System Basis Chip Market Outlook: $62 Billion by 2033 - Persistence Market Research

The System Basis Chip (SBC) market is witnessing robust growth, propelled by technological advancements and the increasing reliance on these chips in automotive, industrial, and consumer electronics. Persistence Market Research estimates that the global SBC market will grow from US$ 28.4 billion in 2023 to US$ 62 billion by 2033, growing at a compound annual growth rate (CAGR) of 8.1%. The applications of these chips are broad, ranging from advanced driver-assistance systems (ADAS) and automated driving to infotainment systems and vehicle connectivity. This article delves into the key trends, market dynamics, and regional insights that shape the system basis chip market.

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Overview of the System Basis Chip Market

The system basis chip (SBC) is a semiconductor device that integrates multiple essential components into a single system, optimizing space, power, and performance. These chips perform critical functions such as power management, voltage regulation, communication interface, and safety management, making them indispensable in automotive electronics, IoT devices, and industrial systems. According to Persistence Market Research, the market for SBCs is expanding due to increased vehicle production, rising demand for electrification and autonomy, and advancements in connectivity.

The rapid adoption of SBCs in automotive systems, particularly for safety and energy efficiency applications, is a major growth driver. In addition, the demand for advanced infotainment systems, autonomous vehicles, and smart city infrastructure is pushing SBC manufacturers to innovate.

Key Market Statistics

Market Size (2023): US$ 28.4 billion
Projected Market Size (2033): US$ 62 billion
CAGR: 8.1% (2023-2033)

Leading Segment and Geographical Region

The automotive segment holds the lion's share of the SBC market due to the increasing demand for electronic components in vehicles, particularly in powertrain systems, safety features, and infotainment. In terms of geographical dominance, North America is expected to remain the leading market, growing at a rate of 24.2% from 2023 to 2033. This growth is driven by strong automotive and semiconductor industries, alongside the increasing adoption of electric and autonomous vehicles.

Key Highlights from the Report

➤ The global system basis chip market is poised to grow at a CAGR of 8.1% from 2023 to 2033.
➤ The automotive industry is the primary end-user of system basis chips.
➤ North America leads the global market in terms of growth rate and market share.
➤ The increasing demand for electric and hybrid vehicles is expected to drive market expansion.
➤ The shift towards autonomous driving technologies presents new opportunities for SBC manufacturers.
➤ High demand for IoT and smart city infrastructure is boosting the SBC market.

Market Segmentation

The system basis chip market can be segmented into product types, end-users, and applications. These segments help identify specific growth opportunities and areas of innovation.

Product Type
System basis chips come in various configurations depending on the complexity and performance requirements of the system in which they are deployed. The power management segment is a key contributor to market growth, followed by communication interface chips, which are crucial for vehicle telematics and infotainment systems. As vehicles become more sophisticated, the demand for multi-functional SBCs that can handle power, communication, and safety systems has skyrocketed.

End-User Industry
The primary end-users of system basis chips are in the automotive, consumer electronics, and industrial sectors. In the automotive industry, SBCs are used in advanced driver assistance systems (ADAS), electronic control units (ECUs), and vehicle electrification. The rise of electric vehicles (EVs) and autonomous vehicles (AVs) has led to a surge in demand for SBCs. In consumer electronics, SBCs are integral in IoT devices and mobile gadgets, while the industrial sector relies on them for smart factory systems and automation controls.

Regional Insights

North America
In North America, the United States is the largest market for system basis chips, with sales expected to reach US$ 8.7 billion by 2033. The strong automotive industry, rapid adoption of electric vehicles, and advancements in AI technologies are driving SBC demand. The region's technological infrastructure supports the development of automated and connected vehicle systems, where SBCs are crucial.

