System on a chip (SoC) refers to integrating all the necessary electronic circuits required for a functioning system into a single microchip. SoCs are designed to perform digital, analog, mixed-signal, and often radio frequency functions and are widely used in smartphones, wearables, smart home devices, and other internet connected devices. Integration of SoCs has allowed manufacturers to reduce device size and cost while improving functionality and performance. Advancements in artificial intelligence (AI) and Internet of Things (IoT) have created a surge in demand for powerful, yet power efficient SoCs across various industries. Growing popularity of AI-enabled smartphones, smart home automation systems, wearable devices, and smart appliances are propelling SoC manufacturers to focus on incorporating powerful AI and machine learning capabilities into their chip designs. 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 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing adoption of artificial intelligence and Internet of Things enabled devices is expected to drive the system on a chip (SoC) market over the forecast period. SoCs play a crucial role in powering modern connected devices by integrating various functions like processing, graphics, wireless connectivity, security, and more into a single chip. This allows device manufacturers to reduce chip count, board space, power consumption, and cost by replacing multiple chips with a single highly integrated SoC. The rapidly increasing number of AI and IoT connected products across industries are creating significant demand for advanced System on Chips with more processing power and specialized features to support new-age technologies like artificial intelligence, machine learning, computer vision, natural language processing, and edge analytics. For instance, adoption of AI across industries has grown multi-fold over last couple of years with wide applications in image and speech recognition, predictive analytics, chatbots, and other. This rapid adoption of AI is encouraging SoC vendors to design specialized AI SoCs or integrate AI capabilities into mainstream SoCs. Similarly, projected IoT connections are expected to grow beyond 55 billion globally by 2025. All these interconnected devices require optimized, highly integrated SoCs to efficiently handle compute-intensive tasks while consuming minimum power. Therefore, the growing penetration of AI and IoT technologies are expected to open new applications for SoCs driving market growth over forecast period. However, the report does not cover any information on the
Segment Analysis
The system on a chip (SoC) market is dominated by mobile/wireless SoC subsegment. Mobile/wireless SoC holds more than 70% share of the overall SoC market as majority of consumer electronics products like smartphones, tablets, wearables, etc. use systems-on-a-chip to provide advanced functionality with a compact form factor. The mobile/wireless SoC dominates due to high penetration of smartphones and feature phones across the globe.
PEST Analysis
Political: The government support for research & development of advanced SoCs in countries like US, China, South Korea, Taiwan, etc. have positively impacted the market growth. Economic: Growing demand for consumer electronics products have boosted the demand for more powerful yet cost-effective SoCs. Social: Increasing Internet penetration and usage of mobile apps & services have increased need for high-performance yet energy-efficient SoCs. Technological: Continuous innovation in process technologies to develop FinFET and 3D vertical transistors based advanced SoCs have facilitated development of powerful yet compact chips.
Key Takeaways
The Global System On A Chip (SoC) Market Size is expected to witness high growth at a CAGR of 12% during the forecast period of 2023 to 2030.
Regional analysis: Asia Pacific region dominated SoC market with over 50% share in 2024 due to presence of key Foundries in countries such as Taiwan, South Korea & China along with strong consumer electronics industry. The region is expected to continue to lead the market driven by high demand from China, India & Southeast Asian countries.
Key players: Key players operating in the system on a chip (SoC) market are Honor Technology, Inc., Vesta Healthcare, HomeHero, Inc., Seniorlink, Inc., GreatCall, Inc., Cariloop, Inc., Room2Care, Ltd., UnaliWear, Inc., Care.com, Inc. ianacare.com, Mable, Homage, Ouihelp, The Helper Bees, Elder and CareLinx, Inc. Leading players are focusing on developing advanced SoCs with higher performance per watt targeting applications like AI, IoT, automotive, etc. to gain competitive edge.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
