Smartphone SoC Market to Reach US$ 2.8 Billion by 2033, Reports Persistence Market Research

The global smartphone system on chip (SoC) market is poised for explosive growth, with projections indicating a rise from US$ 542.0 million in 2023 to a staggering US$ 2.8 billion by 2033. This growth, at a robust CAGR of 18.0%, underscores the increasing reliance on smartphones for day-to-day tasks, entertainment, and communication, coupled with technological innovation in mobile processors.

A major catalyst for market expansion is the soaring demand for feature-rich smartphones with enhanced processing power, graphics capabilities, and energy efficiency. The integration of AI functionalities, 5G support, and power optimization into SoCs is transforming how smartphones perform, especially in areas like gaming, augmented reality (AR), and photography. Among the different segments, the Android operating system currently holds the largest market share, driven by its vast global user base and widespread OEM adoption. Regionally, Asia Pacific leads the market, thanks to the strong manufacturing base, booming smartphone usage in countries like China and India, and aggressive investments in 5G infrastructure.

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Key Highlights from the Report

✦ The smartphone SoC market is expected to grow at a CAGR of 18.0% between 2023 and 2033.
✦ Asia Pacific is projected to remain the leading regional market through 2033.
✦ Android operating system continues to dominate the SoC ecosystem with a CAGR of 17.6%.
✦ China's SoC market is growing rapidly due to increasing 5G handset adoption.
✦ Gaming and high-performance applications are pushing demand for advanced SoCs.
✦ USA's SoC market is expanding at a CAGR of 16.7% due to rising AI and data processing needs.

Market Segmentation Analysis

The smartphone system on chip (SoC) market can be segmented based on core type and operating system. By core type, the market includes dual core, quad core, octa core, and others. Octa-core SoCs are increasingly becoming the standard in premium and mid-range smartphones due to their ability to handle multitasking, gaming, and AI-based applications efficiently. Quad-core SoCs still find relevance in entry-level and budget-friendly smartphones, particularly in emerging markets.

When examined through the lens of operating systems, Android holds the lion's share due to its open-source nature, cost-effective hardware compatibility, and a wide array of smartphone models using the OS globally. iOS-based SoCs, developed exclusively by Apple, offer premium integration between hardware and software. While iOS contributes less to market volume, it remains significant in terms of innovation and per-unit value. Windows-based SoCs have largely faded from the consumer smartphone market, maintaining only a niche presence.

Regional Insights

The Asia Pacific region, particularly China, South Korea, and India, is dominating the smartphone SoC market. This region benefits from an expansive manufacturing base, tech-savvy consumers, and rapid adoption of 5G and AI technologies. China, with a projected CAGR of 19.0%, is a major contributor due to its massive domestic smartphone consumption and leading 5G deployment. South Korea, home to tech giants like Samsung, is making significant strides with investments in 5G chipsets and R&D.

North America, led by the USA, is another high-value market owing to its early adoption of AI technologies and premium smartphones. The country is projected to reach US$ 910 million by 2033, driven by demand for AI-integrated SoCs that support advanced functionalities like real-time processing and pattern recognition.

Europe, with countries like the UK and Germany at the forefront, is witnessing a moderate yet steady growth fueled by technological collaborations and the emergence of next-gen mobile devices. The UK market alone is expected to reach US$ 131.7 million by 2033, boosted by companies investing in advanced GPUs and integrated chipsets.

Market Drivers

Several key factors are driving the growth of the smartphone system on chip (SoC) market. First, the widespread penetration of smartphones across both developed and developing economies is pushing demand for highly integrated chipsets. Consumers now expect features such as fast processing, seamless gaming, high-resolution cameras, and long battery life-all of which are dependent on advanced SoCs.

Secondly, the rise in mobile gaming and streaming applications has created demand for SoCs with superior graphics and thermal management. Gamers, particularly in the millennial and Gen Z demographics, are seeking lag-free experiences, pushing OEMs to integrate high-performance SoCs. Furthermore, the evolution of 5G connectivity and the integration of AI and machine learning capabilities in smartphones is fueling the development of SoCs with powerful neural processing units (NPUs).

Market Restraints

Despite strong growth prospects, the smartphone SoC market faces a few headwinds. One of the main restraints is the influx of counterfeit and low-quality chips, which not only affect brand credibility but also pose security and performance risks. Additionally, high costs associated with R&D and chip manufacturing can limit innovation, especially for smaller players.

Another challenge is the complexity of integrating multiple functions-such as modem, GPU, CPU, and AI accelerators-into a single chip while maintaining energy efficiency and thermal management. These technical hurdles can slow down time-to-market for new SoC models and increase production costs.

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Market Opportunities

There are ample opportunities for growth in the smartphone SoC market. With AI and machine learning becoming core to smartphone functionality, there is a rising need for specialized SoCs that can process AI tasks directly on the device (edge AI). This opens avenues for new chip architectures and designs.

Another promising area is the integration of SoCs into foldable and modular smartphones, a rapidly emerging category in the mobile device space. Furthermore, the proliferation of IoT devices that use similar chip architectures offers SoC manufacturers a chance to expand their product lines into adjacent markets.

Partnerships between smartphone manufacturers and chipset designers-like the Qualcomm-Samsung collaboration-also pave the way for co-innovated, high-performance SoCs tailored to user demands, particularly in premium device segments.

Reasons to Buy the Report

✔ Get a detailed understanding of the global smartphone SoC market dynamics and key drivers.
✔ Identify growth hotspots and regional opportunities shaping the industry through 2033.
✔ Evaluate the competitive landscape and track recent developments by top market players.
✔ Understand the segmentation by core type and operating system to align product strategies.
✔ Gain insights into market challenges, restraints, and investment opportunities.

Company Insights

The competitive landscape of the smartphone system on chip (SoC) market is fragmented, with both global giants and regional players vying for dominance. Companies are focusing on launching high-performance, energy-efficient, and AI-integrated chipsets to cater to next-generation smartphone requirements.

• Apple
• Qualcomm
• Allwinner Technology
• Actions Semiconductor Ltd.
• Huawei
• Samsung
• Intel
• NXP Semiconductors
• MediaTek
• Analog Devices
• Texas Instruments

Recent Developments:

In December 2022, Qualcomm named Samsung as the official smartphone partner for the Snapdragon Pro Series, signaling deeper collaboration in high-performance mobile SoCs.

In the same month, MediaTek unveiled the Dimensity 8200 5G chipset with a 4nm architecture, designed for high-efficiency performance in premium gaming and connectivity.

Conclusion

The smartphone system on chip (SoC) market is on a high-growth trajectory, fueled by the increasing demand for feature-rich smartphones, advancements in 5G and AI technologies, and the growing appeal of mobile gaming and immersive applications. As smartphone users seek faster, smarter, and more efficient devices, SoC manufacturers have an incredible opportunity to push the boundaries of innovation.

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About Persistence Market Research:

At Persistence Market Research, we specialize in creating research studies that serve as strategic tools for driving business growth. Established as a proprietary firm in 2012, we have evolved into a registered company in England and Wales in 2023 under the name Persistence Research & Consultancy Services Ltd. With a solid foundation, we have completed over 3600 custom and syndicate market research projects, and delivered more than 2700 projects for other leading market research companies' clients.

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