Buy Now
System on Chip Market Size, Share, Growth & Industry Analysis, By Core Type (Single-core, Dual-core, Quad-core, Hexa-core, Octa-core), By Core Architecture (ARM, X86, RISC‑V, MIPS), By Fabrication Technology, By Application, By End Use Device and Regional Analysis, 2025-2032
Pages: 200 | Base Year: 2024 | Release: June 2025 | Author: Versha V.
A system on chip (SoC) is an integrated circuit that consolidates key components such as the central processing unit, memory, input/output interfaces, and storage onto a single chip. The market spans consumer electronics, automotive systems, telecommunications infrastructure, medical technologies, and industrial automation, offering compact, energy-efficient, and high-performance solutions for advanced, connected systems.
The global system on chip market size was valued at USD 190.23 billion in 2024 and is projected to grow from USD 200.03 billion in 2025 to USD 299.14 billion by 2032, exhibiting a CAGR of 5.92% during the forecast period.
The market is witnessing significant growth, driven by the increasing demand for compact, energy-efficient, and high-performance computing solutions across multiple sectors. In consumer electronics, the widespread use of smartphones, tablets, and wearable devices is accelerating SoC adoption.
Furthermore, the automotive industry is integrating SoC-based systems to support advanced functionalities in electric and autonomous vehicles.
Major companies operating in the system on chip industry are Apple Inc., Qualcomm Technologies, Inc., MediaTek, SAMSUNG, Intel Corporation, NVIDIA Corporation, Advanced Micro Devices, Inc., Broadcom, Beijing Zhiguangxin Holding Co., Ltd, Texas Instruments Incorporated, NXP Semiconductors, Taiwan Semiconductor Manufacturing Company Limited, STMicroelectronics, Sony Electronics Inc., and Renesas Electronics Corporation.
The expansion of 5G networks and the growing deployment of Internet of Things (IoT) and edge computing technologies are highlighting the need for highly integrated hardware solutions.
This partnership underscores the increasing demand for sophisticated SoCs that support scalable, high-performance, and energy-efficient wireless infrastructure, thereby fueling growth and innovation.
Market Driver
Rising Demand for Low-Latency Processing in Edge Environments
The growth of the market is propelled by the increasing adoption of edge computing, which allows data to be processed closer to the source rather than relying on centralized servers.
This shift creates a need for hardware capable of delivering high computational performance, low power consumption, and real-time responsiveness within compact and embedded environments. SoCs meet these requirements by integrating multiple processing functions into a single chip, making them well-suited for edge-based applications.
This is leading to increased demand for advanced SoCs across industries implementing edge computing in areas such as industrial automation, smart infrastructure, and connected devices.
As companies adopt a wider range of smart equipment, sensors, and edge-based systems, the demand for advanced SoCs that enable efficient, real-time data processing is expected to increase across industrial and consumer markets.
Market Challenge
Verification Productivity Gap in SoC Development
A key challenge limiting the expansion of the system on chip market is the increasing verification productivity gap. As SoC designs grow in complexity with larger IP blocks, diverse architectures, and integrated features such as AI acceleration and chiplet-based components, functional verification demands significantly more time and resources. Conventional verification approaches are increasingly inadequate, leading to delays and higher development costs.
To address this challenge, companies are adopting advanced verification solutions that leverage AI-powered automation, data-driven analytics, and unified platforms capable of supporting simulation, formal verification, and emulation.
Market Trend
Integration of Generative AI and Multimodal Capabilities in Edge SoC Architectures
The market is experiencing a notable trend toward the integration of generative AI and multimodal processing capabilities into edge-optimized designs. This shift is further supported by increasing demand for SoCs that can efficiently handle complex workloads involving language, vision, and audio inputs directly on edge devices.
To meet these requirements, manufacturers are incorporating dedicated AI accelerators, enhancing mixed-precision computing, and enabling concurrent data processing, while optimizing for power and space efficiency.
This advancement is enabling real-time, on-device intelligence across various sectors, reducing reliance on cloud infrastructure while improving performance, responsiveness, and data privacy in edge applications.
Segmentation |
Details |
By Core Type |
Single-core, Dual-core, Quad-core, Hexa-core, Octa-core |
By Core Architecture |
ARM, X86, RISC‑V, MIPS |
By Fabrication Technology |
≤10 nm, 11–20 nm, 21–45 nm, ≥46 nm |
By Application |
Consumer Electronics, Automotive (Powertrain Control, ADAS (Advanced Driver Assistance Systems), Infotainment & Navigation), IT & Telecom (5G Infrastructure, Network Routers, Edge Devices), Industrial (Robotics, Industrial IoT (IIoT), PLCs (Programmable Logic Controllers)), Healthcare (Wearable Monitoring Devices, Diagnostic Equipment, Portable Ultrasound Devices), Aerospace & Defense (Avionics, Radar Systems, Communication Systems) |
By End Use Device |
Smartphones, Tablets, Laptops, Smart TVs & STBs, Automotive Infotainment, Routers/Gateways, Wearables |
By Region |
North America: U.S., Canada, Mexico |
Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe |
|
Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific |
|
Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa |
|
South America: Brazil, Argentina, Rest of South America |
Market Segmentation
Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.
The North America system on chip market accounted for a substantial share of 42.02% in 2024, valued at USD 79.93 billion. This leading position is primarily attributed to the strong presence of established semiconductor firms, driving continued innovation in system on chip (SoC) design and development.
The regional market benefits from extensive research and development infrastructure, a highly skilled engineering workforce, and robust demand from sectors such as consumer electronics, automotive, and data centers.
The Asia-Pacific system on chip industry is expected to register the fastest growth CAGR of 6.35% over the forecast period. This growth is primarily attributed to the strong presence of advanced semiconductor foundries and design firms in economies such as Taiwan, South Korea, and China. The region is at the forefront of innovation in chip architecture, fabrication technologies, and integration capabilities.
These advancements underscore Asia Pacific’s capability in design-technology co-optimization and its pivotal role in advancing next-generation SoC technologies across critical sectors such as 5G, IoT, and mobile computing.
The system on chip market is characterized by strategic initiatives focused on technological refinement and competitive differentiation. Industry participants are increasingly investing in research and development to advance process nodes, enhance power efficiency, and enable greater integration of functionalities such as AI and 5G.
Strategic collaborations between semiconductor manufacturing partners and electronic design automation (EDA) solution providers have become integral to facilitating design-technology co-optimization.
These alliances significantly reduce product development cycles and support the early adoption of advanced semiconductor technologies. Key players are developing application-specific SoCs and strategic acquisitions to strengthen AI capabilities, streamline operations, and improve product portfolio integration.
Recent Developments (Product Launches)