System on Chip Market

Compact SoC design, rising IoT use, and the rising need for smart, power-efficient electronics will boost the market growth.

I/O interfaces, memory, and various microprocessor subsystems make up a system on a chip. The size is decreased since all these parts are coupled internally and put on the same chip. Additionally, the System on Chip offers greater architectural security at the hardware and firmware levels. A smaller-sized version of the updated System on Chip s, which provide twice as much processing power as its predecessors, is now being designed. In turn, this propels the System on the Chip market.

Due to widespread Wi-Fi access, rising demand for smart wearables, technical advancements in wireless network technologies, and greater acceptance of cloud platforms, the System on Chip market share is quickly adopting the Internet of Things (IoT). IoT usage has expanded due to the creation of smart cities and smart transportation systems. This, in turn, fuels the System on Chip market's expansion.

Customers choose electronics with improved battery life and efficient, low-power usage. As a result, consumers demand more from the technology in terms of improved performance and power efficiency. Tasks may be completed more quickly because of the System on Chip s memory and fast CPU. Due to the constantly growing demand, new Systems on Chip with up to 10 cores are also hitting the market. A system on Chip with more cores is anticipated to be implemented shortly to meet customer demand.

The market for System on Chips is anticipated to increase due to the desire for intelligent and power-efficient electronic products. There is a large market for scalable and small I.C.s worldwide. In the electronic industry, characteristics of compact and scalable I.C.s, such as small size, lightweight, lower cost, low power consumption, high reliability, and ease of replacement, are crucial.

As a result, applications using I.C.s are always in demand, which is predicted to present profitable prospects for the major players in the worldwide System on Chip (SoC) market. I.C.s are also used in a wide range of applications, including those for cars, computers, televisions, and portable electronics like laptops, cell phones, cameras, play stations, and more. For instance, Samsung Electronics and Marvell teamed together to create a revolutionary System on Chip to improve 5G network performance in March 2021. By Q2 2021, Tier One operators should be using the recently announced chip used in Samsung's Massive MIMO.

The increasing proliferation of Internet of Things (IoT) devices is a primary driver of the Global System On Chip (SoC) Market Industry. As more devices become interconnected, the need for efficient, compact, and cost-effective SoCs rises. In 2024, the market is projected to reach 137.7 USD Million, reflecting the growing integration of SoCs in smart home devices, wearables, and industrial applications. This trend suggests that manufacturers are focusing on developing SoCs that can handle multiple functions while minimizing power consumption, thereby enhancing device performance and user experience.

The automotive sector's shift towards electrification and automation is a significant driver of the Global System On Chip (SoC) Market Industry. As vehicles become more sophisticated, the demand for advanced SoCs that can support features like autonomous driving, infotainment systems, and vehicle-to-everything (V2X) communication increases. This trend is expected to contribute to the market's growth, with projections suggesting a substantial increase in revenue as automakers invest in cutting-edge technologies. The integration of SoCs in automotive applications not only enhances vehicle performance but also improves safety and user experience, making it a critical area of focus for manufacturers.

The growing emphasis on energy efficiency across various sectors is influencing the Global System On Chip (SoC) Market Industry. As consumers and businesses alike seek to reduce energy consumption and lower costs, SoCs designed for energy efficiency are becoming more desirable. This trend is particularly relevant in the context of mobile devices and IoT applications, where battery life is a critical factor. Manufacturers are responding by developing SoCs that optimize power usage without compromising performance. This focus on energy efficiency is likely to drive market growth, as stakeholders recognize the long-term benefits of sustainable technology solutions.

Technological advancements in semiconductor manufacturing processes significantly influence the Global System On Chip (SoC) Market Industry. Innovations such as FinFET technology and 3D stacking are enabling the production of smaller, more powerful chips. These advancements allow for increased transistor density, which enhances performance while reducing power consumption. As a result, the market is expected to grow substantially, with projections indicating a rise to 312.1 USD Million by 2035. This growth underscores the importance of continuous research and development in semiconductor technologies to meet the evolving demands of various applications, including mobile devices and automotive systems.

