System-on-Chip Market by Application and Geography - Forecast and Analysis 2022-2026

The system-on-chip (SoC) market share is expected to reach an estimated value of USD 6.85 billion from 2021 to 2026 at an accelerating CAGR of 5.28%. This system-on-chip (SoC) market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. The system-on-chip (SoC) market report offers information on several market vendors, including Analog Devices Inc., Apple Inc., Broadcom Inc., Huawei technologies Co. Ltd., Infineon Technologies AG, Intel Corp., MediaTek Inc., Microchip Technology Inc., NVIDIA Corp., NXP Semiconductors NV, Qualcomm Inc., Samsung Electronics Co. Ltd., STMicroelectronics International NV, Taiwan Semiconductor Manufacturing Co. Ltd., Texas Instruments Inc., and Toshiba Corp. among others. Furthermore, this report extensively covers system-on-chip (SoC) market segmentation by the following:

• Application - Consumer electronics, IT and telecommunication, automotive, and others
• Geography - APAC, North America, Europe, South America, and Middle East and Africa

What will the System-on-Chip (SoC) Market Size be During the Forecast Period?

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System-on-Chip (SoC) Market: Key Drivers, Trends, and Challenges

Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The growing adoption of socs in robotics is notably driving the system-on-chip (SoC) market growth, although factors such as the dependency of SoC vendors on IP core providers may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the system-on-chip (SoC) industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key System-on-Chip (SoC) Market Driver

One of the key factors driving growth in the system-on-chip (SoC) market is the growing adoption of SoCs in robotics. Stakeholders across industries such as automotive, electronics, healthcare, and military and defense are deploying robots. As the demand for robotics increases across industries, there will be an increase in the need for robots (to be integrated with the appropriate processor architecture). SoCs are integrated into robots as they include embedded hardware and software, which can help reduce the time to market and the total cost of ownership. The increasing automation across various industries is expected to drive the demand for collaborative robots as well. At present, the increasing need to make robots efficient requires a new system of hardware that supports extremely fast processing with minimal errors. Therefore, SoCs are highly suitable to be integrated into robotics. As the demand for robotics increases across numerous applications, we expect a significant rise in the demand for SoCs as well, contributing to the market growth during the forecast period.

Key System-on-Chip (SoC) Market Trend

The increase in 5G investments is a system-on-chip (SoC) market trend that is expected to have a positive impact in the coming years. There have been numerous investments in 5G across the globe. Worldwide 5G network infrastructure revenue grew 39% to a total of $19.1 billion in 2021, up from $13.7 billion in 2020. The increasing investments in 5G are creating demand for 5G network infrastructure. This is expected to accelerate the developments in electronic components and modules such as 5G mm-wave antenna modules, 5G multimode modems, 5G base stations, and several 5G RF products. To capitalize on the growing investments in 5G, SoC vendors are releasing products that support 5G to cater to a wide range of application segments. Such product launches enable telecom service providers and network equipment providers to integrate SoC solutions into their networking products to enable carriers to provide 5G services. Thus, an increase in the investments in 5G will propel the adoption of SoCs.

Key System-on-Chip (SoC) Market Challenge

The dependency of SoC vendors on IP core providers will be a major challenge for the system-on-chip (SoC) market during the forecast period. The creation of multifunctional SoCs is complex, and semiconductor manufacturers completely rely on IP providers for the development of high-performance SoCs. Owing to technological advances, vendors with sufficient financial resources are trying to acquire new technologies and IP rights. Although the demand is high, integrating semiconductor IP blocks from third-party vendors into SoCs is challenging. Design engineers face a major challenge at the time of integrating their acquired semiconductor IP blocks from third-party IP vendors into SoCs. The cost of IP integration doubles the total cost of acquiring IPs. The rise in the number of IP blocks can also increase the production time cycle. Therefore, Technavio expects that the vendors with high financial resources will increase their footprint, and small vendors will find it difficult to compete with them in terms of quality, technology, and price.

This system-on-chip (SoC) market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global system-on-chip (SoC) market as a part of the global semiconductor market within the overall global semiconductors and semiconductor equipment market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the system-on-chip (SoC) market during the forecast period.

Who are the Major System-on-Chip (SoC) Market Vendors?

