Market Is Estimated To Witness High Growth Owing To Increasing Demand For Integrated Chips And Growing Adoption Of IoT

 

 System on a Chip (SoC) Market

The 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 or SoC refers to integrating all the components of a computer or other electronic systems into a single integrated circuit. It integrates features like CPU, memory, I/O peripheral interfaces all into a single chip. SoCs are leveraged across various industries and products ranging from smartwatches, consumer electronics, smartphones, networking equipment, automotive electronics, industrial automation and more.

Market Dynamics:

The System on a Chip (SoC) Market is witnessing high growth owing to increasing demand for highly integrated chips from consumer electronics manufacturers as well as growing adoption of IoT (Internet of Things) solutions across industries. One of the major driver for increasing SoC adoption is to reduce system cost by integrating multiple components into a single chip. As standalone chips require additional external components, board space and assembly which adds to the overall system cost. SoCs helps address this by integrating various peripherals with core processor on a single die, thereby reducing cost significantly. Second major factor fueling the market growth is growing connected devices market with increasing IoT penetration. IoT requires low power integrated solutions to power small devices with extended battery life. SoCs enables development of low power IoT devices by integrating all critical components needed to connect, communicate and process data on a single chip with very low power consumption. This makes SoCs ideal for applications like smart home devices, industrial gateways, smart city infrastructure and more.

SWOT Analysis

Strength: System on a Chip (SoC) allows integration of all active digital and analog components onto a single integrated circuit. This reduces manufacturing cost and size by integrating a device's components onto a single chip. The high performance and low power consumption of SoC has increased its adoption in smartphones and other electronic devices.

Weakness: Developing a complex SoC requires heavy initial investment and expertise that is a challenge for new players. System level integration brings reliability issues as the entire system functionality depends on a single chip.

Opportunity: Growing demand for IoT devices and 5G technology will require highly integrated solutions. SoCs with enhanced performance, security and connectivity offer scope of development. Emerging applications in artificial intelligence, robotics, autonomous vehicles provide huge market opportunity.

Threats: Commoditization of basic SoC functionalities increases competition. Technology changes at a fast pace requiring continuous R&D investment. Dependence on limited semiconductor foundries increases supply chain risks.

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 energy efficient portable electronic devices with superior performance. Asia Pacific dominates the SoC market currently due to presence of large semiconductor foundries and manufacturers in countries like China, Taiwan and South Korea. North America is the second largest market for SoC due to huge demand from communication and consumer electronics sectors in the region.

Regional analysis: Asia Pacific region accounted for around 40% of the global SoC market share in 2022. Presence of leading foundries such as TSMC and manufacturing base of prominent manufacturers including Samsung, MediaTek and Huawei have made Asia Pacific the dominant as well as the fastest growing regional market.

Key players: 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.

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