System On Chip (SoC) Market Size

System On Chip Market Analysis

The System On Chip Market size is estimated at USD 172.65 billion in 2024, and is expected to reach USD 253.80 billion by 2029, growing at a CAGR of 8.01% during the forecast period (2024-2029).

System-on-chip (SoC) technology has become an integral part of modern technology, revolutionizing the way electronic devices are designed and manufactured. Basically, a system-on-a-chip, or SoC, integrates all the components of a computer onto a single chip, including CPU, memory, input and output ports, and secondary storage.

• Rapidly evolving technologies, including 5G and 6G, software-packed vehicles, non-terrestrial networks (NTN), and digital healthcare, endless imagination, and invention across industries have been significantly paving the way for SoC to enter the consumer market rapidly. SoCs have long been incorporated into electronic devices such as tablets and mobile phones because they are compact and power-efficient.
• Today, SoCs are increasingly being used in the Internet of Things devices and other devices. The rising demand for smart and power-efficient devices by consumers and exponential adoptions of IoT by various industry verticals are expected to be driving factors for the players in the semiconductor market, thus boosting the growth of the SoC market.
• Another important trend in the electronics industry is the increase of the Internet of Things (IoT). With the rise in demand for smart devices, IoT has become an essential part of everyday life. Thus, businesses are primarily using this technology to develop new products and services. SoCs will also play a pivotal role in the advancement of flexible electronics, enabling new form factors for wearable and implantable devices.
• As technology continues to evolve, several industries are adopting automation and digitization, thereby bringing new opportunities to the key players for entering new markets but with high initial research and development costs associated with the system on a chip (SoC). Owing to the increasing customization of SoC for various products, the players need to focus on various R&D projects simultaneously, increasing their project costs. Such factors are expected to hamper the market growth over the forecast period.
• While COVID-19 changed consumer spending patterns by increasing the demand for consumer electronics, the automotive industry’s move toward electric vehicles is also boosting the need for chips. For instance, a typical gasoline engine car uses about 50 to 150 semiconductor chips, but an electric vehicle can use up to 3,000 semiconductor chips. The growing emphasis on electric vehicle manufacturing is certain to consume vastly more semiconductor chips in the future, thus driving the role of SoC in the global market.