System on Module Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

System on a Module (SoM) market is expected to grow significantly. It is estimated to reach $ 3.2 billion in 2024 and $ 6 billion in 2032. This represents a CAGR of 8.4 % for the forecast period. The growing demand for compact and energy-efficient computing solutions in various industries such as the automobile, automation and consumer electronics is driving the market growth. In addition, the integration of SoMs with IoT, AI and edge computing will increase their functionality and versatility, which will also drive the market. NXP Semiconductors, Texas Instrumens and Advantech, the leading SoM manufacturers, are continuously investing in research and development to enhance their product portfolios. Strategic initiatives, such as joint ventures and collaborations, are also becoming increasingly common as companies seek to take advantage of complementary technology and expand their market presence. These companies have recently launched SoMs with enhanced performance capabilities and energy-efficient designs, which are expected to grab a larger market share. This is in line with the trend of miniaturization and increased performance in embedded systems.

Regional Market Size

Regional Deep Dive

System on Module (SoM) market is experiencing considerable growth in all regions, driven by the growing demand for compact and efficient computing solutions in the field of embedded systems. In North America, the market is characterized by the presence of large technology companies and a strong innovation environment, especially in the fields of automotive, health and automation. Europe, with its diverse landscape, is characterized by the Internet of Things and smart manufacturing. Asia-Pacific is characterized by the fast growth of the manufacturing industry, which is based on the cost advantages and the availability of skilled labor. Middle East and Africa are slowly adopting SoM, influenced by government initiatives for digital transformation, while Latin America is beginning to look for SoM to increase its technological capabilities.

Europe

• The European Union's Green Deal is fostering innovation in the SoM market, as companies are developing energy-efficient modules to comply with sustainability goals, with organizations like STMicroelectronics at the forefront.
• The increasing adoption of Industry 4.0 practices is pushing manufacturers to integrate SoMs into their production lines, enhancing automation and data analytics capabilities, as seen in projects by Siemens and Bosch.

Asia Pacific

• China's aggressive push towards becoming a global leader in semiconductor manufacturing is significantly impacting the SoM market, with local companies like Rockchip and Allwinner Technology developing competitive SoM solutions.
• The growing demand for smart home devices in countries like Japan and South Korea is driving innovation in SoM technology, with companies such as Renesas Electronics focusing on creating modules that support IoT connectivity.

Latin America

• Brazil's investment in smart agriculture technologies is driving the demand for SoMs that can support precision farming applications, with local startups emerging to provide innovative solutions.
• The region's growing tech startup ecosystem is beginning to embrace SoM technology, with initiatives like Startup Brazil supporting the development of new applications in various sectors.

North America

• The rise of edge computing is significantly influencing the SoM market in North America, with companies like NVIDIA and Intel investing heavily in developing advanced SoM solutions tailored for AI and machine learning applications.
• In the meantime, a change of regulations in the automotive industry and the trend towards electric vehicles have led to a demand for more complex SoMs that can handle complex functions. For example, a company like Texas Instruments has been able to meet this demand with its SoMs.

Middle East And Africa

• Government initiatives in the UAE, such as the Dubai Smart City project, are promoting the adoption of SoMs in various applications, including smart infrastructure and public services.
• The increasing focus on digital transformation in Africa is leading to partnerships between local startups and global tech firms, fostering the development of SoM solutions tailored to regional needs.

Did You Know?

“Did you know that the first System on Module was developed to streamline the design process for embedded systems, allowing engineers to focus on application development rather than hardware integration?” — Embedded Systems Design Journal

Segmental Market Size

The System on Module (SoM) market is a significant part of the embedded systems market, which is currently experiencing a steady growth. The increasing demand for compact and energy-efficient computing solutions has led to the development of the SoM. The IoT and the need for shorter development cycles are also driving the SoM market. Advances in semiconductor technology are further increasing the performance and energy efficiency of SoM, further driving their adoption in various industries. At present, SoM is in a mature phase of adoption, with leaders like Intel and the popular raspberry pi providing robust solutions to the developer community. The SoM is used in several applications such as automation, medical devices, and smart home technology. The increasing trend towards remote monitoring and the growing focus on sustainability are driving the growth of the SoM market. The development of edge computing and artificial intelligence is shaping the evolution of SoM, enabling smarter and more responsive systems that meet the requirements of modern applications.

Future Outlook

The SoM market is set to grow from $3 billion in 2024 to $ 6 billion in 2032, with a strong CAGR of 8.4 percent. The growth will be driven by the growing demand for embedded systems from a wide range of industries, such as automotive, industrial automation and consumer electronics. The IoT market will continue to grow, which will further drive the need for small, efficient and powerful computing solutions. The SoM market is the right solution to meet these needs, since it offers a unified approach to integrating hardware and software components in a single package. In 2032, the SoM market will account for about 30 percent of the embedded systems market, which shows its importance in modern technology applications. Also, technological developments such as the integration of artificial intelligence and machine learning into SoMs will enhance their functionality and appeal. In addition, the need for energy efficiency and the development of sustainable electronic devices will lead to the development of SoMs that meet the stringent regulatory requirements for energy consumption. The SoM will be an essential part of the next generation of devices. As manufacturers continue to invest in R & D, the SoM market will continue to develop and offer new opportunities for growth and innovation in the coming years.