PUBLISHER: The Business Research Company | PRODUCT CODE: 1503913
PUBLISHER: The Business Research Company | PRODUCT CODE: 1503913
System on chip (SoC) refers to an integrated circuit that consolidates various computer or electronic system components onto a single chip. It finds extensive use in a variety of electronic devices due to advantages such as reduced power consumption, smaller form factors, lower cost, and enhanced performance compared to systems built from separate components.
The primary types of system on chip include digital system on chips, mixed-signal system on chips, and analog system on chips. Digital system on chips integrate multiple digital functions such as processing, memory, and input/output interfaces onto a single chip. They are employed in applications such as home appliances, portable electronic devices, advanced driver assistance systems, medical devices, radio-frequency devices, power-electronic devices, wired and wireless communication devices, wearable devices, and others across industries such as consumer electronics, automotive and transportation, information technology (IT) and telecommunication, aerospace and defense, healthcare, power and utility, and more.
The system on chip research report is one of a series of new reports from The Business Research Company that provides system on chip market statistics, including the system on chip industry's global market size, regional shares, competitors with a system on chip market share, detailed system on chip market segments, market trends and opportunities, and any further data you may need to thrive in the system on chip industry. This system on chip market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The system on chip market size has grown strongly in recent years. It will grow from $140.34 billion in 2023 to $152.46 billion in 2024 at a compound annual growth rate (CAGR) of 8.6%. The growth in the historic period can be attributed to several factors, including advancements in semiconductor technology, the mobile computing revolution, the boom in Internet of Things (IoT), the rise of wearable technology, and the evolution of automotive electronics.
The system on chip market size is expected to see strong growth in the next few years. It will grow to $214.05 billion in 2028 at a compound annual growth rate (CAGR) of 8.9%. The growth in the forecast period can be attributed to several key factors, including 5G connectivity, expansion of edge computing, artificial intelligence at the edge, autonomous vehicles, and the increasing popularity of augmented reality (AR) and virtual reality (VR). Major trends in this period include the integration of heterogeneous cores, a heightened focus on security, emphasis on customization and configurability, advancements in packaging technologies, and the emergence of domain-specific architectures.
The system-on-chip market is expected to experience growth driven by the increasing adoption of smartphones. Smartphones, which combine mobile phone functionalities with computer capabilities, are gaining popularity due to their versatility, providing access to communication, information, entertainment, and productivity tools in a compact device. System on chip (SoC) technology integrates multiple electronic components such as processors, memory, and peripherals onto a single chip, enhancing smartphone performance and power efficiency. For example, in April 2022, the Department of Telecommunications in Vietnam reported 91.3 million smartphone subscribers in 2021, with an additional 2 million subscribers by March 2022, totaling 93.5 million subscribers, representing 73.5% of the nation's adult population. This surge in smartphone adoption is fueling the growth of the system-on-chip market.
Major players in the system-on-chip market are focusing on developing advanced artificial intelligence solutions to meet the increasing demand for high-performance computing and edge processing capabilities. These next-generation AI solutions leverage cutting-edge algorithms and methodologies to address complex problems and drive innovation across industries. For instance, in January 2021, Atlazo Inc., a US-based developer of artificial intelligence system-on-chip semiconductors, introduced the AZ-N1, a compact smart device tailored AI SoC. It features an energy-efficient Artificial Intelligence and Machine Learning processor (Axon ITM) for tasks such as audio processing, voice recognition, health tracking, and sensor applications. With low power consumption and integrated features such as battery charging, DC or DC regulators, and Bluetooth connectivity, the AZ-N1 excels in handling tasks such as audio and biometric processing and sensor signal interpretation.
In March 2021, Qualcomm Technologies Inc., a US-based semiconductor and telecommunications equipment company, acquired NUVIA for $1.4 billion. This acquisition enables Qualcomm Technologies to integrate advanced CPUs into various products, including smartphones, laptops, digital vehicle interfaces, advanced driver assistance systems, extended reality devices, and networking solutions. NUVIA, based in the US, specializes in semiconductor component development and system-on-chip (SoC) design.
Major companies operating in the system on chip market are Apple Inc., Samsung Electronics Co. Ltd., Huawei Technologies Co. Ltd., Sony Corporation, Taiwan Semiconductor Manufacturing Company Limited, Intel Corporation, Qualcomm, Broadcom Inc., Micron Technology Inc., NVIDIA Corporation, Toshiba Corporation, Advanced Micro Devices Inc., Texas Instruments Incorporated, MediaTek Inc., STMicroelectronics N.V., Infineon Technologies AG, NXP Semiconductors N.V., Renesas Electronics Corporation, onsemi, Marvell Technology Group Ltd., Arm Limited
Asia-Pacific was the largest region in the system on chip market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the system on chip market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the system on chip market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The system on chip market consists of revenues earned by entities by providing services such as multimedia processing, sensor interfaces, security features, power management, networking, peripheral control, real-time processing, and customizable hardware accelerators. The market value includes the value of related goods sold by the service provider or included within the service offering. The system on chip market also includes sales of central processing units (CPU), and graphics processing units (GPU). Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
System On Chip Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on system on chip market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for system on chip ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The system on chip market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of COVID-19 on supply chains and consumption patterns.