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#How have key drivers contributed to the rapid growth of the system on chip market?
The increasing adoption of smartphones is expected to propel the growth of the system-on-chip market going forward. Smartphones refer to handheld electronic devices that combine the functionalities of a mobile phone with those of a computer, typically offering internet access, communication features, and a wide range of applications. The increasing adoption of smartphones is due to their versatility, providing access to communication, information, entertainment, and productivity tools in a compact, portable device. System on chip (SoC) integrates multiple electronic components, including processor, memory, and peripherals, onto a single chip, optimizing smartphone performance and power efficiency. For instance, in April 2022, according to the Department of Telecommunications under the Vietnam Ministry of Information and Communications, a Vietnam-based regulatory agency, Vietnam recorded 91.3 million smartphone subscribers in 2021, an increase of over 2 million at the end of March 2022, resulting in a total of 93.5 million subscribers, equivalent to 73.5% of the nation’s adult population. Therefore, the increasing adoption of smartphones is driving the growth of the system-on-chip market.
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How has the system on chip market size evolved, and what are the latest forecasts for its expansion?
The system on chip market size has grown strongly in recent years. It will grow from $152.46 billion in 2024 to $166.36 billion in 2025 at a compound annual growth rate (CAGR) of 9.1%. The growth in the historic period can be attributed to advancements in semiconductor technology, mobile computing revolution, Internet of Things (IoT) boom, rise of wearable technology, and automotive electronics evolution.
The system on chip market size is expected to see strong growth in the next few years. It will grow to $232.71 billion in 2029 at a compound annual growth rate (CAGR) of 8.8%. The growth in the forecast period can be attributed to 5g connectivity, edge computing expansion, artificial intelligence at the edge, autonomous vehicles, rise of augmented reality (AR) and virtual reality (VR). Major trends in the forecast period include integration of heterogeneous cores, focus on security, customization and configurability, advancements in packaging technologies, and rise of domain-specific architectures.
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Which major companies dominate the system on chip market?
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
What trends will shape the future of the system infrastructure software market?
Major companies operating in the system-on-chip market are focusing on developing technologically advanced solutions, such as systems foundry designed for the AI to address several industry demands. The Systems Foundry Designed for AI refers to a specialized platform built to optimize the development and deployment of AI systems through tailored tools and infrastructure. For instance, in February 2024, according to Intel, a US-based technology company, it launched the world’s first systems foundry designed for the AI era, marking a significant advancement in semiconductor manufacturing. Announced at the Intel Foundry Direct Connect event, this initiative aims to meet the rising demand for AI-driven chip designs by offering a comprehensive approach that combines chip design, testing, and manufacturing services. Key features include the introduction of 14A process technology, partnerships with major companies like Microsoft and Arm to enhance design flows, and advanced packaging solutions such as the embedded multi-die interconnect bridge (EMIB) technology.
Which region dominates the system on chip market, and what factors contribute to its leadership?
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.
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Which major segments of the system on chip market are experiencing the fastest growth?
The system on chip market covered in this report is segmented –
1) By Type: Digital System On Chips, Mixed-Signal System On Chips, Analog System On Chips
2) By Application: Home Appliances, Portable Electronic Devices, Advanced Driver Assistance Systems, Medical Devices, Radio-Frequency Devices, Power-Electronic Devices, Wired And Wireless Communication Devices, Wearable Devices, Other Applications
3) By End-Use Industry: Consumer Electronics, Automotive And Transportation, Information Technology (IT) And Telecommunication, Aerospace And Defense, Healthcare, Power And Utility, Other End Use Industries
Subsegments:
1) By Digital System On Chips: Microprocessors (MPUs), Digital Signal Processors (DSPs), Field Programmable Gate Arrays (FPGAs), Application-Specific Integrated Circuits (ASICs), System Control Units (SCUs)
2) By Mixed-Signal System On Chips: Analog-To-Digital Converters (ADC), Digital-To-Analog Converters (DAC), Radio Frequency (RF) Transceivers, Power Management Integrated Circuits (PMIC), Signal Processors With Both Analog And Digital Functionalities
3) By Analog System On Chips (ASoC): Amplifiers, Voltage Regulators, Power Management ICs (PMIC), Radio Frequency (RF) Systems, Sensors (Temperature, Pressure, Motion Sensors)
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What defines the structure and scope of the system on chip market?
System on Chip (SoC) refers to an integrated circuit that integrates various computer or electronic system components onto a single chip. It is widely used in various electronic devices with advantages such as reduced power consumption, smaller form factors, lower cost, and improved performance compared to systems built from discrete components.
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