System on Chip Market

Market Definition

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.

System on Chip Market Overview

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.

• For instance, in May 2025, Nokia collaborated with Optus to enhance 5G network capacity and coverage across regional Australia. The deployment included Nokia’s Habrok Massive MIMO radios and Levante baseband solutions, powered by its ReefShark System-on-Chip (SoC) technology, to deliver high-performance, energy-efficient 5G connectivity while supporting network sustainability through AI acceleration and advanced power-saving capabilities.

This partnership underscores the increasing demand for sophisticated SoCs that support scalable, high-performance, and energy-efficient wireless infrastructure, thereby fueling growth and innovation.

Key Highlights

1. The system on chip market size was valued at USD 190.23 billion in 2024.
2. The market is projected to grow at a CAGR of 5.92% from 2025 to 2032.
3. North America held a market share of 42.02% in 2024, with a valuation of USD 79.93 billion.
4. The octa-core segment garnered USD 68.10 billion in revenue in 2024.
5. The ARM segment is expected to reach USD 212.07 billion by 2032.
6. The ≤10 nm segment is projected to generate a revenue of USD 118.86 billion by 2032.
7. The consumer electronics segment is likely to reach a value of USD 110.84 billion by 2032.
8. The smartphones segment is expected to reach USD 115.66 billion by 2032.
9. The market in Asia Pacific is anticipated to grow at a CAGR of 6.35% over the forecast period.

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.

• In January 2025, Ambarella, Inc. introduced the N1-655 edge GenAI system-on-chip (SoC) during the Consumer Electronics Show (CES), enabling low-power, on-premise processing of multimodal AI models for applications such as AI boxes, autonomous robots, and smart city security, with support for 12 video streams and under 20W power consumption.

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.

• For instance, in May 2025, Siemens Digital Industries Software launched the Questa One smart verification solution to address the IC verification productivity gap. The platform integrates AI-powered automation, data-driven analytics, and seamless connectivity to accelerate verification cycles and support complex SoC, chiplet, and 3D-IC designs, reducing processing times from over 24 hours to less than 1 minute. This enables faster verification cycles, improved coverage, and more efficient use of engineering resources.

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.

• In September 2024, SiMa.ai introduced the MLSoC Modalix product family, the industry’s first multi-modal edge AI platform supporting CNNs, Transformers, LLMs, LMMs, and Generative AI. Designed for high performance and power efficiency, the chips enable end-to-end GenAI applications on edge devices and integrate seamlessly with SiMa.ai’s ONE Platform for cross-industry deployment.

System on Chip Market Report Snapshot

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

• By Core Type (Single-core, Dual-core, Quad-core, Hexa-core, and Octa-core): The octa-core segment earned USD 68.10 billion in 2024, mainly due to its ability to efficiently manage multitasking and high-performance applications in advanced consumer devices.
• By Core Architecture (ARM, X86, RISC‑V, and MIPS): The ARM segment held a share of 69.30% in 2024, propelled by its widespread adoption in mobile and embedded systems for its power efficiency and scalability.
• By Fabrication Technology (≤10 nm, 11–20 nm, 21–45 nm, and ≥46 nm): The ≤10 nm segment is projected to reach USD 118.86 billion by 2032, owing to increasing demand for miniaturized, high-speed chips with enhanced processing power and reduced energy consumption.
• By Application (Consumer Electronics, Automotive, IT & Telecom, Industrial, Healthcare, and Aerospace & Defense): The consumer electronics segment is estimated to reach USD 110.84 billion by 2032, propelled by continuous innovation in smart devices and growing global digital consumption.
• By End Use Device (Smartphones, Tablets, Laptops, Smart TVs & STBs, Automotive Infotainment, Routers/Gateways, and Wearables): The smartphones segment is anticipated to reach USD 115.66 billion by 2032, fostered by rising mobile penetration, frequent device upgrades, and the integration of AI and 5G technologies.

System on Chip Market Regional Analysis

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.

• For instance, in June 2025, Micron Technology, Inc. collaborated with the U.S. government on a strategic expansion of its domestic operations through a USD 200 billion investment in semiconductor manufacturing and research to meet increasing demand driven by artificial intelligence and high-performance computing applications.

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.

• For instance, in March 2025, Taiwan Semiconductor Manufacturing Company (TSMC) and MediaTek collaborated to demonstrate the first integrated power management unit (PMU) and power amplifier (iPA) for wireless connectivity products using TSMC’s N6RF+ process technology. This achievement highlights the region’s technological leadership and capacity to pioneer high-performance, space-efficient SoC solutions tailored for next-generation wireless applications.

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.

 Regulatory Frameworks

• In the U.S., the Federal Communications Commission (FCC) regulates system on chip (SoC) products that emit radiofrequency. The Food and Drug Administration (FDA) oversees SoCs integrated into medical devices, while the Bureau of Industry and Security (BIS) enforces export controls for SoCs with advanced computing or encryption capabilities. Additionally, the Occupational Safety and Health Administration (OSHA) ensures safety compliance for industrial equipment incorporating SoCs.
• In Europe, system on chip (SoC) products are regulated by the European Commission under the Radio Equipment Directive (RED) and the Electromagnetic Compatibility (EMC) Directive, with conformity assessed through the CE marking process and enforced by designated Notified Bodies within member states.

Competitive Landscape

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.

• For instance, in April 2025, Siemens and Taiwan Semiconductor Manufacturing Company (TSMC) expanded their partnership through the joint certification of Siemens’ EDA tools for TSMC’s advanced nodes and 3D packaging platforms enhancing design workflows and accelerating development timelines.

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.

• For instance, in January 2024, Intel Corporation acquired Silicon Mobility SAS, a fabless silicon and software company specializing in SoCs for intelligent electric vehicle (EV) energy management. The acquisition aimed to expand Intel’s capabilities in AI-enhanced, software-defined vehicle (SDV) SoCs, supporting next-generation in-vehicle experiences and improved energy efficiency.

List of Key Companies in System on Chip Market:

• 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.
• Renesas Electronics Corporation

Recent Developments (Product Launches)

• In June 2025, Andes Technology launched the AndesAIRE AnDLA I370, a next-generation deep learning accelerator designed for edge and endpoint AI applications. The AnDLA I370 supports RNN models, audio/voice AI, and INT16/INT8 precision, offering up to 2 TOPS/GHz performance and integration with major AI frameworks. The solution enables efficient AI deployment across smart devices, IoT, and embedded vision platforms.
• In February 2025, Microchip Technology introduced the SAMA7D65 series of microprocessors in both System-on-Chip (SoC) and System-in-Package (SiP) formats. The SAMA7D65 MPUs are designed for Human-Machine Interface (HMI) and connectivity applications, featuring advanced graphics capabilities, dual Gigabit Ethernet with TSN support, and integrated 2D GPU, LVDS, and MIPI DSI interfaces.
• In November 2024, Renesas Electronics Corporation launched the R-Car X5H, the first automotive multi-domain system-on-chip (SoC) built on 3-nanometer process technology. Targeted at ADAS, in-vehicle infotainment, and gateway systems, it ombines AI, GPU, and real-time processing with hardware-based isolation for safety-critical functions.