demand for automotive connectivity, predictive maintenance solutions, edge AI integration, and the proliferation of environmental monitoring devices. Previous growth has been supported by the adoption of smart home devices, wearable technology, industrial automation, and advanced wireless communication standards.

Technological trends show a move toward advanced dual-range motion sensors. For instance, STMicroelectronics announced a 3-in-1 MEMS motion sensor for industrial IoT in June 2025, which integrates edge AI capabilities to enable real-time event detection and context awareness while reducing power consumption.

In terms of market activity, Trasna Solutions Technologies Limited acquired u-blox’s cellular IoT module business in March 2025 to strengthen its connectivity offerings. Geographically, North America is expected to be the largest market in 2025, while the Asia-Pacific region is projected to be the fastest-growing.