The report analyzes the market's competitive landscape and offers information on several market vendors, including:

 

• Analog Devices Inc.
• Apple Inc.
• Broadcom Inc.
• Huawei technologies Co. Ltd.
• Infineon Technologies AG
• Intel Corp.
• MediaTek Inc.
• Microchip Technology Inc.
• NVIDIA Corp.
• NXP Semiconductors NV
• Qualcomm Inc.
• Samsung Electronics Co. Ltd.
• STMicroelectronics International NV
• Taiwan Semiconductor Manufacturing Co. Ltd.
• Texas Instruments Inc.
• Toshiba Corp.

 

This statistical study of the system-on-chip (SoC) market encompasses successful business strategies deployed by the key vendors. The system-on-chip (SoC) market is fragmented and the vendors are deploying growth strategies such as investing in R&D to compete in the market.

Product Insights and News

• Apple Inc. - Apple Inc. is a public company headquartered in US. It is a global company generating $365,817 million in revenues and has around 154,000 employees. Its revenue from the global system-on-chip (SoC) market contributes to its overall revenues along with its other offerings, but it is not a key revenue stream for the company. 
• Apple Inc. - The company offers system-on-chip that includes M1 Ultra chip which provides 2.5TBps of bandwidth between the two dies, which allows the Ultra to be recognized as a single SoC by macOS. 

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The system-on-chip (SoC) market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

System-on-Chip (SoC) Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the system-on-chip (SoC) market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for System-on-Chip (SoC) Market?

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74% of the market's growth will originate from APAC during the forecast period. China and India are the key markets for system-on-chip (SoC) in APAC. Market growth in this region will be faster than the growth of the market in other regions.

The high concentration of consumer electronics, automobiles, telecommunication equipment, and enterprise networking equipment OEMs in the region will facilitate the system-on-chip (SoC) market growth in APAC over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID Impact and Recovery Analysis

The outbreak of COVID-19 in 2020 had a negative impact on the regional SoC market. The pandemic resulted in numerous deaths in China and other nations, prompting lockdowns in the region. However, in 2021, due to the availability of COVID-19 vaccines and the large-scale vaccination drives carried out by the governments in APAC, activities in end-user industries gradually regained normalcy. Therefore, the demand for SoCs has increased, which will lead to regional SoC market growth during the forecast period.

What are the Revenue-generating Application Segments in the System-on-Chip (SoC) Market?

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The system-on-chip (SoC) market share growth by the consumer electronics segment will be significant during the forecast period. SoCs are integrated with various components such as control units and memory units on a single chip. Since these SoCs occupy limited space, they can easily be integrated into several consumer electronics to reduce the overall size of the devices. This creates demand for SoCs. Furthermore, the increase in the requirements for compact and scalable ICs to manufacture compact consumer electronics will drive the demand for SoCs during the forecast period. 

This report provides an accurate prediction of the contribution of all the segments to the growth of the system-on-chip (SoC) market size and actionable market insights on post COVID-19 impact on each segment.

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System-on-Chip (SoC) Market Scope
Report Coverage	Details
Page number	120
Base year	2021
Forecast period	2022-2026
Growth momentum & CAGR	Accelerate at a CAGR of 5.28%
Market growth 2022-2026	$ 6.85 billion
Market structure	Fragmented
YoY growth (%)	4.24
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 74%
Key consumer countries	US, China, India, Germany, and UK
Competitive landscape	Leading companies, Competitive strategies, Consumer engagement scope
Key companies profiled	Analog Devices Inc., Apple Inc., Broadcom Inc., Huawei technologies Co. Ltd., Infineon Technologies AG, Intel Corp., MediaTek Inc., Microchip Technology Inc., NVIDIA Corp., NXP Semiconductors NV, Qualcomm Inc., Samsung Electronics Co. Ltd., STMicroelectronics International NV, Taiwan Semiconductor Manufacturing Co. Ltd., Texas Instruments Inc., and Toshiba Corp.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this System-on-Chip (SoC) Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive system-on-chip (SoC) market growth during the next five years
• Precise estimation of the system-on-chip (SoC) market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the system-on-chip (SoC) industry across APAC, North America, Europe, South America, and Middle East and Africa
• A thorough analysis of the market's competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of system-on-chip (SoC) market vendors

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