The integration of artificial intelligence (AI) and machine learning (ML) capabilities into consumer electronics is driving the Global System On Chip (SoC) Market Industry. SoCs equipped with AI and ML functionalities enable devices to perform complex tasks, such as image recognition and natural language processing, more efficiently. This trend is particularly evident in smartphones and smart home devices, where enhanced user experiences are paramount. The market's growth trajectory, with a projected CAGR of 7.72% from 2025 to 2035, indicates that manufacturers are increasingly prioritizing AI-enabled SoCs to remain competitive in a rapidly evolving technological landscape.

By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. Asia Pacific System On Chip (SoC) market accounted for USD 48.70 billion in 2021 and is expected to exhibit a significant CAGR growth during the study period. Asia Pacific's system-on-chip market is set to pick up steam propelled by the growing demand for IoT-based consumer electronic products, such as smart T.V., wearables, and mobiles in countries like India and China. This results from rising consumer appliance demand, and rising consumer interest in electronic gadgets is expected to drive market growth.

Throughout the projection period, it is expected that the Asia Pacific region will account for a sizeable percentage of the global System on Chip market due to the increasing demand for System on Chip in the consumer electronics, I.T., and telecommunications industries. Systems on Chips are frequently used in electronic devices in the Region, including Bluetooth headsets, fitness bands, tablets, smartwatches, laptops, home appliances, and consumer electronics. The market is also benefiting from increased digitization, the Internet of Things (IoT) growth, analytics and server performance improvements, and ongoing investments in potent workstations and servers that employ 5G technologies.

Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the U.K., Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: System On Chip (SoC) Market SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

North America has the largest market share for systems on a chip. Large telecom and I.T. companies like Qualcomm and Apple are a couple of the reasons behind this. Modern electrical items are still in great demand in this area. This is further supported by the fact that IoT devices are gaining popularity, especially in North America. In North America, the industry is anticipated to grow rapidly. The United States and Canada are North America's two most populous countries.

This is due to the increasing usage of IoT integration with household appliances, which is predicted to gain popularity throughout the projected period.

With a revenue share of 22.2% in 2021, Europe is regarded as the Region with the most attractive market for systems on chips after the Asia Pacific. The existence of highly industrialized nations like Germany, the U.K., France, Italy, and Belgium is largely responsible for the market expansion in this area. Government programs that promote the development of these businesses are also a major factor in the expansion of the market. Additionally, the U.K. System On Chip (SoC) market grew the quickest in the European area, while the System On Chip (SoC) market in Germany had the biggest market share.

Major market players are investing a lot of money in R&D to expand their product portfolios, which will spur further market growth for cervical fusion. With significant industry changes, including new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their global presence. To grow and remain in a market that is becoming more and more competitive, System On Chip (SoC) industry competitors must provide affordable products.

Manufacturing locally to cut operational costs is one of the main business tactics used by the System On Chip (SoC) industry to serve customers and increase the market sector. The System On Chip (SoC) industry has recently given medicine some of the most important advantages. The System On Chip (SoC) market major players such as Intel Corporation Qualcomm Incorporated USA, Samsung Electronics Ltd Japan, NXP Semiconductors N.V. Japan, Toshiba Corporation Japan, Broadcom Limited USA, STMicroelectronics N.V.

USA, Apple Inc the USA, MediaTek Inc the USA, and others are working on expanding the market demand by investing in research and development activities.

Qualcomm is a worldwide American company with its main office in San Diego, California. It was founded in Delaware. It produces software, chips, and services for wireless technology. It is the owner of patents that are essential to mobile communications for 5G, 4G, CDMA2000, TD-SCDMA, and WCDMA. The Snapdragon Ride Vision System, an Open and Scalable Platform for Automated Driving, was introduced by Qualcomm Technologies, Inc. in January 2022.

It is built on a four-nanometer (4nm) process technology System on Chip (SoC) designed for an optimized implementation of front and surrounding cameras for advanced driver assistance systems (ADAS) and automated driving (A.D.)

A Taiwanese fabless semiconductor manufacturer, MediaTek Inc., makes semiconductors for optical disc drives, navigation systems, high-definition television, portable mobile devices such as smartphones and tablet computers, consumer multimedia goods, and digital subscriber line services. The flagship System on Chip (SoC) dubbed Dimensity 1200 processor was released in April 2021 by MediaTek Inc., a prominent semiconductor firm. This chip included high-performance CPU technology, a camera, A.I. capabilities, gaming, and connection improvements.