PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930209
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930209
The global system-on-chip (SoC) market is witnessing rapid growth as electronic devices increasingly demand compact, high-performance, and power-efficient solutions. The market was valued at USD 144.23 billion in 2025 and is projected to grow from USD 155.76 billion in 2026 to USD 317.66 billion by 2034, reflecting a CAGR of 9.30% during the forecast period. SoCs integrate multiple components of an electronic system-such as CPU, GPU, memory interfaces, input/output devices, and radio modems-on a single microchip, enabling the development of advanced consumer electronics, automotive systems, and industrial devices.
Impact of Generative AI
Generative AI is increasingly influencing the SoC market by driving demand for AI-optimized chips and transforming the design process. Companies like NVIDIA have introduced the GeForce RTX 50 Series powered by the Blackwell AI chip, offering enhanced graphics and AI computation. Generative AI tools assist chip designers in automating repetitive tasks, optimizing designs, and predicting performance outcomes, reducing development costs and accelerating time-to-market. These developments are expected to fuel market expansion.
Market Drivers
The rising adoption of Advanced Driver Assistance Systems (ADAS) in vehicles is a major growth driver for SoCs. SoCs consolidate multiple functions into a single chip, providing robust AI processing, faster CPU performance, and energy efficiency essential for autonomous driving and infotainment systems. For example, in September 2024, Renesas Electronics expanded its R-Car automotive SoCs for entry-level ADAS, while January 2024 saw Qualcomm and BOSCH launch a central vehicle computer capable of running ADAS and infotainment functions on a single chip.
Additionally, the increasing demand for smart, connected devices and IoT applications drives the adoption of SoCs in consumer electronics, industrial automation, and robotics. These chips enable on-device AI processing, conserving battery life and ensuring privacy in low-connectivity environments.
Market Restraints
High design and manufacturing costs pose significant challenges for the SoC market. Developing advanced SoCs requires substantial R&D investment, specialized expertise, and advanced fabrication technologies such as nanometer-scale semiconductors. Moreover, rapid technological evolution leads to shorter product lifecycles, pressuring companies to release innovative chips continually, which may limit market entry for smaller players.
Market Opportunities
The growing penetration of AI in smartphones, PCs, and smart TVs creates opportunities for AI-optimized SoCs. Incorporating NPUs (Neural Processing Units) enables efficient handling of AI workloads, including computer vision, natural language processing, and machine learning, particularly in edge computing devices. For instance, in March 2024, Qualcomm launched the Snapdragon 8s Gen 3 platform, offering enhanced AI capabilities for mobile applications, gaming, and photography.
Competitive Landscape
Key industry players include Broadcom, MediaTek, Samsung, Apple, Qualcomm, AMD, Intel, NVIDIA, Toshiba, TSMC, Micron, HiSilicon, Maxim Integrated, and NXP Semiconductors. Companies are adopting mergers, acquisitions, and strategic collaborations to expand global presence and develop innovative SoCs tailored for automotive, consumer, and industrial applications.
Recent Developments:
Conclusion
The system-on-chip market is projected to witness robust growth from 2025 to 2034, reaching USD 317.66 billion by the end of the period. Adoption is driven by AI integration, automotive innovations, IoT expansion, and high-performance consumer electronics. Increasing investments in R&D, generative AI-enabled design, and strategic partnerships will continue to accelerate the development of energy-efficient, high-performance SoCs, enabling diverse applications across industries and regions.
Segmentation By Core Count, By Application, and By Region
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.)