System on Module (SoM) Market: Global Industry Analysis and Forecast (2025-2032)

The System on Module (SoM) Market size was valued at USD 2.5 Billion in 2024, and the total System on Module (SoM) revenue is expected to grow at a CAGR of 10.3% from 2025 to 2032, reaching nearly USD 5.5 Billion by 2032.
System on Module (SoM) Market – Overview
System on Module (SoM) is a small, modular computing solution that combines a system's major components—such as the processor, memory, power management, and communication interfaces—onto a single module. They are embedded within host carrier boards to enable faster product development and lower time-to-market. System on Module (SoMs) have transformed over the years to enable high-performance computing, AI processing, edge computing, and IoT applications in industries including automotive, industrial automation, medical devices, and consumer electronics. Increasing demand for high-performance, scalable, and space-saving embedded solutions is fueling market growth, particularly in regions with industrial automation and electronics manufacturing concentrated economies like the U.S., Germany, China, Japan, and South Korea.

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Fabricators are creating System on Module (SoMs) that are smaller, faster, and designed to address the demands of new intelligent systems. With the inclusion of sophisticated features such as GPU acceleration, wireless communication (Wi-Fi, Bluetooth, 5G), and secure boot mechanisms, System on Module (SoMs) are becoming central to the development of smart, connected devices.

The report covered in-depth analysis of key growth stimulants of System on Module (SoM) Market, like growing adoption of AI at the edge, growing usage of SoMs in robotics and medical imaging, and rising demand for modular embedded systems in product design. The report also segments the market based on processor architecture (ARM, x86, Power), application verticals, price band, and deployment sites.

Key industry participants in the System on Module (SoM) market are Toradex, Congatec, Kontron, Advantech, and Aaeon—organizations known to offer adaptable, high-performance computing modules. The report also analyse how technological innovations, increasing IoT usage, and modularity-based design trends are influencing the global System on Module (SoM) market dynamics.
System on Module (SoM) Market Dynamics:
Rising Adoption of SoM in IoT and IIoT Applications to Drive System on Module (SoM) Market Growth

The rising adoption of System on Module (SoMs) in IoT and IIoT applications is expected to be the major factor driving the system on module (SoM) market growth. This adoption is driven by their ability to provide a compact, integrated solution for diverse connected devices. System on Module (SoMs) offer a standardized hardware platform that includes processors, memory, storage, and connectivity options in a single module, reducing design complexity and time-to-market for IoT developers. This modularity enables easy integration of sensors, actuators, and communication interfaces essential for IoT ecosystems. Moreover, System on Module (SoMs) support scalability and customization, allowing developers to tailor solutions to specific application needs without starting from scratch. In IIoT, SoMs are crucial for enabling smart manufacturing, predictive maintenance, and real-time data analytics by providing robust computing power in industrial environments. Their small form factor and reliability make System on Module (SoMs) ideal for embedding into machinery, sensors, and control systems, facilitating seamless connectivity and enhancing operational efficiency across industrial sectors.

Expansion of AI and Edge Computing to Create System on Module (SoM) Market Opportunity

The expansion of AI and edge computing is significantly bolstering the demand for System on Module (SoMs) thanks to their capability to deliver powerful computing in compact form factors. This is further expected to be the major factor driving system on module (SoM) market size. AI applications, such as machine learning and computer vision, demand robust processing capabilities close to the data source to minimize latency and enhance real-time decision-making. System on Module (SoMs) integrate high-performance processors, GPUs, and specialized AI accelerators within a small footprint, making them ideal for edge devices like smart cameras, autonomous vehicles, and industrial sensors. These modules enable local data processing and analysis without relying heavily on cloud resources, ensuring data privacy, reducing bandwidth requirements, and improving system responsiveness. Moreover, System on Module (SoMs) support flexible deployment across diverse edge environments, accommodating varying power and size constraints while facilitating rapid deployment of AI-driven functionalities. As AI continues to permeate into everyday devices and industrial applications, SoMs play a crucial role in enabling efficient, scalable, and cost-effective edge computing solutions.
System on Module (SoM) Market Segment Analysis:
By type, ARM architecture dominated the System on Module (SoM) Market in 2024 and is expected to maintain its dominance during the forecast period. The growth is attributed to the rising adoption and production of ARM processor architecture-based systems on modules by various manufacturing companies globally. ARM SoM provides cost cost-effective embedded platform. ARM-based systems on the module are able to support Linux, Android & WinCE. ARM SoM is widely used for a variety of applications like Test and Measurement, IoT, Industrial HMI, Drone Payload, eBook Reader, Automation, Wearable, Industrial Control, Deep Learning, Remote Data Acquisition, Medical Imaging, and others, which ultimately propel the growth of ARM-based System on Module (SoM) market.

