System-On-Chip: Snapshot

System-on-chip is an important part of consumer electronics industry. It serves a dynamic range of applications in multiple end-use industries around the globe. The system-on-chip market is witnessing significant technological advancements across the industry and has witnessed significant growth during the last two decades due to the growing consumer electronics industry. The system-on-chip market is expected to grow significantly with focus on augmenting the rapidly growing applications ranging from smartphones to networking devices. The market for system-on-chip is forecast to quickly grow to US$ 206.79 Bn by 2026 at a CAGR of 11.0% during the forecast period.

The system-on-chip market has seen significant growth due to rising applications across end-use industries, with smartphones application holding the largest market share. Industries such as consumer electronics, telecommunication, and healthcare have been leading verticals in adopting system-on-chip technology so as to enhance the performance of smart devices, networking devices, and biomedical devices.

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Within application devices, smartphones and PC/laptops have been in the forefront, with networking devices and gaming consoles gaining momentum of late. A close study of recent product launches and developments of key industry participants active in the system-on-chip market reveals that industries such as consumer electronics, telecommunication, and healthcare would continue to dominate the market throughout the forecast period. Applications such as gaming consoles and digital cameras are expected to witness demand for the adoption of system-on-chip during the coming years, helping the system-on-chip market to take significant strides toward growth in the second half of the forecast period.

Factors such as rise in demand from smart devices, lowered cost per function of ICs, and the increasing demand for multicore technologies is seen as crucial aspects influencing the market growth trends. The system-on-chip market however faces challenges such as overlapping functionalities and the technological advancement in the form of new embedded software that has negatively affected further large scale proliferation of technology. The existing technology integration and overlapping functionality challenges give way to possible opportunities, such as improvement in the cycle time of the overall system and the 3D integration of system-on-chip. Any further development and exploration of the system-on-chip structure is expected to open new sets of unexplored opportunities, thereby supporting the growth of the system-on-chip market during the forecast period.

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Attracted by this fast expanding market and underlying latent demand, many players are driven to invest in the market for system-on-chip products and services. These factors have led companies to strengthen their foothold in the system-on-chip market. For instance, in September 2017, Apple Inc. deigned a new system-on-chip for the latest iPhone 8 named as A11 Bionic. A11 Bionic is a powerful and smart chip designed for a smartphone. A11 has a hexa core CPU that uses heterogeneous multiprocessing. New entrants may find it challenging to establish themselves in the market without a unique value proposition due to competition from established players such as Samsung Electronics Co. Ltd., Intel Corporation, Toshiba Corporation, Taiwan Semiconductor Manufacturing Co. Ltd. and others, which already have strong network and technology expertise in the market.

Some of the prominent players identified in the system-on-chip market and profiled in the study include – Apple Inc., Broadcom Limited, Infineon Technologies, Intel Corporation, Qualcomm Inc., Samsung Electronics Co. Ltd., STMicroelectronics N.V., Taiwan Semiconductor Manufacturing Co. Ltd., Toshiba Corporation, MediaTek Inc., Maxim Integrated Products, Inc., Microchip Technology Inc., Texas Instruments, and ON Semiconductor.

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