Schedule a Meeting
Get a SampleMarch 2025
The global system on chip market size is calculated at USD 184.53 billion in 2025 and is forecasted to reach around USD 385.17 billion by 2034, accelerating at a CAGR of 8.52% from 2025 to 2034. Asia Pacific market size surpassed USD 69.72 billion in 2024 and is expanding at a CAGR of 8.65% during the forecast period. The market sizing and forecasts are revenue-based (USD Million/Billion), with 2024 as the base year.
The global system on chip market size was estimated at USD 170.04 billion in 2024 and is predicted to increase from USD 184.53 billion in 2025 to approximately USD 385.17 billion by 2034, expanding at a CAGR of 8.62% from 2025 to 2034. The increasing digitization and the demand for battery-operated smart devices accelerate the growth of the market.
The integration of Artificial Intelligence into the semiconductor industry and the expansion of edge computing accelerates the growth of the AI-powered system on a chip. AI enhances the power and storage capabilities of them, it helps to process large amounts of data locally with increased speed and accuracy and eliminates the dependencies on cloud infrastructure. The adoption of the AI SoCs (System on chip) in the automotive industry enhances the capabilities of infotainment systems, advanced driver-assistance systems, and autonomous vehicles. Players like Tesla and NVIDIA developed specialized automotive SoCs that deliver AI capabilities, robust connectivity, and real-time data processing.
Asia Pacific system on chip market size was exhibited at USD 69.72 billion in 2024 and is projected to be worth around USD 159.85 billion by 2034, growing at a CAGR of 8.65% from 2025 to 2034.
Asia Pacific dominated the system on chip market in 2024. The growth of the market in the region is owing to the growing industrial infrastructure and the rising awareness of the technologies among the population. The rising consumer base for compact or mobile devices is accelerating the demand for the system on chip for the single and centralized processing unit for the multiple essential components of the devices. The growing demand for autonomous vehicles also contributes to the growth of the system on chip market across the region.
China is one of the largest economies in the world, and the continuous rise in industrialization across the countries covering all industries with integrating smart technologies contributes to market expansion. A country like China is one of the largest producers of chips and semiconductors around the world. Government support for technological expansion and semiconductor manufacturing is collectively contributing to the growth of the system on chip market.
China’s semiconductor industry has acquired 650 cases of investment with a worth of 55 billion Yuan.
North America is expecting the fastest growth in the market during the predicted period. The growth of the market is attributed to the early adaptation of technologies in the region, and the growing investment in technological evaluation in the industries boosts the growth of the market. The rising industrialization in the regional countries, such as growth in the automotive sector, consumer electronics, healthcare, and others, and the integration of improved technologies into the industries driving the demand for the system on chips for better performance of the products that further contribute to the expansion of the market in the region.
The United States is one of the leading countries that majorly emphasize technologies in different industries. The country is the early adopter of technologies and a major developer of some of the leading technologies like artificial intelligence, automation, and others. The rising demand for autonomous driving technology in the country causes the demand for advanced driver-assistance system technology that boosts the demand for the system on the chip market. The availability of leading self-driving automotive players like Tesla and several others is contributing to the higher growth in the market.
Europe is expected to grow at a notable rate in the market during the predicted period. The rising trend towards digitization, automation, and technological advancements in automobile technologies is driving market growth. The rising demand for compact consumer electronics and the evaluation of the healthcare sector with the launch of wearable medical devices boost the growth of the market.
The system-on-chip is one of the modern types of integrated circuits that are used to combine all the system-required components. The adaptation of a system on the chip instead of the traditional processor types. It reduces the larger and separate system components. It helps in simplifying system operations with enhanced speed and power with the lesser need for power consumption. The system chip is the compact component that makes it the ideal solution for a wide range of applications such as AI, data centers, battery-operated devices like tablets and smartphones, and high-performance computing.
| Report Coverage | Details |
| Market Size by 2034 | USD 385.17 Billion |
| Market Size in 2025 | USD 184.53 Billion |
| Market Size in 2024 | USD 170.04 Billion |
| Market Growth Rate from 2025 to 2034 | CAGR of 8.52% |
| Dominating Region | Asia Pacific |
| Fastest Growing Region | North America |
| Base Year | 2024 |
| Forecast Period | 2025 to 2034 |
| Segments Covered | Type, Application, End Use and Regions. |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Demand from the healthcare industry
The rise in healthcare technologies for improving the different applications of the medical field. The integration of medical devices into healthcare applications for treatment, diagnostic, monitoring, and others boosts the demand for efficient processing technology that accelerates the growth of the market. The adaptation of the system-on-chip processor as the replacement of the traditional processing unit with higher power consumption, size, and functionality.
