System on Chip – An IC that Integrates All Components of a Computer into a Single Chip

by Harry W. Analyst

System-on-chip (SoC) is an integrated circuit (IC) that assimilates the complex components of a computer or other electronic devices in a single chip, generally called microchip. The technology that we use today has become smarter and more complex. Whether it is our personal computers, smartphones, or other consumer electronic devices, they have become more dynamic and sophisticated to adapt to our changing preferences. A system-on-chip is embedded in such complex devices and it acts as their central processor.

Description of System on Chip Market -

Consumers nowadays demand highly power-efficient and smarter electronic devices. Additionally, the market for smart appliances and digital homes has registered tremendous growth in the last two decades. Such changes are largely attributed to advances introduced in device technology that have enabled the integration of billions of transistors on a chip with extremely high processing capabilities. Hence, the growth of the system-on-chip market is directly proportional to the increasing demand for embedded graphics and multicore technologies.

Increased Integration of SoCs across Smart Devices to Drive Global SoC Market

The applications of SoCs have tremendously increased in the last couple of years. The technology is now used across a myriad of smart electronics such as wireless communication equipment, smartphones, electrocardiogram (ECG) telemetry devices, automotive body electronics, and others.Increasing demand for energy-efficient devices has ushered in new developments in the technology, wherein the SoCs inbuilt in devices have become smaller in size, function faster than their predecessors, and consume less power. The global system-on-chip market is poised to grow exponentially with the evolution of SoC technologies and increased manifestation of Moore’s law. According to a report published recently by Transparency Market Research, the global system-on-chip market stood at US$35.95 billion in 2014. Exhibiting a healthy 10.5% CAGR, the market is likely to reach US$71.98 billion by 2021.

Asia Pacific Leads the Global SoC Market

Based on regional distribution, the global system-on-chip market encompasses North America, Europe, Asia Pacific, and Rest of the World. The demand for smarter electronics has been remarkably high in Asia Pacific, due to which the region led the global SoC market in 2014. North America emerged as the second largest SoC market the same year, followed by Europe. Higher application of SoCs in automotive applications and high demand for smart devices is fuelling the demand from the system-on-chip market in North America.

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In the last couple of years, the demand for connecting devices such as smartphones and tablets, among others, has increased significantly. Market expansion of devices such as smart air conditioners and smart television has been highly influential in fuelling the demand for SoCs. The demand for connected devices is directly related to the rise in the number of internet users around the world, which of course is increasing tremendously. Such devices with internet-oriented applications are mostly powered by SoCs. Hence, these factors act as growth drivers of the global SoCs market. Development of novel SoCs with multicore technologies has also played a significant role in boosting the global SoC market. The escalating demand for scalable and more compact ICs in the electronic industry is also expected to positively impact the global SoC market

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About Harry W. Advanced   Analyst

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Joined APSense since, June 17th, 2015, From california, United States.

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