The System on a Chip (SoC) Market is estimated to be valued at US$ 164.45 Bn in 2023 and is expected to exhibit a CAGR of 8.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
A system on a chip (SoC) is an integrated circuit that integrates all the components of a computer or other electronic systems into a single chip. It integrates the advantages of combining various system components onto a single chip, making devices more compact and improve performance. SoCs are commonly used in high-performance computers, smartphones, tablets, embedded systems including Internet of things devices.
Market key trends:
The system on a chip (SoC) market is expected to witness high growth owing to the rising demand for high-computing devices across various industry verticals. Growing requirement for IoT enabled connected devices equipped with advanced processors is fueling the demand for advanced SoCs. For instance, the increasing adoption of AI and machine learning techniques is creating opportunities for development of specialized SoCs for AI applications. Further, the development of 5G networking infrastructure and deployment of 5G technology globally is also propelling the demand for 5G-enabled SoC devices. The integration of dedicated processors for graphics, video, audio on a single chip to enhance multimedia experience is another major trend. Launch of innovative SoCs by key players catering to emerging applications in areas such as autonomous vehicles, augmented reality, and wearable technologies is facilitating the market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the SoC market is moderate as significant investments are required for R&D to develop new chip technologies and the market is dominated by some major established players.
Bargaining power of buyers: The bargaining power of buyers is high as there are manySoC manufacturers and buyers can negotiate on price and quality.
Bargaining power of suppliers: The bargaining power of suppliers is low as there are many memory and sensor suppliers and manufacturers do not depend on a single supplier.
Threat of new substitutes: There is low threat of new substitutes as manufacturers are continuously investing in innovations to enhance chip performance.
Competitive rivalry: High as major players compete on technology, price and features.
SWOT Analysis
Strength: SoC offers integration of multiple components on a single chip reducing chip size and cost. Innovation is key strength of leading players.
Weakness: High investment costs for R&D and technological obsolescence poses risks. Supply chain disruptions can impact manufacturing.
Opportunity: Growing demand for smarter devices and IoT presents lucrative opportunities. Emerging 5G and AI technologies will boost adoption.
Threats: Trade wars and geo-political issues can disrupt global supply chains. Currency fluctuations impact profits of multinational corporations.
Key Takeaways
The global SoC market growth is expected to witness high growth, exhibiting CAGR of 8.0% over the forecast period, due to increasing demand for faster and power efficient computing in smartphones, tablets, and smart wearables.
Regionally, Asia Pacific dominates the SoC market currently due to strong manufacturing base of smartphone majors in countries like China and Taiwan and is expected to maintain its leading position during the forecast period.
Key players operating in the SoC market are Apple Inc., Huawei Technologies Co. Ltd., MediaTek Inc., Qualcomm Technologies Inc., Samsung Electronics CO. LTD., Intel Corporation, STMicroelectronics N.V., Toshiba Corporation, NXP Semiconductors N.V., and Broadcom Inc. Innovation through rapid advances in integrated circuit design technologies is crucial for these players to maintain an edge in this highly competitive market
Get more insights on this topic: https://www.newswirestats.com/system-on-a-chip-soc-market-industry-insights-trendssystem-on-a-chip-soc-market-2023-2030/
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