PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1890766
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1890766
The global system-on-chip (SoC) market is experiencing strong and sustained expansion as semiconductor technologies advance and the demand for compact, efficient, high-performance electronics accelerates worldwide. Valued at USD 134.09 billion in 2024, the market is projected to reach USD 144.23 billion in 2025 and nearly double to USD 269.83 billion by 2032, driven by rapid innovation in consumer electronics, automotive applications, IoT devices, and AI-enabled hardware.
A system-on-chip integrates multiple electronic functions-CPU, GPU, memory interfaces, connectivity modules, and signal processors-onto a single microchip. This high-density configuration enables faster processing, reduced energy consumption, and minimal physical footprint, making SoCs indispensable in mobile devices, AI-powered electronics, industrial automation systems, and next-generation vehicles.
Generative AI Transforming SoC Development
Generative AI is reshaping the semiconductor landscape by enabling faster, more advanced chip design. AI-assisted tools support simulation, verification, and optimization, significantly reducing development time. Leading companies such as NVIDIA are launching AI-optimized SoCs tailored for heavy-duty computing tasks, including the GeForce RTX 50 Series GPUs powered by the Blackwell AI chip. These advanced SoCs address the rising computational demands of generative AI, edge processing, and intelligent devices, strengthening market growth.
Key Market Trends
A prominent trend is the surging demand for IoT and connected devices, which require compact, power-efficient, and high-speed SoCs. As IoT expands across smart homes, healthcare, wearables, and industrial automation, SoCs serve as the backbone, providing processing, connectivity, and AI inference in a single integrated unit. Industrial robotics and factory automation further accelerate adoption, as they require real-time decision-making and precise control enabled by advanced SoCs.
Market Drivers
ADAS Integration in Automotive Systems
The automotive sector is increasingly implementing SoCs to support ADAS, autonomous driving features, and next-generation infotainment systems. Modern vehicles demand high-performance processors capable of handling sensor inputs, HD video, navigation, and AI workflows.
Recent developments highlight this shift:
As automakers move toward software-defined vehicles, SoCs will play a key role in unifying powertrain, safety, and entertainment systems.
Market Restraints
High manufacturing costs remain a major challenge. Designing advanced SoCs requires significant investment in R&D, nanometer-based fabrication, specialized expertise, and complex tooling. Rapid technological evolution also shortens product lifecycles, forcing companies to frequently invest in next-generation solutions to stay competitive. These financial and technical pressures create barriers for new market entrants.
Market Opportunities
The rising penetration of AI smartphones, AI PCs, and smart consumer electronics presents significant growth potential. AI-optimized SoCs equipped with NPUs and ML accelerators are gaining momentum. For instance, Qualcomm launched the Snapdragon 8s Gen 3 in 2024, providing enhanced on-device generative AI capabilities and advanced performance for mobile devices.
Segmentation Highlights
North America dominated in 2024 with USD 43.74 billion, led by strong semiconductor innovation, AI adoption, and advanced consumer electronics demand. The U.S. is expected to reach USD 28.58 billion in 2025.
Asia Pacific is projected to be the second-largest region with USD 43.54 billion in 2025, bolstered by manufacturing hubs in China, Taiwan, South Korea, and Japan. China alone is expected to reach USD 10.77 billion in 2025.
Europe will be the third-largest region (USD 25.83 billion in 2025) due to automotive electrification, Industry 4.0, and smart manufacturing expansion.
Conclusion
Growing from USD 134.09 billion in 2024 to USD 269.83 billion by 2032, the system-on-chip market is set for remarkable expansion. With surging demand for AI-driven devices, connected technologies, autonomous systems, and high-performance electronics, SoCs will remain at the core of global technological advancement.
Segmentation By Core Count
By Application
By Region
Companies Profiled in the Report Broadcom, Inc. (U.S.), MediaTek Inc. (Taiwan), Samsung (South Korea), Apple Inc. (U.S.), Qualcomm Technologies, Inc. (U.S.), Advanced Micro Devices, Inc. (U.S.), Intel Corporation (U.S.), NVIDIA Corporation (U.S.), NXP Semiconductor N.V. (Netherlands), and Micron Technology, Inc. (U.S.)