October 7, 2024 /SemiMedia/ — According to a new report by MarketsandMarkets, the market size for System-on-Chip (SoC) is projected to grow from 138.46 billion in 2024 to 205.97 billion in 2029, with a Compound Annual Growth Rate (CAGR) of 8.3% during the forecast period.

The report highlights that the growth of the SoC market is primarily driven by the increasing trend of SoCs in the automotive industry and the adoption of IoT and connected devices, which require SoCs for real-time processing. Furthermore, the proliferation of artificial intelligence and machine learning technologies is expected to stimulate demand for SoCs.

In terms of core architecture, RISC-V is anticipated to achieve a high CAGR within the SoC market during the forecast period. Given its advantages in flexibility, cost, and scalability compared to other architectures, RISC-V is poised to grow at a faster pace, driving its widespread adoption in diverse applications.

Additionally, the SoC market in the automotive sector is expected to grow at the highest CAGR during the forecast period. SoCs integrated into automotive applications enhance performance, reduce power consumption, and enable compact designs, making them essential for numerous vehicle systems. In particular, electric vehicles heavily rely on complex electronic devices for battery management, powertrain control, and energy efficiency optimization, all of which require advanced SoCs.

Regionally, the Asia-Pacific region is projected to have the highest CAGR during the forecast period. Due to the rapid growth of the consumer electronics and mobile device-related industries, the Asia-Pacific region remains the largest revenue source for the global SoC market. Countries such as China, South Korea, Japan, and India are considered major manufacturing hubs, producing the latest smartphones, tablets, and other consumer electronics products that require state-of-the-art SoCs to provide high performance, energy efficiency, and integrated functionality. Furthermore, the automotive and industrial automation sectors are another key driver of SoC market growth in the Asia-Pacific region.