System On Chip (SoC) Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 – 2027) – Yahoo Finance UK
The system on chip (SoC) market is expected to reach USD 215. 16 billion by 2027, recording a CAGR of 7. 88% over the forecast period. The rising deployment associated with IoT technology and the increasing demand for smart plus power-efficient electronic devices are among the particular key factors driving the market’s growth.
New York, Nov. 03, 2022 (GLOBE NEWSWIRE) — Reportlinker. com announces the release of the report “System On Chip (SoC) Market – Growth, Trends, COVID-19 Impact, and Forecasts (2022 — 2027)” : https://www.reportlinker.com/p06360569/?utm_source=GNW
Key Highlights
The market sizing encompasses the particular revenue generated through the sales of SoCs in different regions. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the particular market estimations and development rates over the forecast time period.
The particular increasing penetration of 5G has further increased the demand with regard to 5G-enabled smartphones, contributing to the growth from the marketplace. For instance, according to the particular Consumer Technology Association (CTA), 5G smartphone sales were expected to generate USD 61 billion inside revenue (up by 404%) in 2021, and shipments were anticipated to be up by 530% from the previous year.
The growing demand for AI chip technology is also likely to boost the market’s growth on the forecast period, as AI chips typically come in the form associated with an SoC. These chips can process huge amounts of data, identify the underlying patterns, interpret the particular trends, and utilize the feed in order to achieve specific goals.
As technologies continues to evolve, several industries are usually adopting automation and digitization, thereby bringing opportunities to the particular key players for entering new markets. However, the initial R& D costs associated with the system on the chip (SoC) are high. Owing to the increasing customization of SoC for various products, the particular players need to focus on various R& D projects simultaneously, which usually increases their project costs. Such factors are expected in order to hamper the market’s development within the forecast period.
COVID-19 had a significant impact upon the market within several ways. The pandemic disrupted the particular supply chain for the entire semiconductor industry simply by complicating the particular shipping plus transportation activities and reducing access to labor. However, COVID-19 furthermore accelerated the demand regarding systems on chips (SoCs) by starting a new wave of digital transformation and remote work, which increased the demand for computing devices like laptops plus tablets.
Key Marketplace Trends
Increasing Investments in 5G and Growing Demand intended for 5G Smartphones
One of the key factors driving the growth of the particular market is the growing investments in 5G technology. As per GSMA, by 2025, 5G networks are expected to cover one-third of the world’s population. The organization also predicted that the number of 5G connections will surpass 1 billion by the end of 2022 and 2 billion simply by 2025, making up over a fifth associated with mobile connections.
A crucial element of initial 5G network rollouts has been field programmable gate array (FPGA) chipsets, an IC generally used in early commercial 5G solutions for its programmability and design flexibility. However, with this flexibility, there are some trade-offs, primarily less overall processing power. To get to the processing power necessary for 5G, there will be a requirement for the installation of multiple FPGAs, leading to the particular challenges associated with increased energy consumption, higher costs, plus larger-sized equipment. To address the industry’s high-volume mass production requirements and the need for more strength efficiency plus increased working frequency capabilities, many of today’s network technologies OEMs are usually moving in order to ASICs-based System-on-a-Chip (SoC) product designs.
With the industry solidified around the 5G NR standard, the transition to SoC-based radio technology presents the next phase of commercial 5G solutions. Current industrial solutions are moving away from programming or reconfiguring circuitry and designing permanent, application-specific circuits that consume less power. Consequently, SoC-based radio equipment is anticipated to enable 5G solutions that are more compact, simpler to deploy, and more power efficient.
Along with the rising investments in 5G, the particular demand to get 5G-enabled smartphones is also growing parallelly. For instance, as per the Consumer Technology Association (CTA), the revenues from 5G smartphones are expected to reach USD 61. 37 billion within 2022, up by 15% from UNITED STATES DOLLAR 53. 38 billion in 2021. 5G smartphones had been also estimated to make up 62% of all mobile phone units within 2021 plus rise in order to 72% in 2022. As such, many players are usually launching chipsets focused upon 5G to cater to this segment’s improving demand.
Asia-Pacific is Expected to Hold a Significant Market Share
Under the “Make In India” initiative launched by the particular Government of India, numerous companies have been investing in the Asia-Pacific countries.
In March 2022, UST, a digital transformation options company and Karnataka Information Technology Venture (KITVEN) Fund, through its Semi-Conductor Venture Fund plus Semiconductor Fabless Accelerator Lab, jointly invested in Calligo Technologies, a machine learning and data science products plus services company, with an aim to support the “Make In India” initiative.
Calligo Technologies is engaged in the development of a Posit-enabled RISC-V multicore processor (system-on-chip, SoC)) in order to power accelerator boards targeting the artificial intelligence (AI) segments and high-performance processing (HPC ). In line with this particular investment, Calligo plans to expand the software-only focus to silicon, software, firmware, board, plus applications across various emerging markets. Such initiatives by the companies, coupled with various government initiatives in the region, are expected to boost the demand pertaining to SoC potato chips in Asia-Pacific region during the prediction period.
Along with the increasing demand and advancing technologies for SoC chips in the market, various companies have already been launching new and innovative products within the market.
With regard to instance, in February 2022, Wipro Limited collaborated along with Intel Foundry Services Accelerator – Design Services Alliance with a try to assistance application-specific integrated circuit (ASIC) designs plus complex SoC used in the wide variety of products, ranging through sports cars to mobile phones.
Competitive Landscape
The system on chip (SoC) market is usually fragmented due to the particular presence associated with domestic and global gamers. Major players use different strategies, such as item launches, agreements, and acquisitions, to increase their footprints on the market. The particular key gamers in the market are Broadcom Inc., Intel Corporation, MediaTek Incorporation., Microchip Technologies Inc., NXP Semiconductors NV.
June 2022 – Samsung collaborated with Google to develop the 2nd Generation Tensor SoC, which would be integrated along with Google’s phones, including Pixel 7 plus 7 Pro. Samsung will be mass-producing Google’s second-generation Tensor chipset in the 4nmprocess, and it is expected in order to be released in October.
June 2022 – MediaTek introduced Dimensity 9000+, an upgrade to its top-of-the-line 5G smartphone processor. This brand new, high-end solution outshines Dimensity 9000 inside terms of performance, making the next generation of flagship smartphones more powerful and efficient.
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