Future of the System On Chip Market: Trends, Innovations, and Key Forecasts Through 2034

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System On Chip Market Size Growth Forecast: What to Expect by 2025?
In the last few years, the system on chip market has shown robust growth. Its size will expand from $152.46 billion in 2024 to $166.36 billion in 2025, at a compound annual growth rate (CAGR) of 9.1%. The observed growth during the historic period is in part due to developments in semiconductor technology, the mobile computing revolution, the Internet of Things (IoT) upswing, the emergence of wearable technology, and the evolution of automotive electronics.

How Will the System On Chip Market Size Evolve and Grow by 2029?
The market size of the system on chip is projected to witness robust expansion in the forthcoming years, reaching a height of $232.71 billion in 2029 with a compound annual growth rate (CAGR) of 8.8%. The surge during the forecast period is anticipated due to factors like 5g connectivity, the spread of edge computing, artificial intelligence at the edge, self-driven vehicles, along with the emergence of augmented reality (AR) and virtual reality (VR). The predicted period also foresees several trends like the integration of varied cores, heightened focus on security, customization and configurability, advancements in pack-making technologies, and the rise of domain-centric architectures.

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What Drivers Are Propelling the Growth of System On Chip Market Forward?
The growth of the system-on-chip market is anticipated to be propelled by the rising usage of smartphones. Smartphones are handheld electronic gadgets that merge the features of a mobile phone and a computer, providing internet access, communication capabilities, and a broad range of applications. The growing usage of smartphones can be attributed to their multifunctionality, enabling access to communication, information, entertainment, and productivity tools in a small, movable device. The integration of multiple electronic components, such as the processor, memory, and peripherals, onto a single chip by System on chip (SoC), enhances the performance and energy efficiency of the smartphone. For example, in April 2022, the Department of Telecommunications under the Vietnam Ministry of Information and Communications, a regulatory agency based in Vietnam, reported a total of 91.3 million smartphone subscribers in 2021, which rose by over 2 million at the end of March 2022, totaling 93.5 million subscribers. This is equivalent to 73.5% of the nation's adult population. Thus, the rising usage of smartphones is propelling the growth of the system-on-chip market.

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Which Emerging Trends Are Transforming the System On Chip Market in 2025?
Leading corporations in the system-on-chip market are investing in sophisticated technologies, including a systems foundry crafted specifically for AI, to tackle various industry needs. The term "Systems Foundry Designed for AI" alludes to a customized platform structured to streamline the development and roll-out of AI systems, employing exclusive tools and infrastructure. For instance, in February 2024, as reported by US tech firm Intel, it launched the very first systems foundry built for the AI epoch, signifying a major breakthrough in the semiconductor production industry. Unveiled at the Intel Foundry Direct Connect event, this endeavor is designed to cater to the growing demand for AI-centric chip designs with a holistic method amalgamating chip design, examination, and manufacturing facilities. Key enhancements include the initiation of 14A process technology, collaboration with major corporations such as Microsoft and Arm to augment design flows, and innovative packaging solutions like the embedded multi-die interconnect bridge (EMIB) technology.

What Are the Key Segments in the System On Chip Market?
The system on chip market covered in this report is segmented -

1) By Type: Digital System On Chips, Mixed-Signal System On Chips, Analog System On Chips
2) By Application: Home Appliances, Portable Electronic Devices, Advanced Driver Assistance Systems, Medical Devices, Radio-Frequency Devices, Power-Electronic Devices, Wired And Wireless Communication Devices, Wearable Devices, Other Applications
3) By End-Use Industry: Consumer Electronics, Automotive And Transportation, Information Technology (IT) And Telecommunication, Aerospace And Defense, Healthcare, Power And Utility, Other End Use Industries

Subsegments:
1) By Digital System On Chips: Microprocessors (MPUs), Digital Signal Processors (DSPs), Field Programmable Gate Arrays (FPGAs), Application-Specific Integrated Circuits (ASICs), System Control Units (SCUs)
2) By Mixed-Signal System On Chips: Analog-To-Digital Converters (ADC), Digital-To-Analog Converters (DAC), Radio Frequency (RF) Transceivers, Power Management Integrated Circuits (PMIC), Signal Processors With Both Analog And Digital Functionalities
3) By Analog System On Chips (ASoC): Amplifiers, Voltage Regulators, Power Management ICs (PMIC), Radio Frequency (RF) Systems, Sensors (Temperature, Pressure, Motion Sensors)

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Who Are the Key Players Shaping the System On Chip Market's Competitive Landscape?
Major companies operating in the system on chip market are Apple Inc., Samsung Electronics Co. Ltd., Huawei Technologies Co. Ltd., Sony Corporation, Taiwan Semiconductor Manufacturing Company Limited, Intel Corporation, Qualcomm, Broadcom Inc., Micron Technology Inc., NVIDIA Corporation, Toshiba Corporation, Advanced Micro Devices Inc., Texas Instruments Incorporated, MediaTek Inc., STMicroelectronics N.V., Infineon Technologies AG, NXP Semiconductors N.V., Renesas Electronics Corporation, onsemi, Marvell Technology Group Ltd., Arm Limited

What Geographic Markets Are Powering Growth in the System On Chip Market?
Asia-Pacific was the largest region in the system on chip market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the system on chip market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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