February 29, 2024
System On A Chip (Soc) Market

Rising Demand For Portable Electronic Devices Drives The System On A Chip (Soc) Market

A system on a chip or SoC refers to an integrated circuit that integrates all the components of a computer or other electronic system into a single chip. It typically includes a central processing unit (CPU), memory, input/output ports and secondary storage like Flash memory all fabricated on a single substrate. SoCs reduce the size and cost of electronics devices and provide improved performance by allowing tightly coupled hardware and software components. Common applications include smartphones, tablets, digital TVs, networking devices and more. The miniaturization of electronics components and the need for increased portability of electronic devices has propelled the demand for SoCs. Their capabilities allow device manufacturers to pack many functions previously requiring multiple chips into a single small package with lower power usage.

The global System on a Chip (SoC) Market is estimated to be valued at US$ 189.45 Bn in 2024 and is expected to exhibit a CAGR of 12% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends spurring growth in the SoC market is the shift to integrated 5G modems. The increasing adoption of 5G technologies globally is prompting semiconductor companies to integrate 5G modems into their upcoming SoC designs for mobile devices to support faster data speeds and low latency connectivity. This will reduce size and cost for OEMs while improving performance. Another major trend is the integration of artificial intelligence capabilities. Major SoC vendors are collaborating with AI chip companies and designing AI processing engines and accelerators directly into their SoC products to handle computer vision, natural language processing and other tasks on-device without using cloud resources. This makes AI-enabled features available even in low-end devices and improves user experience and functionality.

Porter’s Analysis

Threat of new entrants: High barriers to entry in SoC manufacturing due to massive capital investments required for fabrication facilities.

Bargaining power of buyers: Moderate bargaining power due to availability of alternatives in the market but customers prefer customization.

Bargaining power of suppliers: Low as SoC manufacturing requires complex process and few companies have capabilities for integrated circuit design.

Threat of new substitutes: Low as SoCs offer performance and cost benefits over substitutes.

Competitive rivalry: High as major players continuously invest in R&D and compete on innovation.

Key Takeaways

The Global System On A Chip (Soc) Market Demand is expected to witness high growth.

Regional analysis comprises the Asia Pacific region dominating the SoC market currently with the largest share due to presence of key players like Honor Technology, Inc. in countries like China, Taiwan.

Key players operating in the SoC market are Honor Technology, Inc., Vesta Healthcare (Hometeam Care, Inc.), HomeHero, Inc. and Seniorlink, Inc. Honor Technology has held the leading position in SoC manufacturing with its advanced fabrication facilities in Asia. HomeHero and Seniorlink are also expanding their SoC offerings for healthcare applications

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it