System On Chip Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

System On Chip Market is Segmented by Product Type (Digital SoC, Analog SoC, Mixed-Signal SoC, RF/Connectivity SoC, and More), End-User Industry (Consumer Electronics, Communications Infrastructure, Automotive, and More), Process Node (≥28 Nm, 16/14 Nm, 10/8 Nm, 7/6 Nm, and More), Application (Smartphones and Tablets, Edge-AI and IoT Devices, Servers and Data Centers, Automotive ADAS/Infotainment, and More), and Geography.

System On Chip (SoC) Market Size and Share

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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.  

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.

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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.

System On Chip (SoC) Market: Market Share by Process Node
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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.

System On Chip (SoC) Market CAGR (%), Growth Rate by Region
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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

  1. Broadcom Inc.

  2. Intel Corporation

  3. MediaTek Inc.

  4. Microchip Technology Inc.

  5. NXP Semiconductors NV

  6. *Disclaimer: Major Players sorted in no particular order
System On Chip Market Concentration
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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.

Table of Contents for System On Chip (SoC) Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. MARKET LANDSCAPE

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Soaring demand for 5G-enabled devices
    • 4.2.2 Rapid IoT and AI-edge proliferation
    • 4.2.3 Automotive shift to centralized E/E architectures
    • 4.2.4 Subsidy-fuelled regional fab build-out
    • 4.2.5 Chiplet-based heterogeneous integration momentum
    • 4.2.6 Edge-native AI model inference needs
  • 4.3 Market Restraints
    • 4.3.1 Escalating <5 nm design and mask costs
    • 4.3.2 Export-control driven supply-chain fragility
    • 4.3.3 Immature chiplet interoperability standards
    • 4.3.4 Thermal-density limits in high-end SoCs
  • 4.4 Impact of Macroeconomic Factors
  • 4.5 Value Chain Analysis
  • 4.6 Regulatory Landscape
  • 4.7 Technological Outlook
  • 4.8 Porter's Five Forces Analysis
    • 4.8.1 Bargaining Power of Suppliers
    • 4.8.2 Bargaining Power of Buyers
    • 4.8.3 Threat of New Entrants
    • 4.8.4 Threat of Substitutes
    • 4.8.5 Intensity of Competitive Rivalry
  • 4.9 Chiplet Adoption and Disaggregation Trend Analysis

5. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 5.1 By Product Type
    • 5.1.1 Digital SoC
    • 5.1.2 Analog SoC
    • 5.1.3 Mixed-signal SoC
    • 5.1.4 RF / Connectivity SoC
    • 5.1.5 Heterogeneous / Fusion SoC
  • 5.2 By End-user Industry
    • 5.2.1 Consumer Electronics
    • 5.2.2 Communications Infrastructure
    • 5.2.3 Automotive
    • 5.2.4 Computing and Data Center
    • 5.2.5 Industrial and IoT
    • 5.2.6 Healthcare and Medical Devices
  • 5.3 By Process Node
    • 5.3.1 ≥28 nm
    • 5.3.2 16/14 nm
    • 5.3.3 10/8 nm
    • 5.3.4 7/6 nm
    • 5.3.5 5/4/3 nm
    • 5.3.6 2 nm and below / 3-DIC
  • 5.4 By Application
    • 5.4.1 Smartphones and Tablets
    • 5.4.2 Edge-AI and IoT Devices
    • 5.4.3 Servers and Data Centers
    • 5.4.4 Automotive ADAS/Infotainment
    • 5.4.5 Industrial Automation
    • 5.4.6 Wearables and Smart Home
  • 5.5 By Geography
    • 5.5.1 North America
    • 5.5.1.1 United States
    • 5.5.1.2 Canada
    • 5.5.2 South America
    • 5.5.2.1 Brazil
    • 5.5.2.2 Rest of South America
    • 5.5.3 Europe
    • 5.5.3.1 Germany
    • 5.5.3.2 France
    • 5.5.3.3 United Kingdom
    • 5.5.3.4 Italy
    • 5.5.3.5 Spain
    • 5.5.3.6 Russia
    • 5.5.3.7 Rest of Europe
    • 5.5.4 Asia-Pacific
    • 5.5.4.1 China
    • 5.5.4.2 Japan
    • 5.5.4.3 South Korea
    • 5.5.4.4 Taiwan
    • 5.5.4.5 India
    • 5.5.4.6 Rest of Asia-Pacific
    • 5.5.5 Middle East and Africa
    • 5.5.5.1 Middle East
    • 5.5.5.1.1 Saudi Arabia
    • 5.5.5.1.2 United Arab Emirates
    • 5.5.5.1.3 Turkey
    • 5.5.5.1.4 Rest of Middle East
    • 5.5.5.2 Africa
    • 5.5.5.2.1 South Africa
    • 5.5.5.2.2 Nigeria
    • 5.5.5.2.3 Rest of Africa

6. COMPETITIVE LANDSCAPE

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global-level Overview, Market-level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)
    • 6.4.1 Advanced Micro Devices Inc.
    • 6.4.2 Apple Inc.
    • 6.4.3 Arm Holdings plc
    • 6.4.4 Broadcom Inc.
    • 6.4.5 Rockchip Electronics Co., Ltd.
    • 6.4.6 Google LLC (Tensor SoC)
    • 6.4.7 HiSilicon Technologies Co., Ltd.
    • 6.4.8 Infineon Technologies AG
    • 6.4.9 Intel Corporation
    • 6.4.10 Marvell Technology Inc.
    • 6.4.11 MediaTek Inc.
    • 6.4.12 Microchip Technology Inc.
    • 6.4.13 Nvidia Corporation
    • 6.4.14 NXP Semiconductors N.V.
    • 6.4.15 Qualcomm Technologies Inc.
    • 6.4.16 Realtek Semiconductor Corp.
    • 6.4.17 Renesas Electronics Corporation
    • 6.4.18 Samsung Electronics Co., Ltd. (System LSI)
    • 6.4.19 SiFive Inc.
    • 6.4.20 Silicon Labs Inc.
    • 6.4.21 STMicroelectronics N.V.
    • 6.4.22 Taiwan Semiconductor Manufacturing Company Limited
    • 6.4.23 Texas Instruments Incorporated
    • 6.4.24 Allwinner Technology Co., Ltd.
    • 6.4.25 UNISOC Technologies Co., Ltd.

7. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

  • 7.1 White-space and Unmet-need Assessment
*List of vendors is dynamic and will be updated based on customized study scope
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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
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
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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

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