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Global System on Chip (SoC) - Market Size, Share, Industry Trends, and Growth Forecasts, 2026-2031 | Edge-AI, 5G, and Automotive Demand Propel Market to USD 249.19 Billion

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AMD AMD's EPYC 9005 using chiplet architecture is mentioned as increasing core density and managing thermal performance, contributing to the growth in data center demand for SoCs. AAPL Apple is mentioned as a hyperscale AI investor in North America, contributing to strong device demand and supporting the growth of the SoC market. ARM Arm CPU is mentioned in conjunction with NVIDIA's Jetson Orin for robotics and autonomous systems, and custom Arm-based processors are noted for data centers, indicating its role in the SoC market. GOOG Google is mentioned as a hyperscale AI investor in North America, contributing to strong device demand and supporting the growth of the SoC market. Its Tensor SoC is also listed. INTC Intel is mentioned as having new manufacturing projects under the CHIPS Act in North America, expected to expand regional capacity, indicating investment and growth in the semiconductor sector. MRVL Marvell Technology is listed as a company in the competitive landscape of the SoC market, but no specific product or performance is detailed. MU Micron's USD 2.75 billion Gujarat facility investment in India is mentioned, indicating expansion and growth in the semiconductor ecosystem. NVDA NVIDIA's Jetson Orin, combining an Ampere GPU and Arm CPU for robotics and autonomous systems, is highlighted as a key driver for Edge-AI growth. Its GPUs are central to AI workloads. NXPI NXP's S32 platform supporting zonal vehicle architectures is mentioned as a driver for automotive SoC growth, indicating its role in the expanding EV and autonomous driving market. QCOM Qualcomm's Snapdragon 8 Elite with advanced NPU and modem is cited as a key driver for 5G-enabled devices, demonstrating strong performance and innovation in the smartphone SoC market. STX STMicroelectronics is expanding 28 nm capacity in Europe to support automakers, indicating growth and strategic importance in the automotive semiconductor sector. TXN Texas Instruments is listed as a company in the competitive landscape of the SoC market, but no specific product or performance is detailed.

Global System on Chip (SoC) - Market Size, Share, Industry Trends, and Growth Forecasts, 2026-2031 | Edge-AI, 5G, and Automotive Demand Propel Market to USD 249.19 Billion Dublin, Oct. 27, 2026 (GLOBE NEWSWIRE) -- "System On Chip (SoC) - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

The global system on chip market was valued at USD 160.83 billion in 2025 and is expected to increase from USD 173.91 billion in 2026 to USD 249.19 billion by 2031. The market is projected to register a CAGR of 7.46% during the 2026-2031 forecast period. Growth is being supported by rising demand for 5G-enabled devices, Edge-AI systems, connected vehicles, industrial automation and high-performance computing.

5G-Enabled Devices Drive Advanced SoC Adoption

Fifth-generation networks require highly integrated SoCs that combine RF transceivers, millimeter-wave antenna support and power-efficient modems capable of sustained gigabit throughput. Global 5G handset shipments exceeded 700 million units in 2025, creating stable demand for flagship and mid-tier application processors. Qualcomm's Snapdragon 8 Elite, manufactured on a 3 nm node, combines a Hexagon NPU rated at 45 TOPS with an X80 modem. MediaTek's Dimensity 9400 is also extending advanced 5G performance into price-sensitive smartphone segments.

Integration of LPDDR5X and UFS 4.0 controllers helps reduce latency and power consumption while supporting premium mobile experiences. The transition to standalone 5G cores is also increasing demand for on-device inference and heterogeneous computing architectures.

Edge-AI and IoT Expansion Creates New Growth Opportunities

Industrial automation, smart cities, healthcare telemetry and connected infrastructure are increasing the number of endpoints that process data locally. Edge-AI processor revenue is expected to rise from USD 5 billion in 2024 to USD 21 billion by 2029, driven by vision processors, neural processing units and TinyML microcontrollers.

NVIDIA's Jetson Orin combines an Ampere GPU and Arm CPU in a compact module designed for energy-efficient robotics and autonomous systems. Healthcare wearables, including glucose sensors and ECG patches, are also supporting demand for mixed-signal silicon that integrates analog front ends with low-power controllers. Frameworks such as TensorFlow Lite Micro are expanding the range of AI workloads that can run on microcontrollers.

