How big is the System On Chip Market?

The System On Chip Market size is expected to reach USD 172.65 billion in 2024 and grow at a CAGR of 8.01% to reach USD 253.80 billion by 2029. Read More

What is the current System On Chip Market size?

In 2024, the System On Chip Market size is expected to reach USD 172.65 billion. Read More

Who are the key players in System On Chip Market?

Broadcom Inc., Intel Corporation, MediaTek Inc., Microchip Technology Inc. and NXP Semiconductors NV are the major companies operating in the System On Chip Market. Read More

Which is the fastest growing region in System On Chip Market?

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029). Read More

Which region has the biggest share in System On Chip Market?

In 2024, the Asia Pacific accounts for the largest market share in System On Chip Market. Read More

What years does this System On Chip Market cover, and what was the market size in 2023?

In 2023, the System On Chip Market size was estimated at USD 159.85 billion. The report covers the System On Chip Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the System On Chip Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029. Read More

System On Chip (SoC) Market Trends

Market Trends of System On Chip (SoC) Industry

Consumer Electronics Segment to Occupy a Significant Share

The incorporation of SoCs facilitates improved efficiency, decreased energy usage, and compactness, rendering SoCs essential for numerous consumer electronics applications ranging from smartphones to various interconnected devices. Consumer electronics is projected to witness a significant demand for SoCs based on their application. This is primarily attributed to the increasing adoption of smartphones due to the growing disposable incomes of consumers.
Consumer electronics such as premium smartphones, intelligent speakers, tablets, wearables, and other devices extensively employ edge AI chips. These chips are specifically crafted to augment the computational capabilities and effectiveness of AI algorithms at the network's edge, enabling quicker and real-time decision-making capabilities. The rising demand for AI chip technology is anticipated to propel market expansion throughout the projected timeframe. Furthermore, the escalating adoption of AI technology and the proliferation of IoT-connected consumer devices are poised to amplify the growth of the market.
Moreover, the market growth is primarily driven by the expanding presence of the internet and smartphone users, the widespread utilization of cloud computing and IoT-enabled platforms, and the extensive deployment of wireless sensors in smart infrastructure. As the market continues to witness a rise in the number of IoT and smart devices, the demand for SoC chips is also anticipated to grow at a comparable rate due to their diverse applications in these devices. As a result, several vendors in the market are constantly investing in introducing significant products catering to the rising demand for connectivity in consumer electronics.
The increasing investments in the consumer electronics industry across several countries are expected to enhance the market opportunities. Several governments across the world are constantly encouraging new investments into the country to set up electronics manufacturing facilities and aiming to enhance their production capabilities. The increasing mobile penetration, increasing internet connectivity, and the growing popularity of connected devices are expected to drive the growth of consumer electronics. Such significant capabilities preferred in several consumer electronics devices such as Mobile devices, PCs, Tablets, Audio Devices, and others are expected to drive the market.
As stated by Ericsson, the worldwide tally of smartphone mobile network subscriptions came close to 6.4 billion in 2022 and is estimated to exceed 7.7 billion by 2028. It is worth mentioning that China, India, and the United States emerge as the countries with the most significant number of smartphone mobile network subscriptions. Ericsson's report emphasizes that although the sales reached a plateau in 2022, the increasing average selling price of smartphones is expected to strengthen the market in the coming years. These remarkable developments are set to enhance the market's prospects.

System on Chip (SoC) Market: Number of Smartphone Mobile Network Subscriptions Worldwide from 2019 to 2022, with Forecasts from 2023 to 2028, in Billions

Understand The Key Trends Shaping This Market

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Asia-Pacific Expected to Dominate the Market

The Asia-Pacific region is anticipated to dominate the market studied because it currently dominates the global semiconductor market, which is further supported by government policies. According to SIA, China, Japan, Taiwan, and South Korea account for about 75% of the world’s semiconductor production collectively, and other countries like Vietnam, Thailand, Malaysia, and Singapore also make significant contributions to the region’s market dominance.
With the increasing demand for technologically advanced devices in every industry, the demand for SoC devices in the market is expected to increase further. Furthermore, the increasing applications of a wide range of sensors in the automotive and smartphone market are expected to increase the demand for sensors further.
Furthermore, the government's Made in China 2025 initiative is helping to expand the power electronics market. Additionally, the industry is bringing in fresh funding for power electronics in the area. For instance, a significant manufacturer of wide-bandgap compound semiconductors, IIVI Incorporated, increased the size of its SiC wafer finishing manufacturing facility in China.
In line with this launch, the company aims to power its next-generation products for 5G build-out, including the next-generation 5G Compact Macro, baseband units, and Massive MIMO radios.