System on Chip (SoC) Market Size, Industry Outlook Report, Regional Analysis, Application Development, Price Trends, Competitive Market Share & Forecast, 2025 - 2034

System on Chip (SoC) Market Size

The global system on chip (SoC) market generated notable revenues in 2024 and is estimated to grow at a CAGR during 2025-2034, driven by highly integrated, efficient, performance and energy-oriented electronic devices in various end-use industries. SoCs combine several components (i.e., processor, memory, input/output ports, and secondary storage) into one microchip, leading to improved efficiency and lower power consumption. These characteristics make SoCs a key and essential component of modern smart devices, such as smartphones, wearables, automotive systems, and advanced industrial equipment. Thus, the consumer electronics industry has been positively impacting the growth of SoC because manufacturers in that sector deliver faster, smaller, and more powerful devices to serve evolving consumer expectations.
 

Artificial intelligence (AI), 5G connectivity, and the Internet of Things (IoT) penetrate the markets, and demand for intelligent and compact computing solutions accelerates in a fast & efficient way to deliver reliable and fixed costs. Additionally, as semiconductor manufacturing has improved rapidly, particularly in Asia Pacific, costs have dropped significantly, making them affordable and available. The System on Chip market should be able to sustain pressure through the only innovation and development that surrounds chip designs by key competitors in the market.
 

As smart devices like smartphones, smart TVs, tablets, and wearables are becoming widely adopted, there is an increasing demand for SoCs that greatly reduce hardware footprint and energy use while providing an enriched marketplace of functionality opportunities. As per Demand Sage.com, approximately 4.3 billion individuals own smartphones across the globe. With the launch of 5G and AI-enabled applications, there is now another need for higher-end SoCs that can accommodate higher speeds, better graphics, and improved connectivity.
 

While demand grows, the market has some restraints. High upfront development costs, complicated processes for manufacturing, and increasing complexities in design will impact new market entrants and product rollout cycles. In addition, there are supply-side risks that arise from geopolitical constraints on semiconductor supply chains and placing reliance on a limited number of foundries. The demand for more sophisticated SoC solutions continues even with these limitations, as the need for a more miniaturized form factor, with lower power consumption and a suite of functionalities in a single IC, also plays a role.
 

System on Chip (SoC) Market Trends

There are several trends emerging in the market. One of the notable trends in the system-on-chip (SoC) market is the increased integration of artificial intelligence (AI) and machine learning (ML) capabilities into SoC architectures. Overall, this trend serves the demand for intelligent edge computing devices, including voice-activated assistants, surveillance systems, and wearable health monitoring systems, that leverage the ability for real-time data processing with low latency. Another noteworthy trend is the emergence of purpose-built SoCs for 5G devices, which offer optimized performance in terms of better spectrum efficiency, higher supported data rates, and low-latency connectivity for consumer and industrial 5G applications.
 

There is also a growing trend toward energy-efficient computing, while manufacturers are innovating with increasingly smaller process nodes, like 5nm and down to 3nm designs, by offering improved performance-per-watt. The trend toward heterogeneous computing, where SoCs with CPUs, GPUs, NPUs, and/or other processing units co-exist on a single chip, is also increasing. In addition to improving multitasking, heterogeneous computing designs intended for SoCs help to reduce overall power in systems. Also emerging are customized SoCs for specific applications that emphasize structure in smart homes, medical diagnostics, and autonomous vehicles, highlighting the increased importance of application-specific architectures within SoCs.
 

System On Chip (SoC) Market Analysis

Consumer electronics segment generated notable revenues in 2024, fueled by high device connectivity expectations (Wi-Fi, Bluetooth, 5G). The consumer electronics segment has the most to gain from SoC integration from the continued expectation of higher device portability, more multifunctionality, and improved efficiency. The use of SoCs is necessary for devices that perform multiple tasks, including smartphones, tablets, laptops, and now smart watches and smart TVs that also require fast processing, battery life, and user experience with no dispute.
 

Manufacturers build new and improve existing SoCs with NPUs (neural processing units), ISPs (image signal processors), GPUs (graphics processing units), or anything else that makes their products better. Innovation is driving user expectations, and when comparing performance with efficiency, SoCs are perfect, having all the system components in one chip with an extremely small footprint. Moreover, the rise of AR (augmented reality), VR (virtual reality), and gaming consoles has increased the demand for faster SoCs to handle high-resolution graphics and multimodal immersive environments.
 

Customer demand for enhanced connectivity and wireless performance has accelerated the pace of innovation and responded to customer expectations in deploying new tech (e.g., Bluetooth, Wi-Fi, and 5G), contributing to a fast and reliable wireless experience. Given the pace of product cycles and innovation, the opportunity for products and licensing in the connected device arena is cyclical.
 

Asia Pacific system on chip (SoC) market is expected to grow significantly through 2034 due to the presence of many leading semiconductor manufacturing hubs such as China, Taiwan, South Korea, and Japan. The region houses some of the biggest foundries and chip design companies in the world and provides distinct advantages in low-cost manufacturing, rapid prototyping capabilities, and scaling complex SoCs (system on chips).
 

In addition, the consumption of consumer electronics in countries with large population densities such as India and China, has created strong demand for low-cost/high-performance devices using SoCs. Asia Pacific has seen increased government initiatives to grow domestic semiconductor capabilities, including funding models, developing infrastructure, and public-private partnerships. These strategies will help to lessen the reliance on imports and enhance the region’s self-reliant capability to manufacture chips.

Additionally, this region has seen the proliferation of 5G networks, smart manufacturing (or Industry 4.0), and connected devices, which are driving the requirement for high-performance SoC solutions. The automotive industry in these countries, particularly in Japan and South Korea, is also integrating SoCs into electric vehicle control systems and autonomous driving applications.
 

System on Chip (SoC) Market Share

Major companies operating in the system-on-chip (SoC) market include:

• Infineon Technologies
• Qualcomm, Inc.
• Spreadtrum Communications (Tsinghua Holdings)
• Apple, Inc.
• Broadcom Ltd. (Avago Technologies Limited)
• Huawei Technologies (Huawei Investment & Holding Co., Ltd)
• Intel Corporation
• Toshiba Corporation
• STMicroelectronics N.V. (STMicroelectronics)
• Taiwan Semiconductor Manufacturing Co., Ltd.
   

The market has seen companies use several strategies to gain market presence. The key has been investment in advanced fabrication technologies that allow for smaller, more efficient chips, with higher transistor density, which is showing different application areas. Most companies have also engaged in partnerships and collaborations with foundries, design tool companies, and OEMs to build their products quickly, at a lower cost, and get them to market quickly. Customization has become an important strategy, with companies creating application-specific SoCs for automotive, healthcare, and IoT requirements. Mergers and acquisitions have also been an important activity to increase their intellectual property or market access. In tandem, companies are trying to design sustainably, with energy efficiency and a smaller carbon footprint in SoC production.
 

System on Chip (SoC) Industry News

• In March 2025, Xiaomi representatives, after four years of behind-the-scenes work, entered the top league of smartphone chipmakers with the debut of the first in-house 3-nanometer system-on-chip, the Surge Xuanjie O1, and the first independently developed 4G baseband chip, the Xuanjie T1.
   
• In November 2024, Renesas Electronics Corporation launched the next-generation automotive fusion system-on-chip, designed to support various automotive domains such as Advanced Driver Assistance Systems, in-vehicle infotainment, and gateway applications—all integrated into a single chip.