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System Basis Chip Market Forecasted to Grow at 8.1% CAGR Through 2033, Driven by ADAS and IoT Expansion | Persistence Market Research
System Basis Chip Market
Automotive applications such as ADAS, automated driving, infotainment systems, and vehicle connectivity are heavily dependent on system basis chips for power management, safety, and communication. With the increasing adoption of IoT devices, mobile electronics, and smart connectivity solutions, SBCs are becoming an integral part of next-generation vehicle architectures and consumer electronics ecosystems.
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Key Highlights from the Report
• The market is expected to grow from US$ 28.4 billion in 2023 to US$ 62 billion by 2033.
• North America contributes 24.2% growth, driven by EV adoption and advanced automotive R&D.
• Japan's SBC market is projected to grow at 8.4% CAGR, led by strong electronics manufacturing.
• The United Kingdom is expected to expand at 6.5% CAGR over the forecast period.
• ADAS and automated driving remain the largest growth drivers in automotive electronics.
• SoC (System-on-Chip) integration enhances efficiency, compact design, and reduced power consumption.
Market Segmentation
The system basis chip market is segmented by application, end-use industry, and geography. By application, SBCs are widely used in powertrain systems, body electronics, infotainment, ADAS, and vehicle connectivity solutions. Among these, ADAS and automated driving dominate, as vehicles increasingly rely on intelligent chips to manage safety-critical operations.
By end-use, automotive electronics lead the market, accounting for the largest share due to rising EV penetration and vehicle electrification. Meanwhile, the consumer electronics and IoT devices sector is growing steadily, with smartphones, wearables, and smart home devices integrating SoC-based SBCs to enhance efficiency and compactness.
Regional Insights
North America holds the largest share of the global market, contributing to 24.2% of growth between 2023 and 2033. The region's leadership is driven by robust EV manufacturing, autonomous driving R&D, and strong semiconductor innovation ecosystems.
In Asia-Pacific, Japan is expected to grow at 8.4% CAGR, supported by its established electronics and automotive industries. Meanwhile, the United Kingdom (6.5% CAGR) is leading Europe's growth, fueled by investments in connected car technologies and smart mobility initiatives.
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Market Drivers
The primary driver of the system basis chip market is the electrification and digitalization of vehicles. As automotive OEMs embrace EVs, ADAS, and autonomous driving, the demand for SBCs capable of handling power efficiency, safety, and connectivity is surging.
Another key driver is the proliferation of IoT devices and consumer electronics, where compact and energy-efficient system-on-chip (SoC) designs are becoming critical for performance optimization.
Market Restraints
Despite strong demand, the market faces challenges related to semiconductor supply chain disruptions. Shortages in raw materials and advanced chip fabrication capacities can hinder production.
Additionally, the high design complexity of SBCs-involving the integration of power management, communication interfaces, and processors-raises development costs, limiting adoption among smaller manufacturers.
Market Opportunities
The shift toward vehicle electrification and smart mobility presents massive opportunities for SBC manufacturers. With EVs requiring more sophisticated power management and connectivity solutions, demand for advanced SBCs will continue to surge.
Moreover, integration of AI and edge computing capabilities into SBCs offers a new growth avenue. This innovation can improve real-time decision-making in both automotive and IoT applications, supporting smart and autonomous ecosystems.
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Reasons to Buy the Report
✔ Comprehensive analysis of market size, growth trajectory, and forecasts.
✔ Insights into key applications such as ADAS, infotainment, and vehicle connectivity.
✔ Regional breakdown highlighting high-growth markets in North America, Europe, and Asia-Pacific.
✔ Competitive landscape with company profiles and latest developments.
✔ Strategic recommendations for leveraging AI and SoC integration opportunities.
Frequently Asked Questions (FAQs)
How Big is the System Basis Chip Market in 2023?
Who are the Key Players in the Global System Basis Chip Market?
What is the Projected Growth Rate of the System Basis Chip Market?
What is the Market Forecast for System Basis Chips by 2033?
Which Region is Estimated to Dominate the Industry through the Forecast Period?
Company Insights
Key players in the system basis chip market include:
• Infineon Technologies AG
• NXP Semiconductors N.V.
• Texas Instruments Incorporated
• Robert Bosch GmbH
• Analog Devices Inc.
• STMicroelectronics N.V.
• ON Semiconductor Corporation
• Renesas Electronics Corporation
• Microchip Technology Inc.
• Rohm Semiconductor
Recent Developments:
1. Infineon Technologies AG expanded its automotive SBC portfolio in 2023 to support EVs and ADAS integration with higher efficiency.
2. NXP Semiconductors N.V. announced a new line of SBCs tailored for vehicle connectivity and cybersecurity applications in 2023.
Conclusion
The system basis chip market is poised for remarkable growth, expanding from US$ 28.4 billion in 2023 to US$ 62 billion by 2033. Driven by ADAS, automated driving, IoT, and electrification trends, SBCs are becoming the backbone of modern automotive and consumer electronics ecosystems. While supply chain challenges and design complexities persist, emerging opportunities in AI integration, smart mobility, and energy-efficient SoCs are expected to shape the industry's future. With North America leading the market and Asia-Pacific accelerating growth, the coming decade will be transformative for system basis chip manufacturers and end-users alike.
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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.
Our approach combines traditional market research methods with modern tools to offer comprehensive research solutions. With a decade of experience, we pride ourselves on deriving actionable insights from data to help businesses stay ahead of the competition. Our client base spans multinational corporations, leading consulting firms, investment funds, and government departments. A significant portion of our sales comes from repeat clients, a testament to the value and trust we've built over the years.
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