“The System on Chip (SoC) market is projected to grow at a CAGR of 8.7% from 2024 to 2031. The market value is expected to reach XX USD by 2024 and YY USD by 2031.”
Asia-Pacific dominates the market, driven by the rapid adoption of IoT devices and increasing demand for smartphones. Key metrics include rising integration of AI in SoCs, growing demand for energy-efficient chips, and increasing investments in 5G technology.
Market Trend: Integration of AI capabilities in SoCs revolutionizes device performance and functionality
Integrating Artificial Intelligence (AI) capabilities into System on Chip (SoC) architectures is an important industry reshaping trend. This connection enables devices to do complicated activities more effectively, hence improving user experiences across several applications. For example, AI-powered SoCs in smartphones improve camera performance, battery life, and overall device intelligence. In the automotive industry, AI-integrated SoCs are critical for advanced driver assistance systems (ADAS) and autonomous driving capabilities.
The trend is also visible in IoT devices, where AI-enabled SoCs improve edge computing capabilities, resulting in faster and more efficient data processing. This integration is driving up demand for more advanced SoC designs, causing manufacturers to innovate and create chips with dedicated AI accelerators and neural processing units.
Market Driver: Increasing demand for energy-efficient and high-performance devices boosts SoC adoption
The increased demand for energy-efficient, high-performance devices is a major driver of the System on Chip business. By combining several components on a single chip, SoCs provide considerable benefits in terms of power consumption and performance. This integration lowers power loss and increases overall efficiency. In the mobile device market, where battery life is critical, SoCs have become essential. For example, Apple's A14 Bionic chip, which is used in the iPhone 12 series, provides up to 50% faster CPU and GPU performance than competitor smartphone chips while being energy efficient.
ARM-based SoCs are gaining popularity in the data centre business due to their high energy efficiency. Amazon's Graviton2 processors, which are based on the ARM architecture, offer up to 40% better pricing performance than equivalent x86-based instances for certain workloads.
Market Restraint: Complexity in SoC design and manufacturing processes poses challenges
The rising complexity of SoC design and manufacturing processes poses a substantial barrier to market expansion. As SoCs add more capabilities and advanced technologies, the design process gets more complex and time-consuming. This complexity frequently results in greater development costs and longer time-to-market for new products. According to our research analysis, designing a 7nm SoC could cost more than $300 million.
Furthermore, the manufacturing process for sophisticated SoCs necessitates significant expenditures in cutting-edge fabrication facilities. The capital investment for a cutting-edge semiconductor fab can exceed $20 billion, restricting the number of companies capable of creating advanced SoCs.
The consumer electronics segment dominates the System on Chip market, driven by the proliferation of smartphones and IoT devices.
The consumer electronics segment dominates the System on Chip market, owing to the increased usage of smartphones, tablets, and smart home devices. SoCs play an important role in these devices, providing great performance, energy efficiency, and small form factors. The smartphone business, in particular, has been a significant driver of SoC advances. For example, Qualcomm's Snapdragon line of SoCs powers more than 2 billion Android smartphones worldwide, demonstrating the segment's supremacy.
The proliferation of Internet of Things (IoT) devices has strengthened the consumer electronics market. According to our research analysis, the number of IoT devices will reach 41.6 billion by 2025, producing 79.4 zettabytes of data. This rise is generating demand for specialized SoCs that can handle a wide range of functions while consuming little power. Companies such as MediaTek and NXP Semiconductors are creating specific IoT SoCs to meet the growing demand.
In the wearable technology industry, SoCs enable the creation of more sophisticated gadgets with longer battery life. For example, Apple's S6 chip, included in the Apple Watch Series 6, provides up to 20% quicker performance than its predecessor while retaining the same 18-hour battery life. This highlights the continual advancement of SoC design for consumer electronics applications.
Asia-Pacific leads the System on Chip market, driven by a robust semiconductor industry and high consumer electronics demand.
The Asia-Pacific region dominates the System on Chip market, with the highest market share. This supremacy is due to the presence of large semiconductor manufacturers, a growing consumer electronics industry, and increased investment in new technologies.
