System-on-Chip Market Size, Share & Industry Analysis, By Core Count (Single-core, Dual-core, Quad-core, Hexa-core, Octa-core, and Others), By Application (Consumer Electronics, Automotive, Network Infrastructure, Computing & Data Storage, Healthcare, Industrial, and Others), and Regional Forecast, 2025 – 2032

The global system-on-chip market size was valued at USD 134.09 billion in 2024. The market is projected to grow from USD 144.23 billion in 2025 to USD 269.83 billion by 2032, exhibiting a CAGR of 9.4% during the forecast period.

System-on-chip (SoC) refers to a type of Integrated Circuit (IC) design that syndicates many or all high-level function fundamentals of an electrical device onto a chip instead of using separate components that are mounted on a motherboard, as is done in outdated electronics designs. This technology is used in compact and complex consumer electronic devices. SoC integrates most modules of a computer or other electronic system, such as a Central Processing Unit (CPU), memory interfaces, on-chip input/output devices, secondary storage interfaces, and input/output interfaces. It also integrates radio modems and a Graphics Processing Unit (GPU) on a single microchip or substrate. SoC is similar to a CPU. However, it is more dense and occupies less space than the CPU. These factors will accelerate the market’s growth in the coming years.

The global market is poised for significant growth driven by the increasing demand for smart and power-efficient electronic devices, advancements in consumer electronics, and expansion of the automotive industry. Key players in the market include Broadcom, Inc. (U.S.), MediaTek Inc. (U.S.), and Samsung (South Korea), with products, such as Broadcom’s BCM7420 and BCM5820X modules. The market will likely see technological innovations concentrated on launching energy-efficient solutions that can be used in extreme conditions.

Generative AI Impact

Leveraging the Power of Generative AI in SoCs to Drive Market Growth

Generative AI is significantly influencing the market by driving the demand for the optimization of specialized SoCs for AI applications and transforming the chip design process. Leading companies are developing advanced SoCs to meet the computational demands of generative AI. For instance,

• NVIDIA’s GeForce RTX 50 Series GPUs, powered by the new Blackwell AI chip, represent a significant leap in computer graphics and AI processing capabilities.

Additionally, these AI tools assist chip designers in creating, verifying, and optimizing designs more rapidly and with improved quality. By automating repetitive tasks and offering predictive capabilities, these tools streamline the design process, reducing time to market and development costs. This factor will boost the growth of the market.

SYSTEM-ON-CHIP MARKET TRENDS

Surging Adoption of IoT and Connected Devices among SoCs to Fuel Market Growth

The rapid adoption of the Internet of Things (IoT) and connected devices is significantly propelling the growth of the market. SoCs integrate multiple components, such as processors, memory chips, and connectivity modules, into a single chip, making them ideal for the compact and efficient design requirements of IoT devices. These chips are tailored for on-device processing in AI applications, enhancing privacy and battery life even in areas with limited connectivity. Furthermore, the rising demand for SoCs in industrial automation and robotics is also creating lucrative opportunities in the market. SoCs provide the necessary processing power and efficiency required for advanced industrial applications, further driving their adoption.

MARKET DYNAMICS

Market Drivers

Rising Adoption of ADAS in Autonomous Vehicles Globally to Drive Market Growth

The automotive industry is increasingly implementing SoCs owing to their ability to integrate numerous functions into a single chip. Many automakers are incorporating SoCs into their vehicle models to fulfill modern and complex vehicle demands. The automobile sector is growing steadily due to the evolving needs of consumers and technological advancements. ADAS-based SoC is a highly enhanced and scalable family of devices designed to cater to the requirements of prominent ADAS solutions. This SoC has several channels that are used as dedicated hardware. It provides an extensive range of structures, including the conversion of data input from cameras into panoramic stereoscopic audiovisuals that are implicitly viewed and offer clearer HD videos. This is expected to drive the demand for SoCs in the automotive industry. For instance,

• In September 2024, Renesas Electronics Corporation, a provider of innovative semiconductor solutions, declared the expansion of its R-Car Automotive system-on-chips (SoCs) for entrance-level Advanced Driver Assistance Systems (ADAS). The development of these devices provided robust AI processing capability and fast CPU performance while cautiously balancing performance and power consumption.


• In January 2024, Qualcomm Technologies and BOSCH launched an innovative central vehicle computer for the automotive industry that is capable of running Advanced Driver Assistance System (ADAS) and infotainment functionalities on a single SoC. The launch of this product offered a high-performance, accessible solution for automakers to comprehend next-generation software-defined vehicles.

Market Restraints

High Design and Manufacturing Costs Can Hamper Usage of SoCs

Designing and developing complex SoCs can be expensive, which acts as a major barrier to the growth of the market. Heavy investments in innovative R&D are essential to design SoCs. The SoC’s design is vastly complex, with several functions, such as memory, processing units, and communication interfaces, brought together on one chip. This necessitates extensive expertise and the use of advanced tools. Therefore, manufacturing SoCs is capital-intensive, mainly since semiconductors are emerging in nanometer technologies. This would incur higher costs and a huge obstacle for new players in those markets, creating quite a challenge for market players looking to modernize and scale their operations.

