System On Chip (SoC) Market Size and Share
System On Chip (SoC) Market Analysis by Mordor Intelligence
The system-on-chip market size stood at USD 161.88 billion in 2025 and is forecast to reach USD 237.80 billion by 2030, registering a 7.99% CAGR. Softer smartphone refresh cycles were offset by rapid adoption of edge-native AI inference and 5G client devices, keeping unit volumes stable and average die sizes larger. Tier-one automotive OEMs consolidated dozens of control units into centralized compute domains, lifting demand for multicore, ASIL-D capable SoCs. Hyperscalers continued to displace merchant silicon with in-house designs, widening the addressable opportunity for advanced packaging providers. Regional fab incentives in the United States, Japan, and the European Union funded capacity that tempered supply-chain risk and encouraged localized design-for-manufacture strategies.
Key Report Takeaways
- By product type, digital SoC led with 53.1% revenue share in 2024, while heterogeneous/fusion architectures are projected to advance at a 10.2% CAGR through 2030.
- By end-user industry, consumer electronics captured 46.3% of the system-on-chip market share in 2024; automotive is set to grow fastest at a 14.4% CAGR.
- By process node, 7/6 nm technology held 29.5% share of the system-on-chip market size in 2024, whereas 2 nm and below/3-DIC nodes are expected to expand at a 15.3% CAGR.
- By application, smartphones and tablets accounted for 41.7% of 2024 revenue, with edge-AI and IoT devices poised for a 12.4% CAGR to 2030.
- By geography, Asia-Pacific dominated with a 54.8% revenue share in 2024 and is forecast to pace growth at 10.2% CAGR.
Global System On Chip (SoC) Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Soaring demand for 5G-enabled devices | +1.2% | Global, with APAC leading deployment | Short term (≤ 2 years) |
Rapid IoT and AI-edge proliferation | +1.8% | Global, concentrated in North America and APAC | Medium term (2-4 years) |
Automotive shift to centralized E/E architectures | +1.5% | Global, early adoption in Europe and North America | Long term (≥ 4 years) |
Subsidy-fuelled regional fab build-out | +0.9% | North America, Europe, APAC core markets | Long term (≥ 4 years) |
Chiplet-based heterogeneous integration momentum | +0.8% | Global, led by advanced foundries in APAC | Medium term (2-4 years) |
Edge-native AI model inference needs | +1.3% | Global, concentrated in data center regions | Short term (≤ 2 years) |
Source: Mordor Intelligence
Soaring Demand for 5G-Enabled Devices
The first wave of standalone 5G networks brought tighter uplink budgets and higher baseband complexity, prompting smartphone OEMs to embed AI tuning engines inside the modem subsystem. Qualcomm’s Snapdragon 8 Elite coupled a Release 17-class modem with a 45 TOPS neural engine that lifted performance per watt by 45% versus its predecessor.[1]Qualcomm Product Brief, “Snapdragon 8 Elite Platform,” qualcomm.com MediaTek’s Dimensity 9400 adopted a similar hierarchy, accelerating in-line video enhancement for premium handsets launched in early 2025. Companion modules targeting industrial routers replicated this integration, allowing sub-millisecond actuation in smart-factory cells without cloud round-trips. Consequently, handset and industrial gateway refreshes amplified the near-term revenue pulse across the system-on-chip market.
Rapid IoT and AI-Edge Proliferation
Distributed inference workloads pushed designers to blend general-purpose cores, DSPs, and neural accelerators on a single die. EdgeCortix’s SAKURA-II delivered 40 TOPS at sub-10-watt draw for industrial cameras that inspect parts in line. Smart-city integrators retrofitted traffic-signal cabinets with microservers that compress video streams locally before dispatching metadata, slashing backhaul by 80%. The architectural pivot increased silicon content per node while shortening design cycles, which in turn elevated heterogeneous/fusion SoCs as the fastest growing slice of the system on chip market.
Automotive Shift to Centralized E/E Architectures
Vehicle platforms that entered series production in 2025 replaced dozens of ECU housings with zonal controllers tethered to a central compute hub. NXP’s S32N family merged real-time deterministic cores with Linux-capable application clusters to host drive-by-wire, ADAS, and infotainment workloads simultaneously. Renesas’ R-Car Gen 5 matched ASIL-B functional safety on neural accelerators used for perception stacks. Early field deployments by European luxury brands validated the total-cost-of-ownership upside, anchoring a 14.4% CAGR outlook for automotive revenue inside the system-on-chip market to 2030.