China, Taiwan, and South Korea make significant contributions to the region's market leadership. Taiwan Semiconductor Manufacturing Company (TSMC), the world's biggest specialized independent semiconductor foundry, is a key player in the production of innovative SoCs for global technology companies.
The region's dominant position in the smartphone market greatly influences SoC demand. Asian businesses such as Samsung, Xiaomi, and Huawei are important players in the global smartphone market, driving mobile SoC innovation.
Recent investments in semiconductor manufacturing capabilities have helped to boost the region's position. For example, TSMC has announced intentions to invest $100 billion over three years to increase chip fabrication capacity, including advanced nodes for SoC production.
The automobile industry in Asia-Pacific is also boosting SoC demand, notably for electric vehicles and enhanced driver assistance systems. Companies such as BYD and NIO are boosting their investments in automotive SoCs to improve vehicle performance and functionality.
The System on Chip market is characterised by fierce rivalry among prominent companies, with an emphasis on technological innovation and strategic alliances. Leading firms are investing considerably in research and development to create more advanced and efficient SoC architectures. Apple, for example, has achieved success with its in-house built A-series and M-series CPUs, giving it a competitive advantage in the smartphone and personal computing sectors.
Qualcomm has a dominant position in the mobile SoC industry, with its Snapdragon series powering a sizable proportion of Android handsets. The company's recent acquisition of Nuvia for $1.4 billion is intended to boost its position in the high-performance computing industry.
With rising competition in the PC and data centre areas, Intel is focussing on expanding its SoC range. The 11th Generation Tiger Lake processors, which use the Xe graphics architecture, illustrate the company's attempts to improve integrated GPU performance.
NVIDIA, which has traditionally been strong in discrete GPUs, is pushing into the SoC market with its Tegra processor series, focussing on automotive and AI applications. If approved, the company's proposed $40 billion acquisition of ARM (which is now under regulatory review) has the potential to drastically alter the competitive environment.
Using its vertical integration skills, Samsung Electronics continues to develop its Exynos family of SoCs for both internal and external customers. The company's foundry also plays an important role in the SoC ecosystem.
The System on Chip market is expected to experience substantial expansion and transformation in the next few years. The confluence of AI, 5G, and IoT technologies is increasing demand for more advanced and efficient SoC architectures. We predict a transition towards more specialized SoCs designed for specific applications, particularly in developing domains like edge computing and self-driving vehicles.
The growing emphasis on energy efficiency and performance is anticipated to result in additional breakthroughs in chip architecture and manufacturing techniques. The use of advanced packaging methods, such as 2.5D and 3D IC packaging, is projected to play a significant role in improving SoC capabilities.
We also expect market interruptions owing to geopolitical reasons and supply chain challenges. The persistent worldwide chip scarcity has underlined the need for a more resilient and diverse semiconductor supply chain, perhaps leading to new investments and partnerships in SoC manufacture.
Apple Inc.
Qualcomm Technologies, Inc.
Samsung Electronics Co., Ltd.
Intel Corporation
NVIDIA Corporation
Broadcom Inc.
MediaTek Inc.
Huawei Technologies Co., Ltd.
Texas Instruments Incorporated
NXP Semiconductors N.V.
In May 2023, TSMC revealed plans to build a second semiconductor facility in Arizona, boosting their investment to $40 billion.
In February 2023, Qualcomm revealed the Snapdragon X75 5G Modem-RF System, the world's first 5G Advanced-ready modem-RF system.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope & Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking -- Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies list by Country) (Premium)
