System on Chip Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The System-on-Chip (SoC) market is slated to grow at a fast pace, from $137.71 billion in 2024 to $249.87 billion in 2032. This translates into a CAGR of 7.7% during the forecast period. The rising demand for integrated solutions in the fields of consumer electronics, the automobile and the Internet of Things (IoT) is responsible for this trend. In the light of technological developments, SoCs have become a necessity for enhancing performance and reducing power consumption, which is essential in today’s energy-conscious environment. The proliferation of smart devices, the development of 5G technology and the ongoing trend towards miniaturization are other important factors driving the growth of the SoC market. The leading players in the SoC market, such as Qualcomm, Intel and Nvidia, are putting a great deal of effort into R&D in order to improve and expand their product offerings. Strategic alliances and collaborations are also common, as companies seek to exploit complementary strengths and enhance their competitive edge. Several recent collaborations between chip-makers and software companies have focused on the development of SoCs tailored to specific applications, thereby further boosting market growth.

Regional Market Size

Regional Deep Dive

System on a chip (SoC) market is growing rapidly across the globe, mainly due to the growing demand for integrated solutions in the areas of consumer electronics, automobiles and IoT. Every region has its own characteristics influenced by technological advancements, regulations and the economic situation. North America is leading in terms of innovation and R&D, Europe is a regulatory-driven market, while Asia-Pacific is a manufacturing powerhouse with a rapidly growing consumer base. The Middle East and Africa are showing emerging opportunities due to the digital transformation, while Latin America is slowly adopting SoCs to enable smart and connected solutions.

Europe

• The European Union is implementing the Digital Compass initiative, which aims to increase the region's digital capabilities, including the development of SoCs for various applications, thereby fostering innovation and competitiveness.
• Companies like STMicroelectronics and NXP Semiconductors are focusing on sustainable SoC designs, aligning with the EU's Green Deal, which emphasizes environmental responsibility in technology development.

Asia Pacific

• China's push for self-sufficiency in semiconductor production has led to significant investments in SoC development, with companies like Huawei and MediaTek leading the charge in creating competitive products.
• The rise of electric vehicles in countries like Japan and South Korea is driving demand for specialized SoCs that can handle complex automotive applications, leading to collaborations between automotive manufacturers and semiconductor firms.

Latin America

• Brazil is implementing policies to encourage local semiconductor manufacturing, which is expected to boost the SoC market by reducing import dependency and fostering local innovation.
• The increasing penetration of smartphones and IoT devices in Latin America is driving demand for cost-effective SoC solutions, prompting companies to tailor their products to meet the needs of this emerging market.

North America

• The U.S. government has launched initiatives to bolster semiconductor manufacturing, including the CHIPS Act, which aims to enhance domestic production of SoCs and reduce reliance on foreign supply chains.
• Major companies like Qualcomm and Intel are investing heavily in R&D for advanced SoC technologies, particularly in 5G and AI applications, which are expected to drive market growth and innovation.

Middle East And Africa

• Countries like the UAE are investing in smart city projects that require advanced SoC technologies, creating a growing market for integrated solutions in urban infrastructure.
• The African continent is seeing a rise in mobile technology adoption, with local startups developing SoC solutions tailored to meet the unique needs of the region, fostering innovation and entrepreneurship.

Did You Know?

“Did you know that the first SoC was developed in the 1970s, but it wasn't until the 2000s that they became widely used in consumer electronics, revolutionizing the industry?” — IEEE Spectrum

Segmental Market Size

The System on a Chip (SoC) sector is an important part of the overall market for semiconductors. It is mainly the mobile phone, IoT applications and the automobile that is driving this development. The SoC sector is currently growing at a fast pace. The increasing demand for integrated solutions with higher performance and lower power consumption is driving this growth. The growing demand for smart devices and the need to optimize manufacturing processes in various industries are the main driving forces. The SoC technology is currently being used in a mature way. The most advanced applications are being developed by companies such as Qualcomm and Apple. The SoC technology is also used in other regions, mainly in East Asia. The strong manufacturing industry in China and South Korea is a driving force for this development. The main applications are mobile phones, wearables and automobiles, where SoCs enable functions such as artificial intelligence and communication. The trend towards 5G and the green agenda are driving this development. The development of artificial intelligence and machine learning is also shaping the SoC design and functionality.

Future Outlook

The System on a Chip (SoC) market is expected to increase from $137.71 billion to $249.87 billion by 2032, a CAGR of 7.7%. This growth is primarily due to the growing demand for advanced computing solutions in various industries, such as consumer electronics, automobiles, and industry. As the IoT continues to grow, SoCs are expected to be used in smart devices to enhance the performance and efficiency of smart devices, which will further increase their adoption rates. The share of SoCs in new electronic products will exceed 75% by 2032, and they will become an important force in digital transformation. 5G and artificial intelligence are also expected to drive the SoC market. These two technologies are expected to create powerful and energy-efficient chips that can meet the needs of connected devices. Also, government policies supporting smart cities and green technology are expected to increase investment in SoC development. And with the emphasis on improving performance and reducing power consumption, the SoC market will see a large number of SoCs designed for specific applications.