SYSTEM ON A CHIP (SOC) MARKET ANALYSIS

System on a Chip (SoC) Market Size and Trends

Global system on a chip (SoC) Market is estimated to be valued at USD 206.26 billion in 2025 and is expected to reach USD 260.83 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 3.4% from 2025 to 2032.

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The market is expected to witness significant growth during the forecast period. Increasing proliferation of smartphones and other consumer electronic devices boosts demand for SoCs. These chips are increasingly being incorporated across various applications due to their ability to integrate multiple components into a single unit, thus, helping minimize costs while maximizing performance. Furthermore, rising adoption of artificial intelligence (AI) and Internet of Things (IoT) powered applications is driving the market growth. However, high costs associated with developing technologically advanced SoC solutions and the ongoing chip shortage may hinder the market growth.

Increased Adoption of IoT and Connected Devices

Rising internet of things (IoT) has created new opportunities for SoC products. Almost all IoT and connected devices such as smart home appliances, wearables, industrial sensors and equipment require an SoC to process data, connect to wireless networks and perform various functions. As more devices get added to the IoT ecosystem, there is a growing need for high performance yet low power SoCs that can power these devices. Major tech companies are launching new lines of connected devices every year for applications like home automation, industrial automation, healthcare etc.

This has prompted chip makers to focus on developing specialized SoCs for different IoT segments. For instance, there is demand for low cost and low power SoCs for applications like smart sensors as well as more powerful multicore processors for industrial gateway devices. The advanced features and functionality expected from new IoT products is pushing the limits of existing SoC designs, creating opportunities for next generation solutions. With 5G networks expected to roll out in the near future, it will open new possibilities for real-time IoT applications which require extremely low latency connectivity supported by powerful and efficient SoCs. Overall the proliferation of IoT devices across different sectors boosts demand for specialized and customized SoC solutions.

OMNIVISION introduced the industry's first 3MP resolution SoC for automotive cameras in January 2022. This SoC, with the lowest power consumption and smallest size, provides a seamless upgrade path for automotive OEMs, offering high performance with a small 2.1 µm pixel size in a 1/4-inch optical format.