High Advanced-Node Costs Remain a Key Market Restraint

Sub-5 nm development costs continue to limit access to leading-edge manufacturing. Advanced tape-outs can exceed USD 500 million in non-recurring engineering expenses, while mask sets may cost as much as USD 30 million. These economics favor hyperscalers, premium smartphone vendors and established semiconductor companies while creating barriers for smaller fabless businesses.

Limited availability of high-NA EUV equipment, yield challenges and lengthy automotive qualification cycles are also raising production costs. As a result, the system on chip market is increasingly divided between leading-edge devices and cost-efficient products manufactured on mature process nodes. Export controls and supply-chain fragility add further uncertainty, although regional semiconductor subsidies are encouraging new fab investments.

Mixed-Signal and Chiplet Architectures Gain Momentum

Mixed-signal SoCs accounted for 30.73% of market revenue in 2025 due to their widespread use in smartphones, industrial gateways and automotive body modules. RF and connectivity devices are benefiting from Wi-Fi 7 and Bluetooth 5.4 deployment. Heterogeneous and fusion SoCs are forecast to expand at a 7.83% CAGR, supported by products that combine CPUs with specialized accelerators.

Chiplet-based architectures are enabling manufacturers to integrate advanced-node logic with analog and I/O dies produced on more economical processes. AMD's EPYC 9005 uses 3 nm compute chiplets with a 4 nm I/O die to increase core density while managing thermal performance. Similar architectures are emerging in automotive zonal controllers, where functional-safety microcontroller chiplets connect with AI computing clusters. Broader UCIe interoperability is expected to accelerate adoption across data centers, vehicles and industrial systems.

Automotive SoCs Record the Fastest End-User Growth

Consumer electronics represented 37.81% of the system on chip market in 2025, although longer smartphone replacement cycles are moderating volume growth. Data center demand is strengthening as hyperscalers introduce custom Arm-based processors, while communications infrastructure continues to benefit from 5G network densification.

Automotive revenue is projected to grow at an 8.03% CAGR, the fastest rate among end-user industries. Electrification, advanced driver-assistance systems and software-defined vehicle platforms are increasing semiconductor content per vehicle. Premium electric vehicles are expected to use five to seven high-performance SoCs in place of dozens of separate microcontrollers. Mobileye's EyeQ Ultra provides 176 TOPS for Level 3 autonomous driving, while NXP's S32 platform supports zonal vehicle architectures. Regulatory requirements for functional safety and demand for upgradeable features are expected to sustain long-term automotive SoC market growth.

Asia-Pacific Leads the Global System on Chip Market

Asia-Pacific held 46.92% of global revenue in 2025 and is forecast to grow at an 8.08% CAGR through 2031. Taiwan and South Korea continue to lead advanced semiconductor production, while China is expanding domestic 7 nm capacity. Samsung is scaling 3 nm gate-all-around manufacturing, and India is developing its semiconductor assembly and fabrication ecosystem through major investments, including Micron's USD 2.75 billion Gujarat facility.

North America accounted for approximately 28% of 2025 revenue, supported by strong device demand and hyperscale AI investment from Apple, Amazon, Microsoft and Google. New manufacturing projects under the CHIPS Act - including facilities operated by TSMC and Intel - are expected to expand regional capacity.

Europe generated approximately 18% of market revenue in 2025. Germany, France and the Netherlands remain important centers for automotive semiconductors and mixed-signal manufacturing. Regional investments are focused primarily on mature-node automotive chips, with STMicroelectronics and GlobalFoundries expanding 28 nm capacity to support long-term supply agreements with European automakers.

Key Topics Covered:

