The global System on a Chip (SoC) Market is estimated to be valued at US$ 164.45 Bn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
A System on a Chip (SoC) is an integrated circuit that integrates all or most components of a computer or other electronic systems on a single chip. It typically includes a central processing unit (CPU), memory, input/output ports and secondary storage all on a single chip substrate. SoC’s simplifies design, reduces costs and consumes less power compared to general-purpose processors commonly found in personal computers.
Market key trends:
The growing demand for portable consumer devices such as smartphones, tablets and wearables is driving the SoC market growth. The proliferation of IoT devices further propels the need for low power and high performance SoCs. Growing investments in 5G network infrastructure by telecom players also presents an opportunity for SoC providers. However, increasing complexities in designing SoCs for advanced applications and the high cost associated with fabrication of semiconductors using smaller process technology act as obstacles to the market growth.
SWOT Analysis
Strength: System on a Chip integrates all essential components of a computer or other electronic systems into a single integrated circuit. This improves performance and reduces costs.
Weakness: Developing System on a Chip requires large upfront investments in R&D. This poses challenges for new and small players. Component integration can also reduce upgradability.
Opportunity: Growing demand for IoT devices and connected vehicles is driving the need for low-cost and power-efficient electronics. This allows for new applications of SoC.
Threats: Commoditization of smartphones reduces profit margins. Demand may also shift to alternative technologies like application processors.
Key Takeaways
The global System on a Chip (SoC) market share is expected to witness high growth, exhibiting a CAGR of 8.0% over the forecast period, due to increasing demand for integrated and compact electronics. Miniaturization of devices is fuelling the need for System on Chips.
Regional analysis: Asia Pacific dominates the global SoC market and is expected to continue its dominance during the forecast period. This is attributed to presence of leading SoC manufacturers and growing demand for consumer electronics from countries like China, India, and Japan. North America and Europe are other major markets for SoCs driven by strong automotive and IoT industries.
Key players operating in the System on a Chip (SoC) market are Apple Inc., Huawei Technologies Co. Ltd., MediaTek Inc., Qualcomm Technologies Inc., Samsung Electronics CO. LTD., Intel Corporation, STMicroelectronics N.V., Toshiba Corporation, NXP Semiconductors N.V., and Broadcom Inc. Leading companies are focusing on developing application-specific SoCs and acquiring smaller players to enhance their product portfolios
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
