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2018

System-on-Chip Market

System-on-Chip Market Size, Share, Competitive Landscape and Trend Analysis Report by Type and Application - Global Opportunity Analysis and Industry Forecast, 2017-2023

SE : Semiconductors

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Author's: Akshay Jadhav & Sonia Mutreja | Sonia Mutreja
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System-on-Chip Market Outlook-2023

The global system-on-chip market was valued at $117.2 billion in 2016, and is projected to reach at $205.4 billion by 2023, growing at a CAGR of 8.1% from 2017 to 2023. System-on-chip (SoC) is an integrated circuit (IC) that consists of various components such as control unit, memory blocks, timing units, and interfaces mounted on one single chip. SoC is similar to the central processing unit (CPU) of the computer. For instance, it is compact in nature and occupies lesser space when compared with the CPU. The components of the SoC may vary depending on the intended use of it onto the device.

System on Chip Market

Factors such as compact nature of System on Chip, surge in demand for smart and power-efficient electronic devices, and rise in adoption of IoT supplement the global system-on-chip market. However, high initial cost of design & development and maintenance hampers this stated growth. Furthermore, continuous increase in requirement of compact and scalable ICs in the global electronic industry is expected to present numerous opportunities for system-on-chip market expansion.

The major companies profiled in the system-on-chip industry report include Intel Corporation, Samsung Electronics Co. Ltd., Qualcomm Incorporated, Toshiba Corporation, NXP Semiconductors N.V., Broadcom Limited, STMicroelectronics N.V., Apple Inc., MediaTek Inc., and Taiwan Semiconductor Manufacturing Company Limited.

 

system-on-chip market by geography

Segment overview

The system-on-chip market is segmented based on type, application, and region. The types covered in this report include digital, analog, and mixed signal. Based on application, the system-on-chip market is divided into consumer electronics, telecommunication, and automotive. The regions analyzed in this report are North America, Europe, Asia-Pacific, and LAMEA.

Top impacting factors

The significant impacting factors in the system-on-chip market size include compact nature, surge in demand for smart and power-efficient electronic devices, and rising adoption of IoT. The SoC market is also influenced by high initial cost of design & development and maintenance, rising demand of compact and scalable ICs in global electronic industry. Each of these factors would have a definite impact on the system-on-chip market during the forecast period.

Various impacting factors are Compact nature of SoC, Increase in adoption of IoT, Surge in demand for smart and power-efficient electronic devices, High initial cost of design & development and maintenance, High demand for compact and scalable ICs in the global electronic industry and others.

system-on-chip market top impacting factor

Compact nature of SoC

System on Chip consists of various different microprocessor subsystems along with I/O interfaces and memories. All these components are mounted on the same chip and are connected internally, which reduces the overall size. Moreover, the SoC provides higher design security at firmware and hardware levels. The design of upgraded SoCs in smaller size is underway, which offer doubled computing speed when compared with its predecessors. This in turn drives the SoC market.

Increase in adoption of IoT

The system-on-chip market share is witnessing rapid adoption of Internet of Things (IoT), due to high penetration of Wi-Fi connectivity, increase in demand for smart wearables, technological enhancements in wireless network technologies, and increased adoption of cloud platform. Furthermore, development of smart transportation and smart cities has led to increased adoption of IoT. This in turns propels the growth of the SoC market.

Surge in demand for smart and power-efficient electronic devices

Consumers opt for devices, which have better battery back-up as well as efficient & minimal power consumption. Thus, there is increase in consumer demand for the device to deliver enhanced performance as well as consume less power. SoC provides faster execution of tasks due to its memory and high-speed processor. Latest SoC's having up to 10 cores are also entering into the SoC market due to continuously increasing demand and SoC's with further cores are expected to be deployed in near future to fulfill the consumer demand. This demand for smart and power-efficient electronic devices is expected to drive the system-on-chip market growth.

High initial cost of design & development and maintenance

If the total number of SoCs to be developed is small, then the cost associated with each SoC will be very high. In addition, the cost incurred due to malfunction or failure of a single transistor or system damage is high as the complete board needs to be replaced. Moreover, servicing of System on Chip is expensive, which may impede the stated market growth.
High demand for compact and scalable ICs in the global electronic industry

Characteristics of compact and scalable ICs, such as compact size, lightweight, reduced cost, low power consumption, high reliability, and ease of replacement, play an important role in the electronic industry. Thus, there is continuous demand of applications loaded with ICs, which is expected to create lucrative opportunities for the key players operating in the global system-on-chip (SoC) market. In addition, ICs are implemented in various applications such as automobile, computers, television, and portable devices such as laptop, cell phones, camera, play stations, and more.

Key Benefits for System-On-Chip Market:

  • This study comprises analytical depiction of the global system-on-chip market with current trends and future estimations to depict the imminent investment pockets.
  • The overall market potential is determined to understand the profitable trends to gain a stronger foothold.
  • The report presents information related to key drivers, restraints, and opportunities with a detailed impact analysis.
  • The current system-on-chip market size is quantitatively analyzed from 2017 to 2023 to highlight the financial competency of the market.
  • Porter’s Five Forces analysis illustrates the potency of the buyers and suppliers in the industry.

System-on-Chip Market Report Highlights

Aspects Details
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By Type
  • Digital
  • Analog
  • Mixed Signal
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By Application
  • Consumer electronics
  • Telecommunication
  • Automotive
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By Region
  • North America  (U.S., Canada, Mexico)
  • Europe  (UK, Germany, France, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, Rest of Asia-Pacific)
  • LAMEA  (Latin America, Middle East, Africa)
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Key Market Players

QUALCOMM INCORPORATED, APPLE INC., MEDIATEK INC., NXP SEMICONDUCTORS N.V. (FREESCALE SEMICONDUCTOR, LTD.), TOSHIBA CORPORATION, INTEL CORPORATION, TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED, BROADCOM LIMITED, STMICROELECTRONICS N.V., SAMSUNG ELECTRONICS CO. LTD.

Analyst Review

The system-on-chip (SoC) market holds high potential for growth in the semiconductor industry. The current business scenario is witnessing an increase in demand for SoC, particularly in the developing regions. Companies in this industry are adopting various innovative techniques to provide customers with advanced and innovative product offerings.

The evolution of the SoC's is a consequence of market economics (consumers demand ever-more functionality in smaller and lower-cost products with better battery life) and Moore’s Law (enable ever-higher levels of integration). In addition, the SoC industry has developed rapidly from producing VLSI devices, which integrated a processor and a few peripheral & memory components onto a single chip to today’s high-performance SoCs that incorporate hundreds of IP blocks. Furthermore, future developments in SoC are expected to improve their performance, flexibility, power efficiency, and functionality.

Intel Corporation, Samsung Electronics Co. Ltd., Qualcomm Incorporated, Toshiba Corporation, NXP Semiconductors N.V., Broadcom Limited, STMicroelectronics N.V., Apple Inc., MediaTek Inc., and Taiwan Semiconductor Manufacturing Company Limited are key players that occupy a significant revenue share in the market.

Author Name(s) : Akshay Jadhav & Sonia Mutreja | Sonia Mutreja

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System-on-Chip Market

Global Opportunity Analysis and Industry Forecast, 2017-2023