Internet of Things (IoT) is an internetworking of physical and virtual objects that enables physical and virtual devices to relate to each other through cloud technology for exchange data and information. With technological advancements and collecting dependence on technology, IoT concept is expected to have an encouraging future. The global IoT Chip market is driven by the growing demand for IPV6 internet protocol, increasing inclination toward utilization of AI and 5G technologies due to the rising trend of Industry 4.0. Growing low-cost smart wireless sensor networks, rising demand for connected and wearable devices, growing application-specific MCUs and flexible SoC-type designs will impel market growth in the upcoming period. However, the absence of standardization of communication protocol around various platforms and issues about privacy and security of user data may restrain the market growth at the global level. The rising number of smart cities in emerging economies, government finance in innovation, and R&D activities of IoT are projected to create beneficial growth opportunities for key players in the market. High power consumption of connected devices is the major challenge for the IoT chip market in the near future.