Why System on Module Market are Booming So Rapidly? Industry in-Depth Analysis with Growing Trends || Microchip Technology Inc., National Instruments, Toradex, VIA Technologies, Inc., Kontron, Eurotech, Axiomtek

The Europe system on module market is lately witnessing rapid growth trends due to the soaring demand for powerful & efficient embedded systems in industrial automation. According to the International Federation of Robotics (IFR) reports, Germany is one of the most automated countries in Europe - the nation ranked 3rd worldwide in 2016, with 309 robot units installed per 10,000 employees in the manufacturing sector.

Further, in 2016, the country's operational stock and annual supply of industrial robots were pegged at 41% and 36% respectively. Also, between 2018 and 2020, the annual supply in Germany is anticipated to grow by at least 5% on an average per year due to the increasing demand for robots in the region's thriving automotive and industrial sectors. Aided by the expensive proportion of industrial automation in other European economies such as France, Sweden, Denmark, Italy, and Spain, the region is bound to experience a substantial demand for SoM installations. In consequence, this would majorly impact the commercialization matrix of the Europe system on module market.

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With multiple embedded wireless solutions like 802.11a/b/g/n/ac and Bluetooth, the product can offer cellular connectivity and mobility as well as offer device security for connected IoT applications. With such profound features, manufacturers are increasingly opting for system on modules (SoM) to significantly reduce development efforts and time to market (TTM) by eliminating the challenges associated with designing boards with complex microprocessor, further offering a more reliable and cost-effective embedded platform for building end-products.

Designed by British semiconductor giant ARM Holdings, ARM is one of the major processor architectures used for SoM modules. In an era of proliferating IoT and industrial automation sectors, the processor holds a significant market share and is projected to exhibit high growth rates in the coming years. It offers a wide range of features like low cost compared to other processors in the system on module market, higher battery life, faster operational speed, and compatibility for numerous end-user application.

Moreover, rapid technological advancements and growing demands have led manufacturers to develop newer versions of SoM offerings. For instance, in 2018, chip designer Arm unveiled its new Cortex-A76 CPU, claiming it would deliver 35% better performance than its predecessor. Advances such as this will enable development of more power-efficient end-user products, supplementing system on module market size.

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Escalating demand for automated technologies in operations like assembly, manufacturing, logistics and supply chain support has led to the widespread integration of embedded computing solutions. Additionally, the rising demand for energy-efficient, smart electronic products for automation applications has led to rapid consumption of embedded systems, in turn driving the system on module market trends.

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