In Dec 2024, Variscite announced the launch of the VAR-SOM-MX8M-MINI System on Module, powered by NXP’s i.MX 8M Mini processor. The VAR-SOM-MX8M-MINI offers a low-power and cost-optimized solution with ultimate scalability options to suit a wide range of applications and cost requirements. It features up to 1.8GHz Quad-core ARM architecture-based Cortex-A53 plus a 400MHz Cortex-M4 real-time processor. The VAR-SOM-MX8M-MINI provides several interfaces including certified single band 802.11 b/g/n, 4.2 Bluetooth low energy, Gigabit Ethernet, dual USB2.0, CAN bus, and LVDS. It is designed to provide customers with an ultimately extended lifetime, flexibility, reduced development cost, risk, and time.

Based on the Application, the Industrial Automation and Robotics segment held a substantial revenue share of 35.37% and 23.45% respectively, in the global system on module (SoM) market in 2024. Robotics and industrial automation are revolutionizing the manufacturing enterprise through the production of autonomous machinery that is more efficient and productive. Manufacturers all around the world are deploying smart factories or Industry 4.0 technology to increase manufacturing output and save expenses. This increase in the need for smart devices resulted in a greater demand for embedded systems with better computational power and plug-and-play capabilities, creating a desire for small and powerful SoMs or CoMs. It enables speedier product development and deployment while being cost-effective. SoM allows for a faster launch of a new product in the market than traditional techniques. Furthermore, SoM allows for the use of sophisticated technologies like AI and ML to boost efficiency substantially.

The medical devices segment is expected to grow at the fastest CAGR and offer significant growth potential for the System on Module providers during the forecast period. The demand for SoMs has witnessed a significant upsurge in recent years. This is due to that embedded systems are critical in the production of a wide range of medical equipment, including portable diagnostic electronic devices and complex scanning tools. These systems are designed to perform specialized functions within larger equipment, serving as the brains of the operation. The introduction of enhanced processors, expanded memory capacity, and extensive connection options has boosted embedded systems' capabilities, allowing them to analyze and transmit data with remarkable speed and precision. This progress is important to enabling high-resolution, real-time imaging and seamless device functioning in today's healthcare setting. Additionally, the powerful security features and dependability offered by SoMs assure compliance with industry standards such as IEC 62304, assuring patient safety and data confidentiality. Thus, the increasing demand for SoMs in medical devices drives the segment growth, thereby boosting the system on module (SoM) market revenue size.
System on Module (SoM) Market Regional Insights:
Asia Pacific dominated the system on module (SoM) market with the highest market share of 45.21% in 2024 and is expected to maintain its dominance throughout the forecast period. Technological advancements, a booming electronics manufacturing sector, high demand for consumer electronics and IoT devices, a strong automotive sector, emerging technologies like 5G and AI, growing smart cities projects, and a strong presence of systems on module manufacturers and suppliers in the region are some of the major factors supporting the Asia Pacific system on module (SoM) market revenue during the forecast period.

Asia-Pacific is one of the most important markets for the automobile industry, owing to an increase in urban population and spending power. According to the China Association of Automobile Manufacturers (CAAM), approximately 965,000 passenger vehicles and 216,000 commercial automobiles were sold in China in April 2024.

Major automakers have begun investing extensively in various parts of the industry to meet rising demand in recent months. For instance, in March 2024, Taiwan-based tech company Foxconn announced that it is looking to invest in developing semiconductors and EVs in India.

Asia-Pacific, particularly countries like China, Japan, South Korea, Vietnam, Taiwan, etc., is a global manufacturing powerhouse for electronics. These countries' robust manufacturing infrastructure supports high-volume production and innovation in system on module (SoMs). Lower production costs and economies of scale in these countries make system on module (SoMs) more affordable and widely available. In addition, key players in the region are innovating and delivering advanced system on module (SoM) technologies that meet the stringent requirements of industrial IoT, smart manufacturing, and connected devices. For example,

Kontron introduced the SL i.MX8M Mini SoM, featuring a compact design (30mm x 30mm) and high-performance capabilities with 4x Arm Cortex-A53 processors and LPDDR4 memory. It targets computing-intensive applications and 3D visualizations, equipped with interfaces for IoT and Industry 4.0 deployments. Kontron's system on module (SoM) emphasizes simplicity, efficiency, and robustness, making it suitable for a wide range of industrial applications across Asia-Pacific.