Asia Pacific
Asia Pacific is witnessing a significant rise in SBC adoption, particularly in China, where the market is expected to grow at 9.6% CAGR. This growth is attributed to the domestic semiconductor industry, government initiatives, and an increasing demand for electronic products. With China's push to reduce its reliance on foreign chips through initiatives like "Made in China 2025," SBC adoption is expected to remain strong in the region.

Market Drivers

Technological Advancements in Vehicle Electronics
The automotive sector is a major driver of the system basis chip market. ADAS, automated driving, infotainment systems, and electrification require advanced SBCs to handle various electronic functions. As vehicle production increases globally, the demand for SBCs in automotive applications, such as powertrain systems, safety features, and body electronics, is growing.

Rise of IoT and Smart Cities
The growing Internet of Things (IoT) and the development of smart cities are also driving the SBC market. SBCs are integral to various IoT devices, such as smart meters, wearables, security systems, and smart appliances. These chips are required to provide low power consumption, high-performance processing, and seamless communication within smart environments.

Increased Demand for Electric and Autonomous Vehicles
With the rise of electric vehicles (EVs) and autonomous vehicles (AVs), there is an increasing demand for high-performance SBCs that can manage the complex electronic systems in these vehicles. From battery management systems to vehicle control modules, SBCs are essential for optimizing power usage, safety, and connectivity.

Market Restraints

High Cost of Advanced Chips
While demand is growing, the high cost of advanced SBC technology can be a limiting factor, particularly for small and medium-sized companies. The need for specialized manufacturing processes and advanced semiconductor fabs contributes to the overall cost. These costs can be prohibitive for certain regions and industries, which may delay adoption.

Supply Chain Disruptions
The semiconductor industry has faced significant supply chain disruptions due to global factors like the COVID-19 pandemic, geopolitical tensions, and raw material shortages. These disruptions have affected the production and availability of system basis chips, causing delays and increased costs for manufacturers in multiple industries, including automotive and electronics.

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Market Opportunities

Adoption of AI and Edge Computing
The rapid growth of edge computing and AI applications presents an exciting opportunity for SBC manufacturers. AI chips are becoming increasingly necessary to process data at the edge of networks and devices, driving demand for SBCs. These chips offer advantages in low-power consumption and high computational capacity, making them ideal for applications in autonomous vehicles, smart devices, and AI-powered automation systems.

Advancements in Quantum Computing
Although still in its infancy, the rise of quantum computing could create new demand for quantum chips or qubits that perform high-complexity tasks. The development of SBCs tailored for quantum computing applications could open new revenue streams for manufacturers in the long term.

Reasons to Buy the Report

✔ Comprehensive market analysis covering size, share, and trends.
✔ In-depth segmentation by product type, end-user industry, and geography.
✔ Forecast data for 2023 to 2033, offering insights into growth opportunities.
✔ Detailed information on regional trends and demand patterns in major markets.
✔ Analysis of key players and their market strategies, partnerships, and technological innovations.

Company Insights

The system basis chip market is competitive, with several major players driving innovation and growth. Key players in the market include:

✦ NXP Semiconductors N.V.
✦ Infineon Technologies
✦ Texas Instruments Incorporated
✦ Robert Bosch GmbH
✦ STMicroelectronics N.V.
✦ Onsemi
✦ Microchip Technology
✦ Melexis N.V.
✦ Elmos Semiconductor AG

Recent Developments

Hilscher introduced the netX 90 System-on-Chip (SoC) in June 2023, enhancing industrial automation solutions with interconnectivity.

Marvell Semiconductor unveiled new single-chip Ethernet switches in June 2023, aimed at supporting next-generation vehicles with software-defined services.

The System Basis Chip Market is poised for significant growth, driven by advancements in automotive electronics, IoT, and AI technologies. As demand for electrification, autonomous driving, and smart devices increases, SBCs will continue to play a vital role in shaping the future of connectivity and performance. The market's growth is supported by regional demand, particularly in North America and Asia Pacific, with emerging technologies creating new opportunities for chip manufacturers worldwide.

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