System on Chip (SoC) Market size is projected to witness robust expansion from 2022 to 2028. The higher adoption of responsive and low power consumption electronic devices that offer fast website loading times will accelerate the market growth. The increasing deployment of IoT technology has led to the emergence of new generation IoT devices such as FitBit and Alexa. Besides, the rise in R&D activities and technological advancements in production techniques is likely to present multiple growth opportunities for the SoC industry.
The growing popularity of smartphones among youngsters has paved the path for a rising preference for pocket-sized AI-powered devices. Furthermore, the influx of smart transportation and cities will act as a promising contributor to the market progression.
System on chip (SoC) is a complete electronic substrate system that comprises analog, digital, mixed-signal, and radio frequency functions. It essentially combines the required electronic circuits of several computer components onto a single, integrated chip (IC). However, the extensive research and high initial production & maintenance costs associated with the system on chips will negatively impede the SoC market demand to some extent.
On the basis of application, consumer electronics is expected to record substantial demand for SoCs. This is mainly ascribed to the rising penetration of smartphones attributed to the hiking household incomes of consumers. Owing to this trend, there has been a consistent need for compact and scalable ICs. Extensive uses across widespread applications for signal processing and wireless communication, among various others will additionally fuel the demand for the product in the coming years.
Asia Pacific system on chip market is set to pick up steam impelled by the growing demand for IoT-based consumer electronic products, such as smart TV, wearables, and mobiles in countries like India and China.
Major companies operating in the market are Intel Corporation, Qualcomm, Inc., Taiwan Semiconductor Manufacturing Co., Ltd., Broadcom Ltd. (Avago Technologies Limited), Apple, Inc., Spreadtrum Communications (Tsinghua Holdings), Huawei Technologies (Huawei Investment & Holding Co., Ltd), Toshiba Corporation, STMicroelectronics N.V. (STMicroelectronics) and Infineon Technologies. These firms are actively working towards inorganic strategies, such as innovations, mergers, partnerships, and acquisitions, in a bid to expand their product and customer base as well as sustain the increasing competition.
For instance, in March 2021, Samsung Electronics partnered with Marvell to jointly develop a novel System-on-a-Chip to offer enhanced 5G network performance. The newly launched chip finds usage in Samsung’s Massive MIMO and is anticipated to see its presence among Tier One operators by Q2 2021.
The ongoing COVID-19 pandemic significantly hampered the global economic dynamics as it laid tremendous impacts on several industries across the world due to the regulation of the varying degrees of lockdown and containment policies. This eventually led to the shuttering of almost all the non-essential businesses and facilities, placing negative outcomes on their operations and sales.
The SoC market was also at the receiving end of the brunt brought by the outbreak led by the disrupted supply chains given the dearth of raw materials required in making the chips. On account of the severity and implications of this industrial crisis, leading semiconductor participants are focusing on keeping the business continuity plans intact, maintaining cyber vigilance as well as bringing technology upgrades in response to the COVID-19 effects on the industry share in the post-pandemic era.