1 INTRODUCTION

1.1 Study Assumptions and Market Definition

1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET LANDSCAPE

4.1 Market Overview

4.2 Market Drivers

4.2.1 Soaring Demand for 5G-Enabled Devices

4.2.2 Rapid IoT and AI-Edge Proliferation

4.2.3 Automotive Shift to Centralized E/E Architectures

4.2.4 Subsidy-Fuelled Regional Fab Build-Out

4.2.5 Chiplet-Based Heterogeneous Integration Momentum

4.2.6 Edge-Native AI Model Inference Needs

4.3 Market Restraints

4.3.1 Escalating < 5 nm Design and Mask Costs

4.3.2 Export-Control-Driven Supply-Chain Fragility

4.3.3 Thermal-Density Limits in High-End SoCs

4.3.4 Immature Chiplet Interoperability Standards

4.4 Impact of Macroeconomic Factors

4.5 Value Chain Analysis

4.6 Regulatory Landscape

4.7 Technological Outlook

4.8 Porter's Five Forces

4.8.1 Bargaining Power of Suppliers

4.8.2 Bargaining Power of Buyers

4.8.3 Threat of New Entrants

4.8.4 Threat of Substitutes

4.8.5 Intensity of Competitive Rivalry

4.9 Chiplet Adoption and Disaggregation Trend Analysis

5 MARKET SIZE AND GROWTH FORECASTS (VALUE)

5.1 By Product Type

5.1.1 Digital SoC

5.1.2 Analog SoC

5.1.3 Mixed-Signal SoC

5.1.4 RF / Connectivity SoC

5.1.5 Heterogeneous / Fusion SoC

5.2 By End-user Industry

5.2.1 Consumer Electronics

5.2.2 Communications Infrastructure

5.2.3 Automotive

5.2.4 Computing and Data Center

5.2.5 Industrial and IoT

5.2.6 Healthcare and Medical Devices

5.3 By Process Node

5.3.1 ?28 nm

5.3.2 16/14 nm

5.3.3 10/8 nm

5.3.4 7/6 nm

5.3.5 5/4/3 nm

5.3.6 2 nm and Below / 3-DIC

5.4 By Application

5.4.1 Smartphones and Tablets

5.4.2 Edge-AI and IoT Devices

5.4.3 Servers and Data Centers

5.4.4 Automotive ADAS/Infotainment

5.4.5 Industrial Automation

5.4.6 Wearables and Smart Home

5.5 By Geography

5.5.1 North America

5.5.1.1 United States

5.5.1.2 Canada

5.5.2 South America

5.5.2.1 Brazil

5.5.2.2 Argentina

5.5.2.3 Rest of South America

5.5.3 Europe

5.5.3.1 Germany

5.5.3.2 France

5.5.3.3 United Kingdom

5.5.3.4 Italy

5.5.3.5 Spain

5.5.3.6 Russia

5.5.3.7 Rest of Europe

5.5.4 Asia-Pacific

5.5.4.1 China

5.5.4.2 Japan

5.5.4.3 South Korea

5.5.4.4 Taiwan

5.5.4.5 India

5.5.4.6 Rest of Asia-Pacific

5.5.5 Middle East

5.5.5.1 Saudi Arabia

5.5.5.2 United Arab Emirates

5.5.5.3 Turkey

5.5.5.4 Rest of Middle East

5.5.6 Africa

5.5.6.1 South Africa

5.5.6.2 Nigeria

5.5.6.3 Rest of Africa

6 COMPETITIVE LANDSCAPE

6.1 Market Concentration

6.2 Strategic Moves

6.3 Market Share Analysis

6.4 Company Profiles (includes Global-level Overview, Market-level Overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share, Products and Services, Recent Developments)

6.4.1 Advanced Micro Devices Inc.

6.4.2 Apple Inc.

6.4.3 Arm Holdings plc

6.4.4 Broadcom Inc.

6.4.5 Google LLC (Tensor SoC)

6.4.6 HiSilicon Technologies Co., Ltd.

6.4.7 Infineon Technologies AG

6.4.8 Intel Corporation

6.4.9 Marvell Technology Inc.

6.4.10 MediaTek Inc.

6.4.11 Microchip Technology Inc.

6.4.12 Nvidia Corporation

6.4.13 NXP Semiconductors N.V.

6.4.14 Qualcomm Technologies Inc.

6.4.15 Realtek Semiconductor Corp.

6.4.16 Renesas Electronics Corporation

6.4.17 Samsung Electronics Co., Ltd. (System LSI)

6.4.18 SiFive Inc.

6.4.19 Silicon Labs Inc.

6.4.20 STMicroelectronics N.V.

6.4.21 Taiwan Semiconductor Manufacturing Company Limited

6.4.22 Texas Instruments Incorporated

6.4.23 UNISOC Technologies Co., Ltd.

7 MARKET OPPORTUNITIES AND FUTURE OUTLOOK

7.1 White-Space and Unmet-Need Assessment

For more information about this report visit https://www.researchandmarkets.com/r/ppo7b1

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