Market Overview:

Global System On Chip Market was valued at approximately USD 168.93 Billion in 2023. Over the course of the forecast period (2024–2031), the market is expected to develop at a compound annual growth rate (CAGR) of 8.1%, reaching a value of USD 305.98 Billion by 2031.

The global system-on-a-chip (SoC) market is a vibrant, quickly growing sector of the economy that is essential to the development of numerous technological fields. Integrated circuits, or SoCs, are made up of several parts that are combined into a single chip, including peripherals, memory, and CPUs. Because of this integration, SoCs can perform better, use less power, and be smaller, which makes them ideal for a wide range of applications, including tablets, smartphones, automobile electronics, Internet of Things devices, and more. The SoC market exists to meet the increasing need for sophisticated, multipurpose electronics.

SoCs have emerged as the key component of contemporary electronics due to the growth of linked devices and the growing demand for seamless communication and computing power. They make it easier to integrate different functionality, make miniaturization easier, and offer affordable solutions for a range of sectors. The demand for powerful SoCs that can enable high-performance processing and effective power management is driven by the exponential rise in the adoption of smartphones and other smart devices. Furthermore, the need for SoCs with connection, security, and data processing capabilities is fueled by the Internet of Things' (IoT) rapidly growing ecosystem, which consists of linked devices across many industries such as automotive, healthcare, and industrial automation.

However, there are a few limitations to take into account despite the market's enormous potential. The intricate creation and production process of SoCs, that necessitates large expenditures in knowledge and research and development (R&D), is one such constraint. Furthermore, the growing intricacy of designs presents problems with compatibility, power consumption, and thermal management, which could impede industry expansion. Three major trends influencing the SoC industry are the incorporation of AI capabilities, the introduction of 5G technology, and the emphasis on energy efficiency.

The need for SoCs with AI capabilities is rising as a result of the expanding requirement for machine learning as well as AI-driven applications in a variety of industries. In addition, the introduction of 5G technology increases the need for SoCs that can accommodate increased connection, reduced latency, and larger data rates. In addition, energy-efficient SoC designs are becoming more and more important in order to solve environmental issues and increase the battery life of portable electronics. For SoC manufacturers, there are exciting opportunities due to the growing number of IoT devices, the growing need for AI-powered applications, & the continuous development of smart cities and autonomous vehicles. Further enhancing market prospects are the growth of emerging economies & industry-wide digital transformation programs.

Market Dynamics:

Market Drivers:

Demand for Compact and Power-Efficient Devices

• The Increasing demand for small and power-efficient electronic devices in a variety of industries, including as consumer electronics, automotive, medical care, and IoT (Internet of Things), is driving the system-on-chip market. The microprocessors memory, graphics processing units (GPUs), & interfaces for communication are just a few of the functional components that SoCs combine into a single chip.The demand for System-on-a-Chips (SoCs) that can give high processing power, interaction, with multimedia capabilities within strict space and power limits has increased due to the growth of mobile phones, tablets, wearables, and Internet of Things (IoT) devices. To improve safety, comfort, and efficiency while lowering vehicle weight and energy consumption, the automotive sector is also implementing SoCs for infotainment systems, vehicle electrification applications, and advanced driver assistance systems (ADAS). SoCs are also being used by smart household appliances, industrial automation equipment, & healthcare devices to enable intelligent sensing, processing of data, and networking functions. The growing consumer demands for electronic devices with smaller form forms, longer battery lives, and seamless connection are likely to propel innovation in the system-on-a-chip market. This will increase the demand for extremely integrated and power-efficient SoCs.

Advancements in Semiconductor Manufacturing Technologies

• The ongoing developments in semiconductor manufacturing processes that allow for increased levels of integrating, performance, & energy efficiency in SoC designs are what drive the system-on-chip market. More transistors and functional blocks can be integrated onto a single chip while consuming less power and dissipating less heat thanks to semiconductor fabrication processes like CMOS (complementary metal-oxide-semiconductor) the internet, which is developing to smaller process nodes like 7nm, 5nm, and beyond. Furthermore, advances in packaging methods allow for tighter integration of diverse subsystems and parts within SoCs, further improving performance and downsizing. Examples of these breakthroughs include 3D stacking, system-in-package (SiP), & wafer-level integration (WLI). Moreover, semiconductor businesses may design and optimize complex SoC architectures more effectively, cutting development costs and time-to-market, by implementing advanced design tools for automation, EDA (electronic design automation) software, or system-level design techniques. The System-on-Chip Market is expected to gain from enhanced integration the density, performance scalability, as well as design flexibility as semiconductor manufacturers persist in pushing the limits of Moore's Law and advancing process technology.  