Moreover, rapid technical changes have exposed the comprehensive lifecycle of SoC-based products. The fast-paced landscape of technological advancements, such as SoCs, which are essential to an extensive range of devices, from smartphones to automotive systems, has rapidly become obsolete. Therefore, companies are under constant pressure to modernize and release innovative versions of SoCs that integrate the latest features and competencies. These factors can hinder the global system-on-chip market growth.

Market Opportunities

Increasing Penetration of AI Smartphones and AI PCs to Create Numerous Market Opportunities

The increasing incorporation of AI in several devices, including PCs, smartphones, and smart TVs, will bring growth opportunities for AI-optimized SoCs. The SoCs can efficiently handle complex AI workloads, including computer vision, natural language processing, and machine learning. AI-optimized SoCs provide on-device AI processing, thereby increasing their adoption in edge computing devices. With technological developments in AI and deep learning algorithms, SoC producers are incorporating NPUs to accelerate the use of AI. For instance,

• In March 2024, Qualcomm Technologies Inc. announced the launch of the Snapdragon 8s Gen 3 Mobile Platform, delivering premium features for next-level on-device generative AI topographies, photography, and gaming practices. The launch of the platform will provide customers with a personalized premium experience.

These factors will drive the market's growth in the coming years.

SEGMENTATION ANALYSIS

By Core Count

Increased Need for High-Performance Mobile Devices Boosted the Octa-Core Segment Growth

On the basis of core count, the market is categorized into single-core, dual-core, quad-core, hexa-core, octa-core, and others.

The octa-core segment held the largest market share in 2024 and is expected to record the highest CAGR during the forecast period. There is an increasing demand for high-performance mobile devices, such as tablets and smartphones. They require innovative processing competencies to handle resource-intensive applications. The rising implementation of AI and ML in industrial and consumer electronics applications has boosted the demand for robust computational power that is offered through octa-core SOCs. In addition, leading semiconductor firms continuously update and release innovative octa-core SOCs with advanced processing power, energy efficiency, and incorporated AI capabilities. Thus, these factors will drive the segment’s growth.

By Application

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Increasing Demand for Smart Devices and Advancements in Technological Innovations Drove Automotive Application Segment Growth

On the basis of application, the market is categorized into consumer electronics, automotive, network infrastructure, computing & data storage, healthcare, industrial, and others.

Moreover, the automotive application segment is expected to record the highest share and CAGR during the forecast period. The increase in technological advancements and the rising complexity of modern vehicles will drive the adoption of the product. From ADAS and autonomous driving to EV power management and infotainment organizations, SoCs are becoming crucial in producing safer, more efficient, and smarter vehicles. Therefore, the shift toward electric mobility demands advanced SoCs to manage complex vehicle systems effectively. For instance,

• January 2025: Honda Motor Co., Ltd. and Renesas Electronics Corporation signed a deal to develop a high-performance system-on-chip for software-defined vehicles. The launch of the new SoC will accelerate the integration of advanced semiconductor and software innovations into the Honda 0 Series, enhancing the mobility experience for customers.

The consumer electronics segment held the second largest global system-on-chip market share in 2024. The increasing use of tablets, smartphones, and other smart devices is fueling the growth of this segment. These products necessitate high-performance, compact, and power-efficient chips to deliver the necessary processing power for innovative features, which include high-definition gaming, video streaming, AI-based applications, and multitasking. Therefore, SoCs are crucial in achieving these requirements as they incorporate GPUs, CPUs, memory, and connectivity components under a single, effective unit. Therefore, this factor will accelerate the growth of the segment.

SYSTEM-ON-CHIP MARKET REGIONAL OUTLOOK

By region, the market is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

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North America held the highest market share in 2024. The region has been experiencing significant growth due to numerous factors, such as the growing demand for advanced consumer electronics and the expansion of the automotive industry. The region's strong technical infrastructure, combined with the presence of leading semiconductor firms, has driven innovation in SoCs. Furthermore, the rising adoption of IoT devices and rapid advancements in AI and machine learning technologies are driving the need for more sophisticated and effective SoC solutions.

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U.S.

Moreover, the SoC market in the U.S. is driven by the country's leadership in technological advancements and semiconductor manufacturing. The growing use of SoCs in several industries, including automotive, telecommunications, and consumer electronics, is contributing to the market’s growth in the country.

Asia Pacific

Asia Pacific is anticipated to witness the highest CAGR in the global market from 2025 and 2032. Countries including South Korea, Taiwan, and China are at the forefront of SoC production, catering to the increasing demand for automotive electronics, consumer electronics, and industrial automation. Moreover, the growing inclination of regional countries toward becoming self-reliant in semiconductor production has led to significant investments in SoC research & development in the last few years. This is anticipated to create lucrative growth prospects for the market in the coming years.

