The Global "System-on-Chip Market" is expected to grow at a CAGR of 8.3% during the forecasting period (2022-2029).
A System-on-Chip (SoC) is an integrated circuit that integrates all components of a computer or other electronic system. These components typically (but not always) include a central processing unit (CPU), memory, input/output ports, and secondary storage – all on a single substrate or microchip, the size of a coin.
It may contain digital, analog, mixed-signal, and often radio frequency signal processing functions, depending on the application. As they are integrated on a single substrate, SoCs consume much less power and take up much less area than multi-chip designs with equivalent functionality. Because of this, SoCs are very common in mobile computing (such as in Smartphones) and edge computing markets. Systems on chip are commonly used in embedded systems and the Internet of Things. The growing demand for smart electronics and development of new technologies will be major factor driving the global SoC market during the forecast period.
The report covers all the major trends and drivers playing a vital role in the growth of the global SoC market. The global SoC market has been segmented by type, by application, and by region.
The global SOC market growth is primarily driven by the growing technology advancements like greater connectivity and automation in the vehicle are placing increasing focus and value on the Human Machine Interface. Automotive manufacturers are increasingly developing automobiles with integrated infotainment systems – systems that provide a combination of entertainment and information for an enhanced in-vehicle experience. Increasing vehicle production and rising sales of electric vehicles (EVs) will be driving the market for SoC in the following period.
Moreover, increased demand for consumer electronics like TV, mobile phones, tablets, and others. The growing disposable income of people all around the world is the major reason for the rise in the sales of consumer electronics. Particularly increasing smart devices (like mobile phones, smartwatches, smart cameras, and others) penetration across the globe will be the major driver of S0C market in the forecast period.
By Application, the global SoC market is segmented Consumer Electronics, Automotive, IT and Telecommunication, and Others. In 2018, Consumer Electronics segment accounted for the majority share in the market and is expected to witness highest growth rate during the forecast period. The increasing requirements for compact and scalable ICs and the growing penetration of smartphones and other electronic devices are some of the significant factors boosting the demand for SoC in consumer electronics applications. SOC revenue is mainly driven by the increasing popularity of smartphones, smart TVs, 4K ultra-HD TVs, a preference for large displays, and curved OLEDs.
By type, the global SoC Market is segmented into Digital, Analog, and Mixed-signal. The significant impacting factors in the system-on-chip market size include compact nature, surge in demand for smart and power-efficient electronic devices, and rising adoption of IoT. The SoC market is also influenced by high initial cost of design & development and maintenance, rising demand for compact and scalable ICs in global electronics industry. Each of these factors would have a definite impact on the system-on-chip market during the forecast period.
By geography, the global SoC market is segmented into North America, Asia-Pacific (APAC), Europe, South America, and the Middle East and Africa (MEA).
In 2018, Asia Pacific SoC market segment accounted for the majority share in the global market owing to the presence of a large number of companies in this region and growing demand for consumer electronics such as smartphones, tablets and rising demand for automobiles in countries like China, Japan, South Korea, and India.
In addition, growing investments in communication network infrastructure coupled with the rising adoption of industrial automation in the region will fuel APAC SoC market growth.
In North America, the high presence of SoC equipment manufacturers across the region, such as Qualcomm and Apple, as well as increasing R&D investment by the government & non-government organizations are the factors driving the North America SoC market. United States dominates the North America SoC market owing to growing production of consumer electronics to meet the growing consumer demand for electronic products. The trade war between United States and global suppliers for IC materials in China are hindering the market growth of SoC market in the region.
Global SoC Market is a fragmented market with the presence of various global and regional players in the market. The market players are focusing on expanding through strategic interventions, such as acquisitions, and collaborations in the global SoC market. Some major players include Apple Inc., Broadcom Limited, Infineon Technologies, Intel Corporation, Qualcomm Inc., Samsung Electronics Co. Ltd., STMicroelectronics N.V., Taiwan Semiconductor Manufacturing Co. Ltd., Toshiba Corporation, MediaTek Inc., Maxim Integrated Products, Inc., Microchip Technology Inc., Texas Instruments, ON Semiconductor, and others.
In 2018, Intel unveiled the Xeon D-2100 processor, to help customers who want to move computing to the edge. Computing at the edge has some unique space and power requirements that Intel has tried to address with this announcement. For instance, it provides a stand-alone system on a chip (SoC). This means everything customer need is built into the chip including computing, networking, and storage.
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