Market Trends:

Combining Machine Learning (ML) with Artificial Intelligence (AI) Capabilities

• The growing incorporation of machine learning (ML) and artificial intelligence (AI) features into SoC designs is known as the System-on-Chip market. The demand for hardware acceleration devices and specialized processors designed for AI inference, neural networks computations, and other advanced learning activities is being driven by the rising pervasiveness of AI and ML techniques across numerous industries. In order to support arising AI-driven applications like natural language processing, computer vision, speech recognition, in addition autonomous systems, as well as to enable successful execution of AI algorithms, SoC vendors have begun to incorporate dedicated AI/ML accelerators like a tens processing unit (TPUs), neural computation units (NPUs), in addition AI coprocessors into their chip designs. Furthermore, in order to provide scalable as well as power-efficient AI performance, SoC architectures are developing to accommodate heterogeneous computing paradigms. These paradigms involve mixing DSPs, specialist AI accelerators, GPUs, and general-purpose CPUs on a single chip. By incorporating AI/ML capabilities into SoCs, embedded systems, edge devices, and IoT endpoints may make decisions locally in real-time and infer from data, which lowers latency, bandwidth needs, and reliance on cloud-based AI services.

Focus on Security and Trustworthiness

• The rising emphasis on reliability and security in SoC designs in response to the growing dangers from malicious activities, data breaches, and cyberattacks that target IoT ecosystems and connected devices. To guard against unauthorized access, manipulation, and the exploitation of system weaknesses, SoC suppliers are introducing silicon-based security features, such as cryptographic accelerators, trusted execution environments (TEEs), secure boot, and hardware root of trust. Furthermore, the implementation of security best practices and legal obligations in SoC development processes is being driven by industry standards and certification frameworks like Unified Criteria, FIPS (Federal Information Processing Standards), & ISO/IEC 27001.  

Market Restraining Factors:

Complex Manufacture and Design Procedure

• The intricate process of designing and producing System-on-a-Chip (SoC) poses a notable obstacle to the market. Creating and manufacturing SoCs requires complex fabrication methods, layout design, and circuitry, requiring for large R&D expenditures and specialist knowledge. Manufacturers may face difficulties as a result of this intricacy, which may hinder their ability to launch new goods swiftly. Furthermore, smaller market participants may find it difficult to compete due to the high prices of sophisticated fabrication technologies such nanoscale techniques.

Report Coverage:

The report will cover the qualitative and quantitative data on the global System On Chip Market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.

Report Scope and Segmentations:

System On Chip Market Players Analysis:

• Qualcomm
• Intel Corporation
• Broadcom Inc.
• Samsung Electronics Co., Ltd.
• NVIDIA Corporation
• Advanced Micro Devices, Inc.
• MediaTek Inc.
• Texas Instruments Incorporated
• Apple Inc.
• NXP Semiconductors N.V.
• STMicroelectronics N.V.
• Micron Technology, Inc.

Key Industry Developments:

In April 2024, An Aquila family of systems-on-modules (SOMs) has been introduced by Swiss embedded systems specialist Toradex. It supports workloads related to edge artificial intelligence (edge AI) and machine learning, as well as high-performance real-time computing.

System On Chip Market Segmentation Analysis:

By Type:

• Digital SoCs
• mixed-signal SoCs
• analog SoCsl

By Application:

• Smartphones and tablets
• automotive electronics
• consumer electronics
• industrial automation
• healthcare devices
• others

By End user

• Consumer electronics
• Automotive
• Healthcare
• Industrial
• aerospace and defense
• others

By Region

• North America (U.S., Canada, Mexico)
• Europe (Germany, France, UK, Italy, Spain, Russia, Rest of Europe)
• Asia-Pacific (China, India, Japan, ASEAN, Rest of Asia-Pacific)
• LAMEA (Latin America, Middle East, Africa)

The report also helps in understanding Global System On Chip Market dynamics, structure by analyzing the market segments, and project the Global System On Chip Market size. Clear representation of competitive analysis of key players by type, price, financial position, product portfolio, growth strategies, and regional presence in the Global System On Chip Market make the report investor’s guide.

Global System On Chip Market Segmentation Insights:

The market is divided into segments based on By Type, By End user, By Application.

By Type

Based on the Type of the market is segmented into Digital SoCs, mixed-signal SoCs, and analog SoCs.

Digital System-on-Chip (SoC) is the largest sector in the global System-on-Chip (SoC) market. Thanks to its broad usage and technological improvements, it continues to dominate the industry. Digital SoCs are integrated circuits that incorporate memory and processors among other digital components onto a single chip. Their ability to process data at a high speed, enhance computing capabilities, and manage power effectively makes them very desirable across a range of industries. Because they are essential to the operation of smartphones, tablets, and other consumer electronics, digital SoCs have become quite popular. The need for digital SoCs is only going to increase as these gadgets become more and more necessary in our everyday lives. Furthermore, the demand for strong and effective digital SoCs has been further spurred by the quick developments in augmented reality, mobile computing, and artificial intelligence.