The system on the chip offers the miniaturization of medical devices, making them easy to handle. The rise in wearable healthcare devices for the continuous monitoring of patients, tracking blood pressure, heart rate, and glucose level. The inclusion of various medical devices into patient monitoring and increasing patient outcomes accelerate the market expansion.
Concerns related to the system-on-chip development
The system-on-chip offers several benefits in a wide range of industries. However, it comes with several associated challenges like design complexities, power management, higher manufacturing costs, thermal issues, and security concerns that limit the expansion of the system on chip market.
Advancements in system-on-chip
The evaluation of the semiconductor and the continuous investment in research and development of semiconductor manufacturing are driving the growth opportunity in the market. The evaluation of mobile systems on chips for enhancing the speed and operations of consumer electronics and automobile devices. The mobile system on the chip offers seamless multitasking, enhanced energy efficiency, high-speed communication, advanced multimedia capabilities, compact design, and others.
The digital segment dominated the system on chip market in 2024. The increasing demand for advanced consumer electronics products due to the rising awareness regarding technologies and the continuous expansion in digitization across the world is driving the demand for the digital system on a chip. The rising demand for digitally advanced gadgets like tablets, smartphones, and other advanced consumer electronic products is accelerating the growth of the segment. The digital system on the chip provides enhanced performance and speed of operations in consumer electronics and others. The evaluation of advanced technologies such as 5G infrastructure and integration of artificial intelligence into consumer electronics and devices are collectively contributing to the rising demand for the digital system-on-chip segment.
The mixed segment expects substantial growth in the market during the predicted period. The mixed system on chip is the bridge technology that is designed to combine analog and digital signals. The mixed system on chip consists the analog functions like amplifiers, sensors, analog-to-digital converters (ADCs), and digital components such as digital signal processors and microcontrollers. The mixed system on the chip works as the seamless integration between the analog signals and digital processing.
The portable electronic device segment led the system on chip market in 2024. The increasing prevalence of mobile or portable electronic devices such as tablets, smartphones, and other compact electronic devices boosts the demand for system-on-chip for efficient processing solutions. The compact structure or the design of the component on the chip is ideal for portable or mobile device processing. It helps in enhancing the performance of consumer electronic devices like tablets, smartphones, and others. It offers several benefits to portable electronic devices, such as it helps in reducing power consumption, streamlining the operation or processing with better speed, and enhancing user experience.
The advanced driver assistance systems (ADAS) segment expects notable growth in the market during the forecast period. The rising automobile industry and the continuous investment in the expansion of automobile technologies integrating autonomous and digitization. The increasing demand for self-driving cars is accelerating the demand for advanced driver assistance systems for enhancing safety features in automobiles. The system on chip is one of the most important parts of the advanced driver assistance systems for processing data from sensors, radar, and cameras.
The consumer electronics segment dominated the system on chip market in 2024. The increasing economic development and the growing disposable income in the population are driving the demand for technologically advanced consumer electronic products like smartphones, tablets, and other digitally advanced consumer electronics. The rising adaptation of the system-on-chip in consumer electronics is the major alternative to the traditional processing unit for enhancing the effectiveness of the product. The integration of the system on chip simplifies the design and development process; it helps in optimizing the performance of compact design devices, offers energy efficiency, and enhances performance and cost efficiency. The increasing demand for compact consumer electronics with reduced energy consumption properties accelerates the adoption of the system-on-chip in the consumer electronics industry.
The automotive and transportation segment expects significant growth in the market during the predicted period. The continuous evaluation in the automotive and transportation industry and the integration of advanced technologies boost the adaptation of the system on a chip. The rising inclination towards autonomous driving cars and the advanced driver-assistance system help in enhancing the security and safety of both the driver and mobility. The system on chip is the most important component in enabling the advanced driver-assistance system with autonomous functionalities.
The system on chips helps in analyzing the different advanced driver-assistance system applications such as adaptive cruise control, glare-free high beam and pixel light, adaptive light control, automatic parking, autonomous valet parking, navigation system, night vision, unseen area monitoring, automatic emergency braking, crosswind stabilization, driver drowsiness detection, driver monitoring system, and 5G and V2X.
By Type
By Application
By End Use
By Geography
For questions or customization requests, please reach out to us at sales@precedenceresearch.com
No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client
March 2025
January 2025
February 2025
October 2024