Global System-on-Chip Market Size, Share, Growth Analysis, By Type(Digital SoCs, mixed-signal SoCs), By End user(Consumer electronics, automotive), By Applications(Smartphones and tablets, automotive electronics) - Industry Forecast 2024-2031

Global System-on-Chip Market size was valued at USD 151.80 billion in 2022 and is poised to grow from USD 164.10 billion in 2023 to USD 305.99 billion by 2031, growing at a CAGR of 8.1% during the forecast period (2024-2031).

The global system-on-a-chip (SoC) market is a vibrant, quickly growing sector of the economy that is essential to the development of numerous technological fields. Integrated circuits, or SoCs, are made up of several parts that are combined into a single chip, including peripherals, memory, and CPUs. Because of this integration, SoCs can perform better, use less power, and be smaller, which makes them ideal for a wide range of applications, including tablets, smartphones, automobile electronics, Internet of Things devices, and more. The SoC market exists to meet the increasing need for sophisticated, multipurpose electronics. SoCs are becoming the main component of contemporary electronics due to the growth of linked devices and the growing demand for processing power and seamless communication. They enhance downsizing, allow for the smooth integration of several functionalities, and offer affordable solutions for a range of industries.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global System-on-Chip Market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the Market size includes the following details: The key players in the Market were identified through secondary research, and their Market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top Market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global System-on-Chip Market Segmental Analysis

Global System-on-Chip Market is segmented on the basis of type, end user, applications, and region. By type, the market is segmented into digital SoCs, mixed-signal SoCs, and analog SoCs. By end user, the market is segmented into consumer electronics, automotive, healthcare, industrial, aerospace and defense, and others. By applications, the market is segmented into smartphones and tablets, automotive electronics, consumer electronics, industrial automation, healthcare devices, and others. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

Drivers of the Global System-on-Chip Market

One major factor propelling the SoC industry is the increasing demand for smartphones and other mobile devices worldwide. Devices with cutting-edge functionality, powerful computing, and effective power management are what consumers look for. By combining several parts into one chip, SoCs are essential for fulfilling these requirements and providing smooth user experiences. For example, the Snapdragon line of SoCs from Qualcomm, which is present in many top smartphones, has strong processors, good graphics, and networking functionality.

Restraints in the Global System-on-Chip Market

The intricate process of designing and producing System-on-a-Chip (SoC) poses a notable obstacle to the market. Creating and manufacturing SoCs requires complex fabrication methods, layout design, and circuitry, which calls for large R&D expenditures and specialist knowledge. Manufacturers may face difficulties as a result of this intricacy, which may hinder their ability to launch new goods swiftly. Furthermore, smaller market participants may find it difficult to compete due to the high prices of sophisticated fabrication technologies such nanoscale techniques.

Market Trends of the Global System-on-Chip Market

One of the market's most noticeable trends is the incorporation of AI capabilities into SoCs. AI is revolutionizing a number of industries, including consumer electronics, automotive, and healthcare. On-device AI computations are made possible by SoCs with specialized AI accelerators and neural processing units (NPUs), which result in AI-driven apps that operate more quickly and effectively. On iPhones and iPads, for instance, tasks like picture recognition, natural language processing, and augmented reality are made easier by Apple's A-series CPUs, which come equipped with the Neural Engine.