System on Module (SoM) Market Size, By Product (ARM, x86 Architecture, Power Architecture), By Standard (Qseven, SMARC, COMExpress), By Application (Industrial Automation, Medical, Entertainment, Transportation, Test & Measurement), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2020 – 2026

Industry Trends

System on Module Market size estimated at around USD 1.5 billion in 2019 and is poised to grow at a CAGR of 10% from 2020 to 2026.
 

The proliferation of AI technology in embedded development is boosting the market revenue. The AI-infused embedded modules are widely adopted in object & facial recognition, virtual assistance, speech recognition, and other applications. SoM offers high-performance, low-power requirements, and improved connectivity, accelerating their demand in mobile devices, smart homes, and IoT devices. These benefits have led major market players to accelerate the development of AI integrated modules to gain high competitiveness among other companies.
 

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Rising development in autonomous & unmanned technologies and autonomous cars will drive the System on Module market demand. These modules are experiencing high integration in safety systems such as ADAS, powertrain & fuel injection systems, and infotainment systems. The increasing integration of electronic content in modern vehicles to support uninterrupted communication and wireless connectivity among vehicle systems will contribute to the market growth. Major players in the automotive industry, such as Ford, Tesla, and Renault, have already started their development of fully-autonomous models, fueling the SoM market expansion.
 

The COVID-19 pandemic has adversely affected the System on Module market with the delay in development of new products. This is majorly due to the lockdown imposed by several governments and international trade barriers, which led to a supply chain bottleneck for SoM manufacturers. The pandemic has also resulted in the temporary shutdown of several manufacturing plants in the automotive and consumer electronic sectors, restraining the market growth. However, the continuous development of wireless devices in the medical sector to remotely monitoring patients is accelerating the demand for system on module during the pandemic crisis. Additionally, the rising demand for advanced robotics in hospitals will impel the market value.
 

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New product development in ARM architecture will boost opportunities for the market size expansion

In 2019, the ARM architecture segment dominated a System on Module market share of 50% and is anticipated to witness over 11% growth rate through 2026. The growth is majorly driven by its lesser complexity compared to x86 processors, accelerating the adoption of ARM-based processors in various boards and modules. The demand for ARM processors in SoM is continuously increasing owing to their single cycle computing with reduced instruction sets.
 

ARM Holdings Corporation designs ARM architecture and provides a license to various market players to build their processors. Some of the leading manufacturers of ARM-based system on chips are congatec AG, Digi International, and Kontron. These companies are continuously involved in the development of new system on modules with the latest ARM processor technology to gain high competitiveness in the industry.
 

Increasing demand for COMExpress in high bandwidth applications

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The COMExpress segment in the System on Module market will exhibit significant growth during the forecast timeline impelled by its rising demand in the U.S. and other developed nations for embedded systems offering high-speed and connectivity. Companies offering SoM are widely adopting COMExpress modules for various high bandwidth applications such as general-purpose embedded computing, POS devices, and other communication technologies.
 

COMExpress-based computer on module is widely used as it offers standard board solution to developers and provides the flexibility for customized designs of the system. The manufacturers are offering pre-integrated application-specific modules, which are compatible with several real-time operating systems and multiple processor architectures. This also allows the customers to buy modules, which are compatible with their own custom-made carrier boards and eliminate the requirement of additional costs. Owing to this, COM Express modules are preferred for fast product developments.
 

Rising adoption of industrial robots in factories will fuel the market growth

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Industrial automation application segment held around 45% System on Module market share in 2019 and will expand at 12% CAGR till 2026. The proliferation of industrial robots in the manufacturing sector is contributing to the adoption of SoM in industrial automation. System on Module improves processing & machine operations and communication among factory equipment and industrial robots, accelerating market growth. South Korea holds the highest robot density that stands at over 600 robots per 10,0000 robots in the industrial sector.
 

Industrial automation includes large number of communication systems and sensors to communicate with multiple gateways, accelerating the demand for system on modules to deliver high productivity and connectivity in industry 4.0. The rising adoption of industrial and service robots to achieve high productivity in manufacturing will propel the market size.
 

Rising initiatives by the government will add an opportunity for the APAC industry expansion

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The Asia Pacific System on Module market accounted for 30% revenue share in 2019 and will register growth of more than 12% during 2020-2026. The increasing demand for efficient electronic components such as processors, boards, SoMs, SoCs, etc., from the highly growing consumer electronics sector in the APAC region, is providing significant growth opportunities to the market. The availability of raw materials in abundance is driving the electronics manufacturing sector in the Asia Pacific region. The flourishing IT & services infrastructure in countries including China and India is supporting the adoption of highly efficient embedded computing solutions and IoT technologies which provides an impetus for the industry growth.
 

Focus on new product development to stay competitive in the market

Key players operating in the System on Module (SoM) market are Advantech Co., Ltd., congatec AG, Eurotech, Inc., Kontron S&T AG, National Instruments Corporation, and VIA Technologies, Inc.
 

Comapnies are continuously focusing on new product development to cater to the high demand in new application verticals. For instance, in May 2020, Avnet developed its new system on module, “Avnet XRF16” for next-generation 5G connectivity. Companies are also inclined toward accelerating their research & development activities, propelling market growth. In April 2020, iENSO launched its new Allwinner SoM to deliver faster integration of image sensors and various peripheral technologies including displays & wireless.
 

The System on Module market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2016 to 2026 for the following segments:
 

Market, By Product

• ARM architecture
• x86 architecture
• Power architecture

Market, By Standard

• Qseven
• SMARC
• COMExpress
• Others

Market, By Application

• Industrial automation
• Medical
• Entertainment
• Transportation
• Test & measurement
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Spain
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Taiwan
  • Singapore
  • Malaysia
  • Thailand
  • Indonesia
  • Australia
• Latin America
  • Brazil
  • Mexico
• MEA
  • South Africa
  • GCC