Market Size of System On Chip (SoC) Industry
Study Period | 2019 - 2029 |
Market Size (2024) | USD 172.65 Billion |
Market Size (2029) | USD 253.80 Billion |
CAGR (2024 - 2029) | 8.01 % |
Fastest Growing Market | Asia Pacific |
Largest Market | Asia Pacific |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
System On Chip Market Analysis
The System On Chip Market size is estimated at USD 172.65 billion in 2024, and is expected to reach USD 253.80 billion by 2029, growing at a CAGR of 8.01% during the forecast period (2024-2029).
System-on-chip (SoC) technology has become an integral part of modern technology, revolutionizing the way electronic devices are designed and manufactured. Basically, a system-on-a-chip, or SoC, integrates all the components of a computer onto a single chip, including CPU, memory, input and output ports, and secondary storage.
- Rapidly evolving technologies, including 5G and 6G, software-packed vehicles, non-terrestrial networks (NTN), and digital healthcare, endless imagination, and invention across industries have been significantly paving the way for SoC to enter the consumer market rapidly. SoCs have long been incorporated into electronic devices such as tablets and mobile phones because they are compact and power-efficient.
- Today, SoCs are increasingly being used in the Internet of Things devices and other devices. The rising demand for smart and power-efficient devices by consumers and exponential adoptions of IoT by various industry verticals are expected to be driving factors for the players in the semiconductor market, thus boosting the growth of the SoC market.
- Another important trend in the electronics industry is the increase of the Internet of Things (IoT). With the rise in demand for smart devices, IoT has become an essential part of everyday life. Thus, businesses are primarily using this technology to develop new products and services. SoCs will also play a pivotal role in the advancement of flexible electronics, enabling new form factors for wearable and implantable devices.
- As technology continues to evolve, several industries are adopting automation and digitization, thereby bringing new opportunities to the key players for entering new markets but with high initial research and development costs associated with the system on a chip (SoC). Owing to the increasing customization of SoC for various products, the players need to focus on various R&D projects simultaneously, increasing their project costs. Such factors are expected to hamper the market growth over the forecast period.
- While COVID-19 changed consumer spending patterns by increasing the demand for consumer electronics, the automotive industry’s move toward electric vehicles is also boosting the need for chips. For instance, a typical gasoline engine car uses about 50 to 150 semiconductor chips, but an electric vehicle can use up to 3,000 semiconductor chips. The growing emphasis on electric vehicle manufacturing is certain to consume vastly more semiconductor chips in the future, thus driving the role of SoC in the global market.
System On Chip Industry Segmentation
System-on-a-chip refers to a type of integrated circuit (IC) design that combines many or all high-level function elements of an electronic device onto a single chip instead of using separate components mounted to a motherboard, as is done in traditional electronics design. The components that an SoC generally looks to incorporate within itself include a central processing unit, input and output ports, internal memory, and analog input and output blocks, among other things.
The system-on-chip (SoC) market is segmented by type (analog, digital, and mixed), end-user industry (consumer electronics, communications, automotive, computing and data storage, industrial, and other end-user industries), and geography (North America, Europe, Asia-Pacific, and Rest of the World). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
By Type | |
Analog | |
Digital | |
Mixed |
By End-user Industry | |
Consumer Electronics | |
Communications | |
Automotive | |
Computing and Data Storage | |
Industrial | |
Other End-user Industries |
By Geography | |
North America | |
Europe | |
Asia-Pacific | |
Rest of the World |
System On Chip (SoC) Market Size Summary
The system-on-chip (SoC) market is poised for significant growth, driven by the increasing integration of SoC technology in various electronic devices. SoCs, which consolidate all components of a computer onto a single chip, are becoming essential in modern technology due to their compactness and power efficiency. The rapid advancement of technologies such as 5G, 6G, and the Internet of Things (IoT) is propelling the adoption of SoCs across consumer electronics, including smartphones, tablets, and wearables. The demand for smart, power-efficient devices is rising, fueled by the growing adoption of IoT across industries, which is expected to bolster the semiconductor market and, consequently, the SoC market. However, the high initial research and development costs associated with SoCs and the need for extensive customization may pose challenges to market growth.
The market landscape is characterized by a semi-consolidated structure with key players like Broadcom Inc., Intel Corporation, MediaTek Inc., Microchip Technology Inc., and NXP Semiconductors NV actively engaging in product launches, agreements, and acquisitions to expand their market presence. The Asia-Pacific region is anticipated to dominate the market, supported by its stronghold in global semiconductor production and favorable government policies. The increasing demand for technologically advanced devices and the proliferation of IoT-connected consumer devices are expected to drive the market further. Additionally, the automotive industry's shift towards electric vehicles is anticipated to significantly increase the demand for semiconductor chips, thereby enhancing the role of SoCs in the global market.
System On Chip (SoC) Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Buyers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitutes
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1.2.5 Intensity of Competitive Rivalry
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1.3 Industry Value Chain/Supply Chain Analysis
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1.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Analog
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2.1.2 Digital
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2.1.3 Mixed
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2.2 By End-user Industry
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2.2.1 Consumer Electronics
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2.2.2 Communications
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2.2.3 Automotive
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2.2.4 Computing and Data Storage
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2.2.5 Industrial
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2.2.6 Other End-user Industries
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2.3 By Geography
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2.3.1 North America
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2.3.2 Europe
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2.3.3 Asia-Pacific
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2.3.4 Rest of the World
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System On Chip (SoC) Market Size FAQs
How big is the System On Chip Market?
The System On Chip Market size is expected to reach USD 172.65 billion in 2024 and grow at a CAGR of 8.01% to reach USD 253.80 billion by 2029.
What is the current System On Chip Market size?
In 2024, the System On Chip Market size is expected to reach USD 172.65 billion.