The market's fastest-growing sector is mixed-signal SoCs, despite the fact that the digital SoC segment is the largest. Mixed-signal SoCs allow for the seamless combination of digital processing and analog functions including data conversion, amplification, and filtering by combining both digital and analog components on a single chip. Numerous industries, including wireless communication, car electronics, and Internet of Things (IoT) devices, find considerable use for these SoCs.

By Application

Based on the Application of the market is segmented into Smartphones and tablets, automotive electronics, consumer electronics, industrial automation, healthcare devices, and others.

Smartphones and tablets make up the largest part of the global System-on-Chip (SoC) market among the many applications. The need for sophisticated SoCs that can provide high-performance computation, power efficiency, & connectivity has increased due to the widespread use of these devices. In order to provide seamless user experiences and improved functionality, SoCs in smartphones and tablets combine many components, such as CPUs, graphics units, memory, including wireless communication components, onto a single chip. The exponential rise in mobile device usage is driving the smartphone and tablet market. More and more people around the world are depending on smartphones for work, entertainment, and communication, which is driving up demand for increasingly potent and feature-rich smartphones.

The healthcare devices segment has the potential to be the fastest expanding market. The healthcare sector is undergoing a change thanks to the use of System-on-a-Chip (SoC) technology in wearable health trackers, medical implants, and remote patient monitoring systems. SoCs provide connectivity, data processing, and real-time monitoring, enabling medical practitioners to provide individualized, remote patient care. Several factors drive the healthcare devices market. First off, there is a growing need for wearable health gadgets that can check vital signs, monitor activity levels, and offer health insights due to the increased emphasis on preventative healthcare and the aging population.

Regional Snapshots:

By region, Insights into the markets in North America, Europe, Asia-Pacific, and the rest of the world are provided by the study. North America has an important share of the market and fosters advancements in technology in a wide range of sectors. North America is the leader in SoC improvements thanks to its large concentration of top semiconductor businesses and vibrant R&D community. For example, Silicon Valley, a region in California, is well known for having a high concentration of startups and tech behemoths that are propelling the SoC industry. Companies like Qualcomm, NVIDIA, and Intel are at the forefront of cutting-edge semiconductor design and development in the region. These market leaders consistently push the limits of SoC capabilities by launching potent processors, accelerators for artificial intelligence, and networking solutions that influence the entire world market.

The Asia Pacific region is rapidly emerging as the fastest-growing region in the SoC economic due to its vast market potential and thriving semiconductor sector. China, South Korea, Taiwan, and Japan are leading countries in this expansion; they are developing technology and meeting the increasing demand for consumer, industrial, and automotive automation electronics. China's smartphone sector is growing, and the government's efforts to boost local semiconductor fabrication have led to a particularly strong rise in the SoC market. Prominent firms in the area producing SoCs for smartphones and other smart devices are Huawei's HiSilicon, MediaTek, and Unisoc.

System On Chip Market Report is also available for below Regions and Country Please Ask for that

North America

• U.S.
• Canada

Europe

• Switzerland
• Belgium
• Germany
• France
• U.K.
• Italy
• Spain
• Sweden
• Netherland
• Turkey
• Rest of Europe

Asia-Pacific

• India
• Australia
• Philippines
• Singapore
• South Korea
• Japan
• China
• Malaysia
• Thailand
• Indonesia
• Rest Of APAC

Latin America

• Mexico
• Argentina
• Peru
• Colombia
• Brazil
• Rest of South America

Middle East and Africa

• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest Of MEA

Points Covered in the Report:

• The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.
• The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 12 years data history and forecast.
• The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
• Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
• The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Reasons to Purchase:

• To gain insightful analyses of the System On Chip market and have comprehensive understanding of the global market and its commercial landscape.
• Assess the production processes, major issues, and solutions to mitigate the development risk.
• To understand the most affecting driving and restraining forces in the market and its impact in the global market.
• Learn about the System On Chip market strategies that are being adopted by leading respective organizations.
• To understand the future outlook and prospects for the System On Chip market. Besides the standard structure reports, we also provide custom research according to specific requirements.
• Research Scope of System On Chip Market:
• Historic year: 2018-2022
• Base year: 2023
• Forecast: 2024 to 2031
• Representation of Market revenue in USD Million

System On Chip Market Trends: Market key trends which include Increased Competition and Continuous Innovations Trends: