USD 164.1 Billion
Report ID:
SQMIG45N2083 |
Region:
Global |
Published Date: April, 2024
Pages:
197
|Tables:
96
|Figures:
76
System-on-Chip Market size was valued at USD 164.1 Billion in 2023 and is poised to grow from USD 177.39 Billion in 2024 to USD 330.78 Billion by 2032, growing at a CAGR of 8.1% during the forecast period (2025-2032).
As smartphones, tablets, and wearable technology require small powerful processors which can handle computations, graphics, and networking in an all-in-one package, the global system-on-chip market growth is boosting. System on chip (SoC) has advanced enormously because of this due to manufacturers' never-ending invention in response to consumers requiring faster, more compact and energy-efficient pieces. These events have further accelerated market growth. Smaller node sizes and better design architectures are two instances of continuous developments in semiconductor manufacturing methods that are driving the boom of the global system-on-chip market. The market is expanding due to factors such as the shift to multi-core processors and added AI and machine learning on system-on-chips. Accompanied by advancements, system-on-chip solutions are now able to raise the processing power and efficiency and, along with this, adaptability with robustness. They come under a wide range of applications-from industrial automation to consumer electronics.
Among the possibilities the industry has, some key ones include cutting-edge technologies, for instance, artificial intelligence, 5G, and driverless cars. The market has significant growth opportunities because of increasing demands in edge computing solutions and industrial automation and smart city projects using SoCs. Besides, the rise of awareness about sustainable and energy-efficient electronics opens the doors to the development of green system-on-chips that align with companies and customers that take the environment seriously. Expansion in the global semiconductor ecosystem, fueled by localization and geopolitical changes, also presents new opportunities for market growth.
US System-on-Chip Market is poised to grow at a sustainable CAGR for the next forecast year.
Market snapshot - 2025-2032
Global Market Size
USD 164.1 Billion
Largest Segment
Digital
Fastest Growth
Mixed
Growth Rate
8.1% CAGR
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Global System-on-Chip Market is segmented on the basis of type, end user, applications, and region. By type, the market is segmented into digital SoCs, mixed-signal SoCs, and analog SoCs. By end user, the market is segmented into consumer electronics, automotive, healthcare, industrial, aerospace and defense, and others. By applications, the market is segmented into smartphones and tablets, automotive electronics, consumer electronics, industrial automation, healthcare devices, and others. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
As per the 2023 global system-on-chip market forecast, due to high demand for smartphones, tablets, and other consumer electronics that are mainly based on digital system-on-chips for their processing and functionality, the digital segment dominated the market. The digital system-on-chips are extremely dependent on complex algorithm execution, high-speed data processing, and the implementation of networking features such as 5G. Digital system-on-chips have also received further stimuli toward segmental growth as their developments coincide with advancements in artificial intelligence and machine learning technologies suitable for applications demanding high processing capabilities. Moreover, aside from strong market share, this is also fueled by a trend towards smart and connectivity in consumer and industrial markets.
With more analog and digital functions being integrated onto a single chip, the mixed category is expected to expand at the fastest pace between 2025 and 2032. Instances of mixed SoCs include applications in telephony, automotive electronics, and IoT applications, which require both digital computing for data manipulation and analog signals for physical world interface. Mixed SoCs offer the advantage of reducing the total system size, power consumption, and cost by integrating various features onto a single chip. The mixed category is growing significantly because of the increasing demand for wearable technologies, smart home appliances, and advanced driver-assistance systems in automobiles.
Based on the 2023 global system-on-chip market analysis, the consumer electronics category held the largest market share. High technological progress in these consumer electronics demands more sophisticated and powerful processing units, such as system-on-chips. The increasing demand for seamless connectivity, enhanced user experience, and multifunctionality in consumer devices has been an important factor in system-on-chips becoming part of the process for manufacturers to deliver their expectations. This can be the key in consumer electronics as several parts-integrated processors, memory, and communication capabilities, all exist on one chip. Besides reducing the size of these devices, this maximizes the efficiency of performance and energy utilization.
The automotive & transportation segment will be the leading segment from 2025 to 2032, propelled by more extensive usage of infotainment systems, ADAS, and an impetus toward autonomous cars. The demand for highly integrated processors that can process complicated processing demands while still conserving reliability and economy increased due to the trend that the automotive industry moves towards smarter, safer, and more connected automobiles. System-on-chips are powering the ever-increasing number of sensors, cameras, and communication modules in cars and are the key to current automotive systems' real-time data processing and decision-making.
