Global System on Module Market Size Likely to Grow at a CAGR of 9.2% By 2033

As per the current market research conducted by the CMI Team, the global System on Module Market size is expected to record a CAGR of 9.2% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 2,824.1 Million. By 2033, the valuation is anticipated to reach USD 6,235.5 Million.

System on Module Market: Growth Factors and Dynamics

• Rising Demand for Compact and Integrated Solutions: SoMs offer compact, integrated computing solutions suitable for diverse applications like IoT, industrial automation, and consumer electronics, driving demand across industries seeking space-efficient and cost-effective solutions to streamline operations and reduce footprint.

• Advancements in Semiconductor Technology: Continuous advancements in semiconductor technology, including improvements in processing power, energy efficiency, and integration capabilities, enhance the performance and appeal of SoMs for next-generation applications requiring higher computational power and energy efficiency.

• Increasing Adoption of IoT and Edge Computing: The proliferation of IoT devices and edge computing applications fuels the demand for SoMs, which provide robust processing capabilities and connectivity options crucial for edge computing environments where data processing and decision-making need to occur in real-time closer to the data source.

• Growing Emphasis on Customization and Time-to-Market: SoMs enable faster time-to-market for product development by reducing design complexity and allowing for customization of functionalities. This flexibility appeals to manufacturers looking to differentiate their products quickly and efficiently respond to market demands with tailored solutions.

• Expansion of Industry 4.0 and Smart Manufacturing: SoMs play a pivotal role in Industry 4.0 initiatives by supporting automation, connectivity, and data processing in smart manufacturing environments. They facilitate the implementation of advanced manufacturing technologies such as robotics, predictive maintenance, and digital twins, enhancing productivity and efficiency.

• Increasing Investments in AI and Machine Learning: The integration of AI and machine learning capabilities into various applications, from edge devices to cloud services, drives demand for SoMs capable of supporting these advanced algorithms and processing requirements. SoMs enable efficient deployment of AI models for real-time data analysis, predictive analytics, and intelligent decision-making across industries.

• Scalability and Modularity for Future-Proofing: SoMs offer scalability and modularity, allowing businesses to future-proof their technology investments. This capability supports seamless upgrades and expansions as application requirements evolve, making SoMs attractive for long-term deployment in dynamic and growing markets like IoT, telecommunications, and automotive sectors.

System on Module Market: Partnership and Acquisitions

• In 2022, Deutsche Beteiligungs acquired Cognate AG for around US$136 million to bolster its market capabilities. The acquisition strategically expands Deutsche Beteiligungs’ footprint and strengthens its portfolio, particularly in sectors where Cognate AG excels, thereby enhancing its competitive position in the market.

• In 2021, SoMLabs and e2-s have partnered to co-design custom products based on System on Modules (SoMs), leveraging their respective expertise in embedded systems and hardware integration. Meanwhile, Tata Sons and Singapore Airlines’ joint venture with Vistara introduces RADA, an AI robot that enhances customer experiences and automating routine tasks.

Report Scope

System on Module Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the System on Module Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Impact on Supply Chain Disruptions: The COVID-19 pandemic disrupted global supply chains, causing delays in component deliveries and manufacturing of SoMs. This led to production slowdowns and challenges in meeting demand, particularly affecting industries reliant on timely technology upgrades and deployments.

• Shift in Demand Dynamics: The pandemic altered demand dynamics for SoMs as businesses adjusted priorities. While sectors like healthcare and telecommunications saw increased demand for SoMs to support remote healthcare and digital connectivity, other sectors faced reduced investments due to economic uncertainties and budget constraints.

• Accelerated Digital Transformation Efforts: Post-pandemic, businesses accelerated digital transformation initiatives, driving demand for SoMs capable of supporting IoT, edge computing, and AI applications. This surge in digital adoption spurred growth in SoM sales across industries seeking to enhance operational efficiency and resilience.

• Focus on Resilient Supply Chains: To mitigate future disruptions, SoM manufacturers and suppliers diversified their supply chains and enhanced inventory management systems. This resilience-building approach ensured smoother operations and timely deliveries, restoring confidence among customers and supporting market recovery.

• Increased Investment in Healthcare Technologies: The healthcare sector, bolstered by pandemic-related challenges, intensified investments in digital health technologies. SoMs played a crucial role in enabling telehealth solutions, remote patient monitoring systems, and healthcare IT infrastructure upgrades, driving sustained demand and market growth.

• Expansion in IoT and Edge Computing Applications: Growth in IoT and edge computing applications post-pandemic fueled demand for SoMs tailored for these environments. Industries such as manufacturing, automotive, and smart cities invested in SoMs to support real-time data processing, decentralized computing, and smart device connectivity.

• Emphasis on Sustainability and Energy Efficiency: Post-COVID-19, there was an increased focus on sustainability and energy efficiency across industries. SoM manufacturers responded by developing energy-efficient solutions and eco-friendly manufacturing practices, aligning with market trends and regulatory requirements to support sustainable development goals.

In conclusion, the COVID-19 pandemic has had a mixed impact on the System on Module Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the System on Module Market:

• Advantech Co. Ltd.
• NXP Semiconductors N.V.
• Kontron S&T AG
• Intel Corporation
• Renesas Electronics Corporation
• Toradex Systems (India) Pvt. Ltd.
• NVIDIA Corporation
• Texas Instruments Incorporated
• Qualcomm Technologies Inc.
• STMicroelectronics N.V.
• Microchip Technology Inc.
• Arm Holdings plc
• AMD (Advanced Micro Devices) Inc.
• Xilinx Inc.
• Aaeon Technology Inc.
• Others

The System on Module Market is segmented as follows:

By Architecture

• ARM Architecture
• x86 Architecture
• Power Architecture
• Others

By Application

• Industrial Automation
• Consumer Electronics
• Healthcare
• Automotive
• Telecommunications
• Others

By Connectivity

• Wireless Connectivity
• Wired Connectivity

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America