Subsidy-Fuelled Regional Fab Build-Out
The United States CHIPS and Science Act finalized USD 52 billion in grants, including USD 6.1 billion earmarked for Micron’s Boise memory expansion and USD 65 billion pledged by TSMC toward its Arizona megasite. Similar frameworks in Japan and Germany co-funded logic and power-device lines. New wafer starts near end-customers improved resiliency and created tight feedback loops between design teams and process engineers, condensing tape-out times for leading-edge nodes.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Escalating <5 nm design and mask costs | -1.1% | Global, concentrated in advanced foundries | Short term (≤ 2 years) |
Export-control-driven supply-chain fragility | -0.8% | Global, particularly the US-China trade routes | Medium term (2-4 years) |
Immature chiplet interoperability standards | -0.6% | Global, affecting advanced packaging | Medium term (2-4 years) |
Thermal-density limits in high-end SoCs | -0.7% | Global, critical for mobile and edge applications | Long term (≥ 4 years) |
Source: Mordor Intelligence
Escalating Sub-5 nm Design and Mask Costs
Mask-set expenses for TSMC’s 2 nm node surpassed USD 30,000 per wafer in late 2024, 50% higher than 3 nm, and drove total project budgets for complex SoCs toward USD 100 million.[2]TSMC Corporate Communications, “TSMC Arizona Fab Updates,” tsmc.com Only a handful of fabless houses could underwrite such outlays, forcing the long-tail of designers onto mature nodes, limiting feature integration and flattening TAM growth for bleeding-edge EDA vendors.
Export-Control Driven Supply-Chain Fragility
Expanded Foreign Direct Product Rule thresholds restricted 600-series lithography equipment bound for mainland China in 2024. NVIDIA responded by binning compliance-limited GPUs with fewer HBM stacks and launched a parallel board SKU for Chinese hyperscalers, which diluted gross-margin leverage. Duplicate test, package, and logistics flows raised working capital requirements for SoC vendors and injected forecast volatility into the system-on-chip market.
Segment Analysis
By Product Type: Digital SoC Dominance Faces Heterogeneous Challenge
Digital SoC devices held 53.1% of 2024 revenue, reflecting their ubiquity in smartphones and general computing. Designers reused scalable IP libraries across tiers, smoothing cost curves and enabling rapid derivative launches. However, the arrival of chiplet-based stacking tolls the first structural challenge to monolithic digital supremacy. Heterogeneous/fusion SoCs—splicing CPU, GPU, NPU, and specialty accelerators on a single interposer—logged a 10.2% CAGR outlook, siphoning share from legacy digital formats. Mixed-signal variants remained pivotal where sensor fusion and power management intersected, such as in battery BMS controllers. RF/connectivity SoCs capitalized on expanded Wi-Fi 7 and 5G RedCap rollouts, while analog-centric devices anchored powertrain and industrial drive channels. The result is a transitional phase where the system-on-chip market preserves digital volume leadership yet directs incremental R&D to modular, domain-specific hybrids.
The architectural reshuffle also changed the foundry mix. Pure digital tape-outs gravitated to high utilization 7/6 nm lines, whereas early heterogeneous prototypes paired 5 nm logic dies with 16 nm analogue chiplets, nesting under TSMC’s SoIC packaging flow. This partitioning lowered risk by sheltering analog IP from ultra-thin fin-width shrink penalties. Vendors emphasized standardization through the Universal Chiplet Interconnect Express (UCIe) specification, aiming to unleash a multi-sourced chiplet marketplace after 2026. As interoperability matures, the system-on-chip market is slated to witness an accelerated product-type turnover, compressing design cycles and amplifying die-to-package value capture.
