The System On A Chip (Soc) Market is estimated to be valued at US$ 140.99 Bn in 2023 and is expected to exhibit a CAGR of 8% over the forecast period 2022 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
System on a chip (SoC) integrates various components of an electronic system into a single chip. It combines digital, analog, mixed-signal, and often radio-frequency functions all into a single integrated circuit. SoCs are commonly used in smartphones, tablets, digital televisions, and other consumer electronic devices as they improve performance and reduce production costs.
Market Dynamics:
The growing demand for miniaturization of electronic devices and rising adoption of connected devices are expected to drive the growth of the system on a chip market during the forecast period. Firstly, SoCs aid in reducing the space and power requirements of devices as all the components are integrated into a single chip. This allows for manufacturing of compact smartphones, smartwatches, and other portable consumer electronics. Secondly, the proliferation of the internet of things has accelerated the connectivity of devices ranging from home appliances to industrial machines. SoCs offer an efficient solution for connecting such devices as they integrate wireless communications protocols along with other functionalities.
Market key trends:
One of the key trends in the System on a Chip (SoC) market is the rise of artificial intelligence (AI) chips in SoCs. With increasing demand for AI capabilities in consumer electronics like smartphones, autonomous vehicles, etc., chip manufacturers are integrating AI processing capabilities into their SoC designs. For example, the A-series chips from Apple that power iPhones come with integrated AI chips that enable features like facial recognition, personalized assistant, image recognition etc. similarly, AI capabilities are becoming a standard part of flagship SoCs from Qualcomm, MediaTek, and other players as well. This trend is expected to further gather pace over the coming years as AI gets embedded across more applications.
SWOT Analysis
Strength: SoCs provide chip manufacturers the flexibility to integrate different functionalities like CPU, GPU, storage, connectivity etc. onto a single substrate reducing cost and size of the electronic devices.
Weakness: Frequent updates to keep up with evolving technologies can increase design complexities and R&D costs for SoC manufacturers.
Opportunity: Rising demand for AI and IoT devices offers opportunities to design dedicated AI and IoT chips as part of the SoCs.
Threats: Increasing commoditization of basic SoC functions could intensify price pressures on chipmakers and consolidations in the industry.
Key Takeaways
The Global System On A Chip (Soc) Market is expected to witness high growth, exhibiting CAGR of 8% over the forecast period, due to increasing AI capabilities in consumer devices. The market size for 2023 is estimated to be US$ 140.99 Bn.
Regional analysis: Asia Pacific dominated the global SoC market in 2021 owing to large presence of electronic manufacturing industries and foundries in countries such as China, Taiwan and South Korea. Countries like India and ASEAN nations are also emerging as key hubs and expected to drive highest growth during the forecast period.
Key players: Key players operating in the System on a Chip (SoC) market include 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. These players are focusing on integrating more AI capabilities in their mobile SoCs as well as designing specialized SoCs for IoT, ADAS and other applications.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
