by The Global System On A Chip (Soc) Market is estimated to be valued at US$ 140.99 Bn in 2023 and is expected to exhibit a CAGR of 8% over the forecast period 2022 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
A system on a chip (SoC) is an integrated circuit that integrates all components of a computer or other electronic system into a single chip. It may contain digital, analog, mixed-signal, and often radio-frequency functions, along with memory and processing in a single chip. SoC reduces cost, power consumption, and space required for electronic devices. With growing popularity of smartphones, tablets and other portable consumer electronic devices, manufacturers focus on decreasing device size and increasing battery life which drives demand for SoC.
Market key trends:
Adoption of artificial intelligence (AI) and Internet of Things (IoT) is one of the major trends witnessed in the SoC market. AI capabilities are being integrated into SoCs as it requires high processing power. For instance, NXP Semiconductors offers NXP i.MX 8M Plus applications processors with integrated AI acceleration. It features an NPU (Neural Processing Unit) and DSP (Digital Signal Processor) optimized for computer vision and voice applications. Similarly, growing penetration of IoT technologies has increased need for low power managing SoCs that can perform connectivity as well as processing functions. Toshiba has launched TC35679XBG SoC that combines applications processing and communications in a compact package suitable for various IoT devices including smart home appliances. Integration of AI and connectivity protocols in a single chip provides significant performance and power advantages for emerging applications.
Porter’s Analysis:
Threat of new entrants: The entry of new players is moderate due to the requirement of high initial investments and technical expertise.
Bargaining power of buyers: Buyers have high bargaining power due to availability of substitutes and undifferentiated products.
Bargaining power of suppliers: A few large vendors dominate the supply market, giving them significant bargaining power over customers.
Threat of new substitutes: Threat of substitutes is moderate as technological advancements have increased performance of existing substitutes like microcontrollers.
Competitive rivalry: The competitive rivalry is high due intense competition among established players to gain market share through innovations.
Key Takeaways
The Global System On A Chip (Soc) Market is expected to witness high growth, exhibiting CAGR of 8% over the forecast period, due to increasing demand for consumer electronics. The Asia Pacific region dominates the SoC market with the largest market share owing to significant presence of manufacturers in countries like China, Taiwan and South Korea.
The global system on a chip (SoC) market size for 2022 was US$ 140.99 Bn. According to estimates, the market size is projected to reach US$ 265 Bn by 2030 as SoCs offer reduced product size and complexity along with improved performance. Regional analysis indicates that Asia Pacific accounted for over 45% of the global SoC market share in 2022 led by countries such as China, South Korea and Taiwan. China alone contributed to more than 30% of global SoC demand due to vigorous development of consumer electronics sector in the country.
Key players operating in the system on a chip (SoC) market are Apple Inc., Huawei Technologies Co. Ltd., MediaTek Inc., Qualcomm Technologies Inc., Samsung Electronics CO. LTD., Intel Corporation, STMicroelectronics N.V., Toshiba Corporation, NXP Semiconductors N.V., and Broadcom Inc. Major players are focused on advancing their process node capabilities and incorporating artificial intelligence functions in SoCs to strengthen their market position.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc.