Note: Segment shares of all individual segments available upon report purchase
By End-User Industry: Automotive Acceleration Disrupts Consumer Dominance
Consumer electronics commanded 46.3% revenue in 2024 as handsets, wearables, and AR glasses refreshed on predictable 12-to-18-month cadences. Content gains came from larger ISP clusters that supported generative AI camera features. Yet, automotive overtook communications infrastructure as the fastest-growing sector, charting a 14.4% CAGR through 2030. The shift stemmed from software-defined vehicle roadmaps that centralize perception, domain control, and infotainment workloads on a limited number of vehicle compute nodes. Tier-ones began locking multi-year silicon supply agreements, curbing allocation risk and granting SoC houses unmatched demand visibility. The industrial and IoT segment maintained steady single-digit expansion, aided by brownfield retrofits that layered predictive-maintenance models atop PLCs.
In healthcare, regulatory clearances for in-body continuous-glucose monitors boosted volumes of ultra-low-power biomedical SoCs with integrated radios. Data-center demand evolved as hyperscalers such as AWS adopted internally developed Graviton4 CPUs, eroding merchant server-CPU TAM yet spurring co-packaged optics controllers inside racks. Communications infrastructure revenue benefited from 5G Advanced baseband upgrades, but margins compressed due to open-RAN pricing. Altogether, the system-on-chip market leaned on automotive and edge-AI IoT orders to cushion cyclicality in consumer handsets, showcasing its diversified demand mosaic across industries.
By Process Node: Advanced Nodes Drive Performance Despite Cost Pressures
The 7/6 nm class captured 29.5% share in 2024, offering the optimal yield-to-performance tradeoff for mainstream clients. Mobile APs leveraged this node to integrate 19 billion transistor counts without EUV mask tax blowouts. Mature ≥28 nm technology retained momentum in industrial MCUs and long-lifecycle automotive chassis controllers, valued for multidecade availability pledges. Nevertheless, 2 nm and below, including 3-DIC logic stacks, clocked a 15.3% CAGR, underwritten by AI cloud accelerators and flagship smartphone chipsets. The system-on-chip market size for sub-2 nm tape-outs is projected to hit mid-teens billion USD by 2030 as backside power rails trim IR drop and unlock higher frequency ceilings.
Process mix divergence spurred differentiated capex. Foundries funneled new-build funds into GAA nodes while refurbishing 40 nm lines for MEMS and power discrete co-production. Some fabless houses adopted split-die approaches, fabricating voltage-tolerant analogue dice on 28 nm and bonding them to 3 nm compute tiles through hybrid bonding. Such heterogeneity cushioned NRE exposure and expanded die-area envelopes without pushing every transistor into the costliest geometry. As a result, node transition economics remain nuanced, with many designs embodying multiple generations inside one advanced package, a hallmark trend in the system-on-chip industry.

Note: Segment shares of all individual segments available upon report purchase
By Application: Edge-AI Growth Challenges Smartphone Supremacy
Smartphones and tablets delivered 41.7% of 2024 demand, yet unit elasticity is flattening as global penetration exceeds 90%. Feature-phone displacement is largely complete, nudging OEMs to differentiate on on-device generative AI. Edge-AI and IoT devices, conversely, are set for a 12.4% CAGR through 2030, buoyed by smart-factory, energy-distribution, and traffic-management deployments. Vision nodes employing 20-TOPS inference at point-of-capture curtailed cloud egress costs. Servers and data centers adopted disaggregated SoCs that decouple compute from memory bandwidth via Chip-to-Chip CXL links, reshaping board layouts but escalating package I/O density.
Automotive ADAS and infotainment installations grew as radar fusion and occupant-monitoring mandates proliferated. Wearables and smart-home controllers centered on always-on voice wake-words, shrinking standby budgets below 5 milliwatts. Industrial automation platforms upgraded to deterministic TSN Ethernet stacks, demanding tightly integrated MAC cores. Collectively, these shifts indicate that the system-on-chip market will gradually favor edge-resilient SKUs, diluting the share once monopolized by mobile handsets.
Geography Analysis
Asia-Pacific held 54.8% revenue in 2024 and continued to outpace all regions with a 10.2% CAGR to 2030. China’s “Little Giant” subsidy track funded over 200 domestic SoC startups, each targeting vertical niches from low-orbit satellite modems to automotive lidar-signal processors. South Korean IDMs leveraged captive DRAM plus HBM production to bundle memory with compute tiles, tightening ecosystem stickiness. Taiwan’s foundry corridor maintained process leadership, shipping the first risk wafers on 2 nm gate-all-around in Q2 2025, while Japanese fabs specialized in wide-bandgap power SoCs for EV traction inverters.