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The North America system-on chip market took the highest share of revenue globally in 2024, with around 22%. Growth in demand for sophisticated consumer electronics and automobile sectors leading to a robust growth of this market in North America. Innovation and development in system-on-chips have been boosted by the region's strong technical infrastructure and presence of leading semiconductor companies. In addition, the fast growth of IoT devices has increased the demand for highly complex and efficient SoC solutions, while the rapid pace of AI and machine learning development is also fueling that demand.
Whereas, in Europe, the market will continue to grow at an impressive CAGR between 2025 and 2032 owing to regional focus areas on energy efficiency technologies, automobile advances, and industrial automation. Among the strongest drivers will be the increased adoption of system-on-chips within smart industrial systems and EVs, both requiring a high, efficient processing architecture. In addition, with Industry 4.0 and smart manufacturing in Europe, the demand for system-on-chip solutions, including high-performance computing and real-time data processing, is on the rise. Therefore, companies will look for more powerful, smaller, and sturdier chips to meet their changing technical requirements, which will further fuel market growth.
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System-on-Chip Market Drivers
Increasing Interest in Electric Vehicles (EVs)
With electric vehicles rapidly gaining adoption, the need for system-on-chips has been increased. These cars will require high-performance, energy-efficient electronics in powertrain control, battery management, and autonomous driving. Several functions can be combined on a single chip using system-on-chips, thereby saving both power and space—factors that are particularly crucial in the case of EVs. Therefore, the significance of system-on-chip solutions is bound to increase with growth in the EV industry.
Rise of Smart Manufacturing and Industry 4.0
As a result of the growth of Industry 4.0 in, system-on-chips are required as more and more companies become obligated to automate and process real-time data. System-on-chips have enabled the integration of AI, IoT, and machine learning, making smart factories more productive and effective in decision-making. Smarter and efficient production lines, industrial transformation, are made possible with system-on-chips that supply the processing capacity to analyze huge data streams produced through more automated manufacturing processes.
System-on-Chip Market Restraints
Limited Capability to Process Complex Tasks
Even though system-on-chips are very efficient in many applications, they can have limited processing capability when dealing with extremely complicated tasks such as deep learning models or sophisticated artificial intelligence. System-on-chips may not be as popular as traditional processors or cloud-based solutions in some areas where significant computing capabilities are required. This restriction may prevent system-on-chips from being fully implemented in applications that require greater resources.
Shortage of Semiconductors and the Supply Chain
The major disruption in the global semiconductor supply chain over the past year or so has affected the availability of critical components needed for system-on-chips. On the grounds of geopolitical concerns, delays in manufacturing, and shortage of raw materials, system-on-chip manufacturers may experience delays in production and higher prices. These supply chain issues may hinder market growth, particularly for those markets where significant growth depends heavily on timely availability of system-on-chips.
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The fierce competition of the global system-on-chip market is dominated by major players including Qualcomm, NVIDIA, Intel, Samsung Electronics, and MediaTek. This industry would witness many new entrants that are mostly specific to niches, such as electric cars and industrial automation. The competition will depend on how much further innovations create the performance, energy efficiency, and integration capabilities of the products.
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected using Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, the global system-on-chip market outlook will continue to change strongly on the support of technological developments, including AI, 5G, and the Internet of Things (IoT), and growing popularity of electric cars and Industry 4.0. Compact, energy-efficient, and high-performance solutions are provided by system-on-chips, and this is evident in the use of system-on-chips in consumer electronics, automotive, and industrial automation. The development costs are extremely high and the supply chain disruptions, which still remain. Advancements in edge computing, energy efficiency, and AI-enabled features will drive the future of the market. Strong growth is expected for the market in regions such as Europe and Asia-Pacific, where development in smart technology is taking place at a rapid pace.
Report Metric | Details |
---|---|
Market size value in 2023 | USD 164.1 Billion |
Market size value in 2032 | USD 330.78 Billion |
Growth Rate | 8.1% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the System-on-Chip Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the System-on-Chip Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the System-on-Chip Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the System-on-Chip Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
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