System On Chip Market on Track for Strong Growth, Estimated to Grow at 7.6% CAGR Through 2029

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What Is the Expected CAGR for the System On Chip Market Through 2025?
The market size for the system on chip has seen a substantial expansion in the last few years. Expected to rise from $152.46 billion in 2024 to $163.73 billion in 2025, this market will witness a compound annual growth rate (CAGR) of 7.4%. The previous period's growth is due to the progression in semiconductor technology, the revolution in mobile computing, the explosion of the Internet of Things (IoT), the emergence of wearable technology, and the development of automotive electronics.

What's the Projected Size of the Global System On Chip Market by 2029?
The "system on chip" market is projected to witness substantial growth in the upcoming years, ballooning to a huge $219.71 billion by 2029 with a Compound Annual Growth Rate (CAGR) of 7.6%. Key factors contributing to this projected growth during the forecast period include the proliferation of 5G connectivity, the expansion of edge computing, the application of artificial intelligence at the edge, autonomous vehicles, and the growth of augmented reality (AR) and virtual reality (VR). Noteworthy trends during the forecast period are the integration of dissimilar cores, an increased attention on security, customization and configurability, advancements in packaging technologies, and the emergence of domain-specific architectures.

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Top Growth Drivers in the System On Chip Industry: What's Accelerating the Market?
The growth of the system-on-chip market is anticipated to be fueled by the escalating use of smartphones. Smartphones are multifunctional handheld gadgets that amalgamate the capabilities of a personal computer with a mobile phone, generally offering internet services, a plethora of applications, and communication facilities. The versatility of smartphones, allowing access to entertainment, information, communication, and productivity-related tools in a handy, mobile gadget, is boosting their use. System on chip (SoC), which combines multiple electronic elements like processors, memory, and peripherals onto one chip, enhances the performance and power efficiency of smartphones. For instance, the Department of Telecommunications under the Vietnam Ministry of Information and Communications reported that Vietnam witnessed 91.3 million smartphone users in 2021. This figure rose by more than 2 million by the end of March 2022, making a total of 93.5 million subscribers, equivalent to 73.5% of the country's adult citizens. Hence, the escalating use 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?
Major firms in the system-on-chip market are concentrating on the creation of technologically pioneering solutions, such as systems foundry tailored for AI, to cater to various industry needs. The concept of Systems Foundry Designed for AI is a specifically shaped platform to enrich the creation and implementation of AI systems through customized tools and infrastructural support. For example, as per Intel, a tech firm based in the US, they unveiled the world's pioneering systems foundry conceptualized for AI era in February 2024. This major innovation leads a path of progression in the semiconductor manufacturing industry. The initiative was announced at the Intel Foundry Direct Connect event, and it was designed to cater to the increasing demand for AI-centric chip designs. This is achieved by providing an integrated method that merges chip design, scrutinizing, and manufacturing services. Notable elements involve the incorporation of 14A process technology, alliances with leading companies like Microsoft and Arm to improve design flows, and innovative wrapping solutions such as the embedded multi-die interconnect bridge (EMIB) technology.

What Are the Main 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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Which Top Companies are Driving Growth in the System On Chip Market?
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

Which Regions Will Dominate the System On Chip Market Through 2029?
Asia-Pacific was the largest region in the system on chip market in 2024. 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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