North America benefited from USD 20 billion of Intel investment in Ohio and a new packaging plant in New Mexico that entered pilot runs in April 2025. AWS rolled Graviton4-based instances across five U.S. availability zones after July 2024 and reported a 30% web-tier performance uplift, establishing a silicon flywheel that accelerates domestic design cycles. Government export-control updates did constrain bilateral trade with China, yet robust cloud and defense spending preserved a high single-digit CAGR for the region.
Europe pivoted around automotive silicon excellence. German OEMs locked multi-generational supply accords with Infineon and STMicroelectronics to secure ADAS compute, while the EU Chips Act committed EUR 43 billion (USD 47.9 billion) to double regional output capacity by 2030.[3]European Commission, “EU Chips Act Fact Sheet,” ec.europa.eu France and Italy co-financed wafer-level packing lines for 3-DIC modules tailored to industrial automation systems, ensuring supply autonomy for Industry 4.0 rollouts. Collectively, these dynamics indicate that while Asia-Pacific retains numeric leadership, the system-on-chip market is evolving into a tri-polar supply landscape that balances resilience with scale.

Competitive Landscape
Incumbent leaders such as Qualcomm, MediaTek, and Broadcom defended their share by accelerating IP reuse and adopting 4-year public process roadmaps that overlap mobile, PC, and XR designs. Qualcomm finalised its USD 2.4 billion Alphawave Semi acquisition in June 2024, bringing high-speed SerDes know-how in-house for 224 Gbps die-to-die links. MediaTek expanded flagship penetration by taping out a 3 nm AP in collaboration with TSMC that sampled in January 2025, aiming at sub-2-watt standby draw for foldable handsets.
Hyperscalers intensified vertical integration. AWS deployed fourth-generation Graviton ARM CPUs, custom EFA network adapters, and Trainium accelerators at scale. Google’s TPU Series 5 added sparsity-aware matrix engines, while Apple extended the M-series into a 14-core workstation SKU, illustrating the growing in-house silicon trend. These moves diluted unit volumes available to merchant suppliers but expanded TAM for IP licensors and advanced OSAT houses that package such bespoke dies.
Start-ups targeted cooling, security, and AI offload white spaces. Frore Systems’ AirJet PAK solid-state cooler expelled 25 watts in a 6 mm Z-height, unlocking fanless NPU modules for edge gateways.[4]Frore Systems Media Room, “AirJet PAK Launch,” froresystems.comxMEMS followed with a 1 mm thin micro-blower slated for XR smart glasses, mitigating thermal throttling in constrained wearables. Meanwhile, the Universal Chiplet Interconnect Express consortium added security extensions in v1.1, paving the way for trusted, multi-vendor chiplet assemblies. Patent filings from Meta and Apple underscored hardware-rooted AI acceleration and memory-side cache coherence as core R&D priorities, projecting an innovation race that keeps competitive intensity elevated across the system-on-chip market.
System On Chip (SoC) Industry Leaders
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Broadcom Inc.
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Intel Corporation
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MediaTek Inc.
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Microchip Technology Inc.
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NXP Semiconductors NV
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- January 2025: AMD completed its USD 665 million acquisition of Silo AI, adding domain-specific model-training tooling for data-center GPUs and CPU-NPU hybrids.
- January 2025: Qorvo unveiled the QPG6200L SoC for smart-home hubs with <1 µA sleep current and tri-radio Matter, Zigbee, and BLE support.
- December 2024: Frore Systems launched AirJet PAK modules that dissipate 25 watts within 6 mm for 100 TOPS edge-AI boards.
- December 2024: Broadcom announced FY 2024 AI infrastructure revenue of USD 12.2 billion in its investor release and crossed the USD 1 trillion valuation mark.
Global System On Chip (SoC) Market Report Scope
System-on-a-chip refers to a type of integrated circuit (IC) design that combines many or all high-level function elements of an electronic device onto a single chip instead of using separate components mounted to a motherboard, as is done in traditional electronics design. The components that an SoC generally looks to incorporate within itself include a central processing unit, input and output ports, internal memory, and analog input and output blocks, among other things.
