by The global System on a Chip (SoC) Market is estimated to be valued at US$ 164.45 Bn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
A system on a chip or SoC refers to an integrated circuit that integrates the major components of an entire system into a single microchip. These components typically include a central processing unit (CPU), memory, input/output ports and various digital, analog, mixed signal and radio frequency (RF) functions. SoCs are majorly adopted by the smartphone, consumer electronics, automotive and infrastructure sectors. Their key advantages include lower power consumption, reduced size, improved performance and lower production costs. They allow seamless integration of multiple functionalities in applications like wearables, IoT devices and connected automobiles.
Market key trends:
One of the major trends driving the SoC market growth is the increasing adoption in autonomous vehicles. SoCs play a crucial role by integrating the computing power required for autonomous driving functionalities like sensing, navigation, decision making and vehicle control into a single chip solution. This helps automakers achieve price sensitive mass production of cars with self-driving capabilities. Several companies are developing advanced SoC platforms optimized for autonomous driving systems that can process data from multiple sensors simultaneously and support advanced driver-assistance features. The commercialization of autonomous vehicles over the coming decade is expected to majorly boost the demand for high-performance automotive SoCs.
Porter’s Analysis
Threat of new entrants: Low capital requirements and availability of design tools have lowered the barriers to entry in the SoC market. However, large customers prefer dealing with established players for support.
Bargaining power of buyers: Large OEMs have significant bargaining power as they can contract directly with OSATs and IDMs for SoC design. For commodity SoCs, buyers can easily switch between vendors.
Bargaining power of suppliers: Integrated device manufacturers (IDMs) hold major bargaining power as OEMs rely on a few large suppliers for specialized SoC designs. The dependence on specialized equipment providers also gives them power.
Threat of new substitutes: Emerging technologies like edge/fog computing and ML/AI chips pose a threat, as they can process data locally without cloud connectivity.
Competitive rivalry: Intense competition exists among dominant vendors to build powerful and power-efficient SoC solutions for smartphones, PCs, automotive, and IoT.
Key Takeaways
The Global System On A Chip (Soc) Market size is expected to witness high growth, exhibiting CAGR of 8.0% over the forecast period, due to increasing demand for compact and integrated semiconductor solutions from smartphone and automotive industries.
Regionally, Asia Pacific dominates the SoC market and is expected to continue its dominance during the forecast period. This is owing to the presence of leading semiconductor foundries, fabless design companies and IDMs in countries such as Taiwan, South Korea, and China.
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. Apple designs most of its SoCs in-house, focusing on CPUs and modem connectivity. Qualcomm is a major supplier of cellular modem SoCs for Android devices. MediaTek focuses on connectivity, display, and audio SoCs for smartphones and tablets.
*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, chemicals and materials, defense and aerospace, consumer goods, etc.