5. COMPANY PROFILES
5.1. Apple Inc.
5.2. Qualcomm Technologies, Inc.
5.3. Samsung Electronics Co., Ltd.
5.4. Intel Corporation
5.5. NVIDIA Corporation
5.6. Broadcom Inc.
5.7. MediaTek Inc.
5.8. Huawei Technologies Co., Ltd.
5.9. Texas Instruments Incorporated
5.10. NXP Semiconductors N.V. (LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Integration of AI capabilities in SoCs revolutionizes device performance and functionality
6.1.2. Adoption of advanced packaging technologies for enhanced SoC performance
6.1.3. Increasing focus on edge computing driving specialized SoC designs
6.2. Market Drivers
6.2.1. Increasing demand for energy-efficient and high-performance devices boosts SoC adoption
6.2.2. Rapid growth of IoT and connected devices fuels SoC market expansion
6.2.3. Advancements in 5G technology driving demand for specialized SoCs
6.3. Market Restraints
6.3.1. Complexity in SoC design and manufacturing processes poses challenges
6.3.2. High initial investment and development costs for advanced SoCs
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Application-Specific Integrated Circuit (ASIC)
7.1.1. Consumer electronics ASICs
7.1.2. Automotive ASICs
7.1.3. Industrial ASICs
7.2. Field Programmable Gate Array (FPGA)
7.2.1. High-end FPGAs
7.2.2. Mid-range FPGAs
7.2.3. Low-end FPGAs
7.3. Graphics Processing Unit (GPU)
7.3.1. Integrated GPUs
7.3.2. Discrete GPUs
7.4. Microcontroller
7.4.1. 8-bit microcontrollers
7.4.2. 16-bit microcontrollers
7.4.3. 32-bit microcontrollers
7.5. Microprocessor
7.5.1. x86 microprocessors
7.5.2. ARM microprocessors
7.5.3. RISC-V microprocessors
8. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. Consumer Electronics
8.1.1. Smartphones
8.1.2. Tablets
8.1.3. Smart home devices
8.1.4. Wearables
8.2. Automotive
8.2.1. Infotainment systems
8.2.2. Advanced Driver Assistance Systems (ADAS)
8.2.3. Electric Vehicle control systems
8.3. IT & Telecommunication
8.3.1. Network infrastructure equipment
8.3.2. Data centers
8.3.3. 5G base stations
8.4. Aerospace & Defense
8.4.1. Avionics
8.4.2. Radar systems
8.4.3. Military communications
8.5. Healthcare
8.5.1. Medical imaging devices
8.5.2. Patient monitoring systems
8.5.3. Portable medical devices
9. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. North America
9.1.1. United States
9.1.2. Canada
9.1.3. Mexico
9.2. South America
9.2.1. Brazil
9.2.2. Argentina
9.2.3. Rest of South America
9.3. Europe
9.3.1. Germany
9.3.2. United Kingdom
9.3.3. France
9.3.4. Italy
9.3.5. Spain
9.3.6. Russia
9.3.7. Rest of Europe
9.4. Asia-Pacific
9.4.1. China
9.4.2. Japan
9.4.3. India
9.4.4. Australia
9.4.5. South Korea
9.4.6. Rest of Asia-Pacific
9.5. Middle-East
9.5.1. UAE
9.5.2. Saudi Arabia
9.5.3. Turkey
9.5.4. Rest of Middle East
9.6. Africa
9.6.1. South Africa
9.6.2. Egypt
9.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
By Type:
Application-Specific Integrated Circuit (ASIC)
Field Programmable Gate Array (FPGA)
Graphics Processing Unit (GPU)
Microcontroller
Microprocessor
By Application:
Consumer Electronics
Automotive
IT & Telecommunication
Aerospace & Defense
Healthcare
By Region:
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
We at Aurorawave Intellects Market Report gives total market analysis that suit our customer business need and permit decision maker to run organizations without any problem. We have accomplished greatness in giving start to finish market research arrangements. Our detachment of industry specialists accumulate key data and get ready substance that lines up with our customer's business/specialty.
We at aurorawaveintellects.com offer mainly 3 types of licenses:
• Single User: Research Report copy can be distributed to a single user only
• Multi User: Research Report distribution is restricted up to 5 users.
• Corporate License :Research Report can be distributed across the company.
Based on the nature of the topic or research, the formats vary. The different formats of the report are as following:
• Word Document
• PPT
Following modes are available for making the payment:
• Online Payment (Visa Card, Master Card, Stripe)
• Razorpay
• Net Banking
• Bank Wire Transfer
Our customer service and research specialist team are available by phone and by email. Customer service hours are 24X7 Indian Standard Time (IST). You may reach us at:
• Email: info@aurorawaveintellects.com
• United Kingdom: ++91 7382742511
