System on Module Market Trends

Introduction

System on Modules (SoMs) are at the crossroads of many influences in 2024. These are rapid technological developments, growing regulatory pressures and changing consumer behavior. IoT and the demand for edge solutions are driving the need for more compact, efficient and versatile computing platforms. Likewise, regulatory frameworks for data security and sustainability are influencing the design and manufacturing processes in the industry. Strategically, the industry must master these influences, as they not only affect product development and innovation, but also determine the positioning of the company in an increasingly complex market environment.

Top Trends

1. Increased Adoption of IoT Solutions
   The growing importance of the Internet of Things (IoT) is causing a growing demand for system-on-modules (SoMs) that enable connection and data processing. SoM suppliers such as Advantech are introducing IoT-ready SoMs in anticipation of a forecast increase of 30 percent in IoT deployments by 2023. This trend will affect all industries, from smart cities to automation, and will lead to more integrated systems.
2. Focus on Edge Computing
   SoMs are increasingly used for edge computing. Companies like Axiomtek are developing SoMs which can process data in real time. Edge computing is expected to reduce latency by up to 50%. This trend is particularly important for industries which require immediate access to data, such as healthcare and manufacturing. It is also pushing the development of new system architectures.
3. Enhanced Security Features
   And with the increasing threat of cyber-attacks, the SoMs are also equipped with advanced security features, such as hardware-based encryption. National Instruments has reported a 40 percent increase in the number of SoMs for critical infrastructure applications. This trend has important implications for the security of sensitive data, compliance with regulations, and the priorities of the design and the market.
4. Miniaturization and Power Efficiency
   The trend towards smaller, more energy-efficient System-on-Modules is reshaping the product designs of many industries. Toradex is at the forefront of this trend, with its compact SoMs that consume a good 20 % less power than previous models. Miniaturization has opened up new possibilities for applications in portable devices, increasing the marketability of the products and driving innovation in the development of new products.
5. Integration of AI Capabilities
   Ai-integrated SoMs are becoming the key to differentiation in the market. Cognatec AG is developing SoMs with integrated Ai-processing power, which can increase the performance of machine learning applications by up to 60 percent. This trend will have a revolutionary effect on the automation industry, including the automobile and robot industries, and create new opportunities for intelligent automation.
6. Standardization of Interfaces
   The drive for standardizing the interfaces between the various SoMs has gained momentum, facilitating the integration and interoperability of these systems. The Avalue Technology Group, for example, claims that a standardized SoM can reduce the time taken to develop a system by up to 25%. This is an important trend, as it is expected to speed up the development cycle and facilitate collaboration between the various manufacturers.
7. Sustainability and Eco-Friendly Designs
   In the development of the SoM, the use of eco-friendly materials and the reduction of energy consumption are becoming a priority. The SoM that uses recycled materials is launched by the SoM. The SoM is expected to be affected by the trend of the SoM industry.
8. Expansion into Emerging Markets
   Growing urbanization and technological development in emerging markets are promoting the increasing use of systems-on-a-chip (SOC) in a variety of applications. SoM-based products are expected to grow by up to 35% in Southeast Asia over the next few years. This trend offers considerable opportunities for market expansion and diversification.
9. Collaboration with Software Ecosystems
   For the development of complete solutions, close collaboration between the SoM manufacturers and the software suppliers is becoming increasingly important. As a result, the quality and customer satisfaction of solutions have increased by 15%. This trend will foster innovation and will lead to a better user experience in many different areas.
10. Customization and Flexibility
    Demand for the possibility of modifying the SoMs to suit the requirements of individual companies is growing. For example, companies such as SECO spA offer SoMs in the form of a kit, which can be easily adapted, and which have led to a 20 percent increase in customer retention. This trend is crucial for the industries that require specialized solutions, as it enhances both their competitiveness and their customer retention.

Conclusion: Navigating the System on Module Landscape

As we approach the year 2024, the System on Module market is characterized by a highly competitive and fragmented market with a large number of competitors. The market is shared between old and new companies. The regional development is characterized by a growing demand for adapted solutions, especially in North America and Asia-Pacific, where innovation drives the market. Strategically, the companies must strategically position themselves in relation to the use of artificial intelligence, automation, and flexibility to achieve a competitive advantage. The large companies are focusing on developing their existing solutions, while the new companies are disrupting the market with agile and smart solutions. The ability to combine advanced technology and to respond to customer needs will be decisive for market leadership in this rapidly changing market.