The global system on a chip (SoC) market, by Type (Digital, Analog, and Mixed Signal), by End-use Industry (Automotive, Aerospace & Defense, IT & Telecommunication, Consumer Electronics, Industrial, Healthcare, and Others), and by Region (North America, Europe, Asia Pacific, Latin America, Middle East, and Africa) - Global Forecast to 2027” is expected to be valued US$ 124.6 billion in 2018, exhibiting a CAGR of 7.8% during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
System on a Chip (SoC) is an integrated circuit (IC) that integrates electronics components such as memory blocks, input and output (i/o ports), interface, secondary storage on a single silicon chip. As all these components are on a single chip, it consumes less power and utilizes less space as compared to multi-chips. Moreover, the system on a chip (SoC) is becoming increasingly popular with the adoption of internet of things (IoT) devices, edge AI devices, and mobile computing as these devices consist of system on a chip (SoC). Furthermore, the global system on a chip (SoC) market is divided into three types such as digital SoC, analog SoC and mixed SoC.
Increasing use of system on a chip (SoC) in wearable devices such as smart watches and fitness trackers are expected to drive growth of the global system on a chip (SoC) market during the forecast period.
People around the world are using advanced wearable devices such as smart watches and fitness trackers. These devices are equipped with various sensors such as accelerometer, gyroscope, magnetometers, global positioning system (GPS), heart rate sensors, pedometers, pressure sensors, and many others. To control and coordinate these sensors, systems-on-chip devices are required. Thus, increasing demand for wearable devices is expected to boost the demand for system on a chip (SoC) during the forecast period.
Furthermore, increasing penetration of IoT devices is expected to drive growth of the wearable devices market. Thus, increasing demand of wearable devices and usage of IoT technology are expected to drive demand for system on a chip (SoC) market over the forecast period.
Customized chips for various markets is to offer lucrative growth opportunities for system on a chip (SoC) market players.
Disruptive technologies are creating lucrative opportunities for SoC manufacturers in various end use industries such as autonomous driving, smart security, and smart homes and others. However, these markets are facing unexpected obstacles with unsuitable Integrated circuit (IC’s) for devices such as electric cars. These IC’s are not specifically designed for these industries or markets and are not able to deliver up to the mark performance. For instance, SoC used for a car requires huge computing power to make real-time decisions. These SoC also need to sustain high temperatures and electromagnetic forces. On the other hand, chips used for a smart home requires less computing power compared to those used in electric cars. The increasing application of the internet of things (IoT) in every industry and is creating opportunities for market players to manufacture specially designed chips for various applications and offers lucrative growth opportunities for system on a chip (SoC) market players.
Fear to adopt new technology is expected to restrain the growth of the global system on a chip (SoC) market during the forecast period.
Artificial Intelligence (AI) chips promises significant growth opportunities for key players in the market, but they are contributing a very small amount of revenue generation. For instance, according to Coherent Market Insights analysis, in 2019, the AI chip market accounted for around 0.58% of the total market of the global semiconductor devices market. Furthermore, the majority of the AI chipset is used high-end smart devices such as an apple with A12 bionic chip, Samsung’s Exynos 9820, and others. However, the majority of the company’s revenue comes from mid-range smartphone devices. On the other hand, companies need to invest a huge amount of resources for the development of new technology such as AI chips. Thus, price-to-research ratio is a huge restraining factor for the growth of the global system on a chip (SoC) market during the forecast period.
Key players operating in the global system on a chip (SoC) market include Apple Inc., Huawei Technologies Co. Ltd., MediaTek Inc., Qualcomm Technologies Inc., Samsung Electronics CO. LTD., Intel Corporation, STMicroelectronics N.V., Toshiba Corporation, NXP Semiconductors N.V., and Broadcom Inc. among others.