Universal Scientific Industrial (USI) launched the MS-01 PRO WWAN and MS-01 WiFi System on Modules, designed for rugged handheld devices and tablet computers in industrial IoT applications. These modules leverage Qualcomm Snapdragon SD660 SoCs, offering robust wireless connectivity and meeting stringent environmental testing requirements. USI's modules are crucial components in developing Android-based rugged tablets and vehicle mount computers, catering to the growing demand for miniaturized, high-performance solutions in Asia-Pacific.
System on Module (SoM) Market Competitive Landscape
The System on Module (SoM) Market is competitive, spurred by innovation in embedded computing, edge AI, and industrial automation. Major companies such as Congatec (Germany) and Toradex (Switzerland) have a strong global presence, with Congatec posting around USD 185 million in revenue in 2024, driven by sales of its high-performance COM Express and SMARC modules. Toradex trailed with USD 122 million in revenues and 15% year-over-year growth backed by its ARM-based SoMs in robot and IoT applications. To keep ahead of competition, both firms are investing in AI-capable modules and scalable designs. Other leaders, including Advantech (Taiwan), Kontron (Germany), and Aaeon (Taiwan), are similarly increasing their lines of products with GPU-enabled and rugged modules, indicative of an industry-wide shift towards smart, modular, and industrial-grade computing solutions in worldwide markets.
System on Module (SoM) Market Trends
• Rising Adoption of Edge AI Computing: SoMs are increasingly integrated with AI/ML capabilities to enable real-time decision-making at the edge, especially in robotics, surveillance, and industrial automation.
• Miniaturization and Power Efficiency: Manufacturers are focusing on compact, low-power SoMs that fit into space-constrained applications like portable medical devices and drones.
• Modular and Scalable Design Demand: The need for flexible, upgradable systems is boosting demand for modular SoMs that support various processors, memory, and I/O configurations.

System on Module (SoM) Market Key Development

1. Switzerland (2024) – Toradex unveiled the Aquila iMX95 SoM in August 2024, powered by NXP’s i.MX 95 SoC and pre-integrated with its Torizon Industrial Linux platform. This high-performance module is targeted at demanding edge AI applications, with mass production slated for mid-2025
2. Germany (2025) – At Embedded World 2025, congatec introduced the conga TC750 COM Express Compact module, delivering up to 99 TOPS of AI performance via Intel Core Ultra processors, along with an innovative acetone-based heat-pipe cooling solution suitable for extreme environments
3. Switzerland (2025) – Toradex launched its first SMARC-compliant SoMs based on NXP i.MX 8M Plus and i.MX 95 in early 2025, offering improved supply-chain flexibility and long lifecycle support.
4. Australia (2025) – In April 2025 at ElectroneX (Melbourne), congatec showcased its COM HPC Client/Server systems, SMARC modules (conga SMX95), and rugged edge-server solutions, emphasizing modular, high-performance building blocks for industrial automation.
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Global System on Module (SoM) Market


Report Coverage
Details


Base Year:
2024
Forecast Period:
2025-2032


Historical Data:
2019 to 2024
Market Size in 2024:
USD 2.5 Bn.


Forecast Period 2025 to 2032 CAGR:
10.3%
Market Size in 2032:
USD 5.5 Bn.


 Segments Covered:
by Type
ARM Architecture
x86 Architecture
Power Architecture
FPGA Architecture


by Standard
COM Express
Qseven
SMARC


by Application
Industrial Automation
Robotics
Medical Devices
Consumer Electronics
Automotive
Other



System on Module (SoM) Market, by Region
North America (United States, Canada, and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria, and the Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, ASEAN, Indonesia, Philippines, Malaysia, Vietnam, Thailand, ASEAN, Rest of Asia Pacific)
Middle East & Africa (South Africa, GCC, Nigeria, Rest of ME&A)
South America (Brazil, Argentina, Rest of South America)
System on Module (SoM) Market, Key Players:
North America
• Digi International Inc. – United States
• AAEON USA (subsidiary of AAEON) – United States
• National Instruments Corporation – United States
Europe
• Congatec GmbH – Germany
• Kontron AG – Germany
• Emtrion GmbH – Germany
• Phytec Messtechnik GmbH – Germany
• Toradex AG – Switzerland
• SECO S.p.A. – Italy
Asia-Pacific
• Advantech Co., Ltd. – Taiwan
• Aaeon Technology Inc. – Taiwan
• VIA Technologies Inc. – Taiwan

Frequently Asked Questions:

1. What are the growth drivers for the System on Module (SoM) market?
Ans. The increasing demand for embedded technologies, industrial automation, and compact modular designs is expected to be the major drivers for the System on Module (SoM) market.

2. What are the factors restraining the global System on Module (SoM) market growth during the forecast period?
Ans. The complexities in integrating electronic devices, rising costs associated with advanced technology components, and challenges in finding qualified specialists or operators are expected to be the major factors restraining the global System on Module (SoM) market growth during the forecast period.

3. Which region is expected to lead the global System on Module (SoM) market during the forecast period?
Ans. North America is expected to lead the global System on Module (SoM) market during the forecast period.

4. What is the projected market size and growth rate of the System on Module (SoM) Market?
Ans. The System on Module (SoM) Market size was valued at USD 2.5 billion in 2024 and the total System on Module (SoM) revenue is expected to grow at a CAGR of 10.3% from 2025 to 2032, reaching nearly USD 5.5 billion by 2032.

5. What segments are covered in the System on Module (SoM) Market report?
Ans. The segments covered in the System on Module (SoM) market report are Type, Standard, Application, and Region.