The system-on-chip (SoC) market is segmented by type (analog, digital, and mixed), end-user industry (consumer electronics, communications, automotive, computing and data storage, industrial, and other end-user industries), and geography (North America, Europe, Asia-Pacific, and Rest of the World). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
By Product Type | Digital SoC | |||
Analog SoC | ||||
Mixed-signal SoC | ||||
RF / Connectivity SoC | ||||
Heterogeneous / Fusion SoC | ||||
By End-user Industry | Consumer Electronics | |||
Communications Infrastructure | ||||
Automotive | ||||
Computing and Data Center | ||||
Industrial and IoT | ||||
Healthcare and Medical Devices | ||||
By Process Node | ≥28 nm | |||
16/14 nm | ||||
10/8 nm | ||||
7/6 nm | ||||
5/4/3 nm | ||||
2 nm and below / 3-DIC | ||||
By Application | Smartphones and Tablets | |||
Edge-AI and IoT Devices | ||||
Servers and Data Centers | ||||
Automotive ADAS/Infotainment | ||||
Industrial Automation | ||||
Wearables and Smart Home | ||||
By Geography | North America | United States | ||
Canada | ||||
South America | Brazil | |||
Rest of South America | ||||
Europe | Germany | |||
France | ||||
United Kingdom | ||||
Italy | ||||
Spain | ||||
Russia | ||||
Rest of Europe | ||||
Asia-Pacific | China | |||
Japan | ||||
South Korea | ||||
Taiwan | ||||
India | ||||
Rest of Asia-Pacific | ||||
Middle East and Africa | Middle East | Saudi Arabia | ||
United Arab Emirates | ||||
Turkey | ||||
Rest of Middle East | ||||
Africa | South Africa | |||
Nigeria | ||||
Rest of Africa |
Digital SoC |
Analog SoC |
Mixed-signal SoC |
RF / Connectivity SoC |
Heterogeneous / Fusion SoC |
Consumer Electronics |
Communications Infrastructure |
Automotive |
Computing and Data Center |
Industrial and IoT |
Healthcare and Medical Devices |
≥28 nm |
16/14 nm |
10/8 nm |
7/6 nm |
5/4/3 nm |
2 nm and below / 3-DIC |
Smartphones and Tablets |
Edge-AI and IoT Devices |
Servers and Data Centers |
Automotive ADAS/Infotainment |
Industrial Automation |
Wearables and Smart Home |
North America | United States | ||
Canada | |||
South America | Brazil | ||
Rest of South America | |||
Europe | Germany | ||
France | |||
United Kingdom | |||
Italy | |||
Spain | |||
Russia | |||
Rest of Europe | |||
Asia-Pacific | China | ||
Japan | |||
South Korea | |||
Taiwan | |||
India | |||
Rest of Asia-Pacific | |||
Middle East and Africa | Middle East | Saudi Arabia | |
United Arab Emirates | |||
Turkey | |||
Rest of Middle East | |||
Africa | South Africa | ||
Nigeria | |||
Rest of Africa |
Key Questions Answered in the Report
What is the current size of the system-on-chip market, and how fast is it expanding?
The system-on-chip market size reached USD 161.88 billion in 2025 and is projected to climb to USD 237.80 billion by 2030, reflecting a 7.99% CAGR.
Which product type commands the largest revenue share today?
Digital SoC devices led with 53.1% of 2024 revenue, owing to their widespread adoption across smartphones, PCs, and consumer electronics.
Which end-user industry is expected to grow the fastest through 2030?
Automotive applications are forecast to register a 14.4% CAGR as centralized electrical/electronic architectures replace legacy distributed ECUs.
Why are heterogeneous / fusion SoCs gaining attention?
They combine CPU, GPU, NPU, and specialty accelerators on one substrate, offering the performance-per-watt needed for edge AI and autonomous workloads while growing at a 10.2% CAGR.
How will regional fabrication incentives reshape the supply chain?
United States, European, and Japanese subsidies are adding local 5 nm-and-below capacity, reducing geopolitical risk and shortening design-to-manufacture feedback loops.
What is the biggest technical hurdle for sub-5 nm SoC development?
Escalating mask-set and design costs—now exceeding USD 30,000 per wafer at 2 nm—limit access to only the largest players and slow broader ecosystem migration.
Page last updated on: December 2, 2024