by System on a chip or SoC refers to integrating all the components (like CPU, GPU, memory and I/O peripherals) of an electronic system into a single integrated circuit. SoC combines various components into a single chip reducing cost, energy consumption, and improving overall performance. With the growing adoption of internet of things (IoT) and edge computing technologies, demand for SoC is increasing significantly. SoCs are widely being used in IoT devices for miniaturizing device sizes and improving their performance. It can process data collected from sensors and autonomous operation without relying on external components. Major applications of SoCs include smartphones, networking devices, wearables, smart home appliances, industrial equipment and automotive.
The global System on a Chip (SoC) Market is estimated to be valued at US$ 189.45 Bn in 2023 and is expected to exhibit a CAGR of 12.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
The growing adoption of edge computing and Internet of Things (IoT) are expected to drive the growth of the global System on a Chip (SoC) market over the forecast period. SoCs integrated all the key components of an electronic system on a single chip, improving functionalities of IoT and edge devices, enabling efficient processing of data and autonomy. They help in reducing costs and energy consumption significantly by removing the need for multiple external chips. Further, increasing penetration of consumer electronics and need for high-performance devices will also propel the market growth. However, concerns regarding data privacy and security due to growing connectivity through SoC-driven IoT devices may restrain the market during the forecast period.
Segment Analysis
The system on a chip (SoC) market can be segmented into application-specific standard product (ASSP) SoCs and full-custom SoCs. ASSP SoCs dominate the market as they are more cost-effective than full-custom SoCs due to their fixed configurations. ASSP SoCs are designed to meet the requirements of commonly used applications like mobile phones, car infotainment systems, and IoT devices. They are mass produced using mature process technologies which brings down production costs significantly compared to full-custom SoCs.
PEST Analysis
Political: Changes in semiconductor import/export regulations globally can impact the SoC supply chain. Several countries aim to reduce dependence on imported chips and boost domestic chip production.
Economic: Rising demand for consumer electronics and proliferation of IoT applications are fueling the need for more efficient and powerful SoCs. However, a global economic slowdown can negatively impact chip sales.
Social: Increasing mobile connectivity and digitalization of work and life are driving the adoption of SoCs across multiple devices. Growing popularity of technologies like artificial intelligence and augmented reality is propelling demand for advanced SoCs.
Technological: Innovation in fabrication processes and rise of new architectures are enabling the integration of more functionalities into a single chip. Advanced nodes below 10nm and chiplet-based designs promise greater performance and power efficiency.
Key Takeaways
The Global System On A Chip (Soc) Market Growth is expected to witness high over the forecast period.
Asia Pacific dominates the SoC market currently due to presence of leading foundries like Samsung and TSMC as well as a large consumer base for devices. China, Taiwan, and South Korea are major markets in the region.
Key players operating in the system on a chip (SoC) market are Honor Technology, Inc., Vesta Healthcare (Hometeam Care, Inc.), 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. Companies are focusing on developing more powerful and energy-efficient chips for 5G, AI, IoT, and automotive applications. Collaboration with foundries is helping chipmakers accelerate the deployment of advanced manufacturing technologies.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