Europe

Europe is projected to exhibit steady growth over the forecast period. The market’s growth is owing to the region’s strong emphasis on automotive advancements, industrial automation, and energy-efficient technologies. The incorporation of SoCs in smart industrial systems and Electric Vehicles (EVs) is a significant growth driver for the regional market. Furthermore, the rising significance of Industry 4.0 and smart manufacturing across several regional countries is boosting the demand for sophisticated SoC solutions that can support high-performance computing and real-time data handling. This will drive the market’s growth.

Middle East & Africa and South America

The markets in the Middle East & Africa and South America are still emerging but have shown major potential. The increasing demand for consumer electronics, automotive applications, and industrial automation applications will drive the market’s expansion in regions. Furthermore, the integration of advanced electronics in the Middle East & Africa has led to the adoption of sophisticated SoCs that manage various functions, such as power distribution, flight control, and communication systems. This integration enhances aircraft performance, reduces weight, and improves fuel efficiency. Therefore, these factors will boost the market’s growth in these regions.

Similarly, the South American market is expected to grow moderately. Governments worldwide must invest significantly in research and development to support the development of the market. However, the region's economic challenges and incomplete technological infrastructure may constrain the market's growth.

COMPETITIVE LANDSCAPE

Key Industry Players

Market Players to Adopt Merger & Acquisition Strategies to Expand Their Operations

Prominent firms in the industry are actively broadening their global presence by introducing specialized solutions tailored to specific sectors. They are strategically forming partnerships and acquiring local businesses to establish a robust foothold in various regions. These companies are concentrating on creating effective marketing strategies and developing new solutions to maintain and grow their market share. Thus, the growing SoC demand is expected to create lucrative opportunities for the market players.

List of System-on-chip Companies Studied

• Broadcom, Inc. (U.S.)


• MediaTek Inc. (U.S.)


• Samsung (South Korea)


• Apple Inc. (U.S.)


• Qualcomm Technologies, Inc. (U.S.)


• Advanced Micro Devices, Inc. (U.S.)


• Intel Corporation (U.S.)


• NVIDIA Corporation (U.S.)


• Toshiba Corporation (Japan)


• Taiwan Semiconductor Manufacturing (Taiwan)


• Micron Technology, Inc. (U.S.)


• MediaTek Inc. (Taiwan)


• HiSilicon (China)


• Maxim Integrated Products, Inc. (U.S.)


• NXP Semiconductors (Netherlands)

KEY INDUSTRY DEVELOPMENTS

• January 2025: Qualcomm Technologies Inc. and Hyundai Mobis collaborated to revolutionize the next generation of High-Performance Computer (HPC) platforms. The partnership between the firms will result in the delivery of high-performance processing competencies and software platforms for the Flex SoC by supporting cockpit, Automated Driving (AD) functionalities, and Advanced Driver Assistance Systems (ADAS) on a single chipset. It will distribute performance, enhance safety, and increase efficiency for automakers across the globe.


• December 2024: Advanced Micro Devices, Inc. announced the introduction of the Versal RF Series adaptive SoC that incorporates high-purpose RF data converters, DSP hard IP, and programmable and logic AI Engines in a single-chip scheme. The introduction of the series will offer accurate, wideband-spectrum observability of up to 80 TOPS of Digital Signal Processing (DSP) performance in a weight, size, and power-optimized design. It will direct RF systems and test equipment applications in the test & measurement and aerospace & defense markets separately.


• January 2024: NXP Semiconductors N.V. announced the expansion of its automotive radar one-chip group to support ADAS designs for software-defined automobiles. This solution will aid carmakers in optimizing next-generation ADAS segregation for software-defined vehicles while offering a smooth transition to the latest architectures.


• November 2023: Broadcom introduced the industry’s first switch- NETGNT, with an on-chip neural network. The launch of the product created a broad portfolio of chips customized for different applications.


• September 2023: MediaTek collaborated with TSMC to introduce its first chip with the latter’s 3nm technology, copying out MediaTek’s flagship Dimensity System-on-Chip (SoC) through volume production, which is expected to commence next year. The collaboration between the firms will result in the launch of solutions of the highest quality and performance to global clients and enhance the customer experience in the flagship market.

INVESTMENT ANALYSIS AND OPPORTUNITIES

The system-on-chip market is focused on research & development activities to develop more advanced, efficient, and cost-effective solutions. Companies are gradually collaborating with small organizations, providing opportunities for mergers and acquisitions. Expanding their product offerings for new applications and industrial sectors gives enterprises a competitive advantage and helps them expand their offerings and reach across the global landscape. Emphasis on understanding customers' requirements and developing solutions that suit their needs and market trends also helps them acquire a new customer base. The companies’ collective technology and production capacity to develop and deliver quality and cost-competitive products can contribute rapidly to the market players' business growth.

REPORT COVERAGE

The report provides a detailed market analysis and focuses on key aspects, such as leading companies, product/service types, and leading product applications. Besides, it offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the market's growth in recent years.

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