PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1700131
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1700131
According to Stratistics MRC, the Global System On Chip (SoC) Market is accounted for $140.82 billion in 2025 and is expected to reach $210.38 billion by 2032 growing at a CAGR of 10.5% during the forecast period. A System on Chip (SoC) is an integrated circuit that combines all essential components of a computer or electronic system into a single chip. SoCs are widely used in smartphones, tablets, IoT devices, and embedded systems due to their compact size, power efficiency, and high performance. By integrating multiple functions on a single chip, SoCs reduce power consumption, improve performance, and lower manufacturing costs, making them ideal for modern electronic devices.
According to Ericsson's latest mobility report, 5G mobile subscriptions are expected to surpass 1.5 billion globally by the end of 2023, creating substantial demand for advanced SoC solutions that can support high-speed data processing and efficient power management.
Rising demand for smart devices
As consumers increasingly adopt smartphones, tablets, wearables, smart home devices, and IoT gadgets, the need for compact, power-efficient, and high-performance chips grows. SoCs integrate multiple functions, reducing device size and power consumption while enhancing processing speed and connectivity. The expansion of 5G, AI-driven applications, and edge computing further fuels demand for advanced SoCs. This trend drives continuous innovation and investment in semiconductor technology, propelling market expansion.
Complexity in fabrication
The complexity in SoC fabrication arises from miniaturization, integration of multiple components, and advanced semiconductor processes. Designing and manufacturing SoCs require precise lithography, high-end fabrication equipment, and extensive testing, making production costly and time-consuming. As chips become smaller and more powerful, ensuring thermal management, power efficiency, and signal integrity adds further challenges. Additionally, dependence on limited foundries creates supply chain constraints, further impacting SoC availability and market expansion.
Growth in 5G & edge computing
5G networks require advanced SoCs to handle massive data transfers, enabling seamless connectivity in smartphones, IoT devices, and autonomous systems. Meanwhile, Edge Computing reduces reliance on cloud processing by bringing computation closer to data sources, requiring specialized SoCs for AI processing, real-time analytics, and security. As industries adopt smart infrastructure, autonomous vehicles, and industrial automation, demand for high-performance SoCs continues to rise, fueling market growth and innovation.
Growing risks of hardware hacking and vulnerabilities
SoCs integrate multiple functions, making them attractive targets for cyberattacks, data breaches, and hardware Trojans. Security flaws in SoCs can lead to intellectual property theft, system malfunctions, and financial losses. As cyber threats evolve, manufacturers must invest in secure chip designs, encryption, and hardware-based security, increasing production costs. Concerns over supply chain security and regulatory compliance further slow SoC adoption, impacting market expansion.
The covid-19 pandemic significantly impacted the system on chip (SoC) market, causing supply chain disruptions, semiconductor shortages, and delayed production due to factory shutdowns. Demand for SoCs surged as remote work, online education, and digital transformation increased reliance on smartphones, laptops, and IoT devices. Post-pandemic recovery led to investments in semiconductor manufacturing, boosting SoC production and innovation, while chip shortages highlighted the need for supply chain resilience.
The digital SoC segment is expected to be the largest during the forecast period
The digital SoC segment is expected to account for the largest market share during the forecast period. A digital system on chip (SoC) integrates multiple digital components, including CPU, GPU, memory, and input/output interfaces, into a single chip. It is designed for high-speed data processing, low power consumption, and compact size, making it ideal for smartphones, IoT devices, automotive electronics, and AI applications. With increasing demand for 5G, AI, and edge computing, digital SoCs continue to evolve, driving innovation in consumer electronics and industrial automation.
The automotive segment is expected to have the highest CAGR during the forecast period
Over the forecast period, the automotive segment is predicted to witness the highest growth rate. In automotive applications, System on Chip (SoC) plays a crucial role in Advanced Driver Assistance Systems (ADAS), infotainment, autonomous driving, and vehicle connectivity. SoCs integrate AI, sensor fusion, real-time processing, and wireless communication to enhance vehicle safety, performance, and user experience. With the rise of smart mobility and connected cars, automotive SoCs are evolving to support 5G, AI-driven decision-making, and energy-efficient computing, shaping the future of intelligent transportation.
During the forecast period, the Asia Pacific region is expected to hold the largest market share, due to increasing demand for smartphones, IoT devices, automotive electronics, and 5G technology. Countries like China, Taiwan, South Korea, and Japan dominate the market, housing major semiconductor manufacturers such as TSMC, Samsung, and MediaTek. Government initiatives, rising investments in AI, IoT, and smart infrastructure, and strong consumer electronics production drive market expansion.
Over the forecast period, the North America region is anticipated to exhibit the highest CAGR, driven by advancements in AI, 5G, autonomous vehicles, and IoT technologies. The region houses major semiconductor players like Qualcomm, Intel, AMD, and NVIDIA, contributing to innovation and high-performance chip development. Strong demand for smartphones, automotive electronics, and data centers fuels market growth. Government initiatives supporting domestic semiconductor manufacturing, such as the CHIPS Act, boost local production.
Key players in the market
Some of the key players in System On Chip (SoC) Market include Qualcomm Technologies Inc., Apple Inc., Intel Corporation, NXP Semiconductors N.V., Broadcom Inc., STMicroelectronics N.V., Samsung Electronics Co., Ltd., Micron Technology, Inc., Taiwan Semiconductor Manufacturing Company Limited (TSMC), Infineon Technologies AG, NVIDIA Corporation, Renesas Electronics Corporation, Advanced Micro Devices, Inc. (AMD), Sony Corporation, MediaTek Inc., Marvell Technology Group Ltd., Texas Instruments Incorporated, HiSilicon Technologies Co., Ltd., Xilinx, Inc. and Arm Limited.
In February, 2025, Apple unveiled its first custom-designed modem chip, the C1, marking a strategic shift away from reliance on external suppliers. Debuting in the iPhone 16e, the C1 subsystem enhances battery life and integrates seamlessly with Apple's A18 processor. It also features custom GPS systems and satellite connectivity, though it currently lacks support for millimeter-wave 5G networks.
In October 2024, Qualcomm introduced the Snapdragon 8 Elite, a 3nm mobile processor designed to enhance performance, AI capabilities, and battery efficiency in Android smartphones. The chip features Qualcomm's new Oryon CPU design, achieving speeds up to 4.32 GHz-a 45% improvement over its predecessor.
Note: Tables for North America, Europe, APAC, South America, and Middle East & Africa Regions are also represented in the same manner as above.