System on Module (SoM) Market: Global Industry Analysis and Forecast (2024-2030)

The System on Module (SoM) Market size was valued at USD 2393.92 Billion in 2023 and the total System on Module (SoM) revenue is expected to grow at a CAGR of 12.75% from 2024 to 2030, reaching nearly USD 5545.31 Billion by 2030.

The System on Module (SoM) market is rapidly evolving, driven by the increasing adoption of IoT-based technologies and the demand for embedded systems with high computing performance and low power consumption. SoMs offer significant advantages such as reduced development time, minimized risk, and scalability, making them ideal for a wide range of applications including IoT, industrial automation, medical devices, automotive systems, and edge computing. Technological advancements in wireless communication, intelligent sensors, and imaging solutions are further propelling System on Module (SoM) market growth. These advancements enhance the capabilities of SoMs, enabling applications in diverse sectors such as industrial automation, aerospace, defense, automotive, and IoT. The integration of advanced functionalities like Ethernet PHY and WiFi+BT modules in SoMs caters to the growing connectivity requirements of modern applications, from smart factories to electric vehicles.

In addition, the rising adoption of industrial robots, which heavily rely on embedded systems for their operations is further increasing the SoMs demand, thereby supporting the System on Module (SoM) market size. The International Federation of Robotics forecasts steady growth in robot installations all across the world, further boosting demand for SoMs in industrial sectors. Additionally, the proliferation of wireless and portable devices necessitates compact, high-performance computing solutions, driving miniaturization trends in SoMs. Technological advancements, such as the introduction of new solderable modules like iWave Systems' iW-Rainbow-G46M, based on advanced application processors, are enhancing System on Module (SoM) competencies. These innovations cater to evolving needs in IoT, AI, and machine learning applications, supporting the System on Module (SoM) market growth across diverse industries.

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System on Module (SoM) Market Dynamics:
Rising adoption of SoM in IoT and IIoT Applications

The rising adoption of 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. 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, 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 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

The expansion of AI and edge computing is significantly bolstering the demand for 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. 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, 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 2023 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 Date Acquisition, Medical Imaging, and others, which ultimately propel the growth of ARM-based System on Module (SoM) market.

In Dec 2019, 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 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 2023. 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 2023 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 2022.

Further, the NITI Aayog and Rocky Mountain Institute (RMI) predict that India's electric vehicle (EV) finance sector will reach INR 3.7 lakh crore (USD 50 billion) by 2030. Major automakers have begun investing extensively in various parts of the industry to meet rising demand in recent months. For instance, in March 2023, 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 SoMs. Lower production costs and economies of scale in these countries make SoMs more affordable and widely available. In addition, key players in the region are innovating and delivering advanced 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 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.
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Global System on Module (SoM) Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 2393.92 Bn.


Forecast Period 2024 to 2030 CAGR:
12.75%
Market Size in 2030:
US $ 5545.31 Bn.


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


by Standard
COM Express
Qseven
SMARC
ETX/XTX
Others


by Application
Medical Devices
Industrial Automation
Consumer Electronics
Robotics
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 Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Leading System on Module (SoM) Market Key Players:
1. ADL Embedded Solutions Inc
2. Atmel Corporation
3. National Instruments Corporation
4. Toradex AG, SolidRun Ltd.
5. MEN Micro Inc.
6. VIA Technologies Inc.
7. Infineon Technology
8. Intel Corporation
9. Texas Instruments
10. Technique Innovator Inc.
11. Advantech Sealevel Systems.
12. Connect Tech Inc.
13.  AAEON Technology, Inc
14.Avnet, Inc
15. EMAC Inc.
16. Avalue Technology Inc.
17. Axiomtek Co., Ltd.
18. Eurotech S.P.A.
19. Emerson Electric Co.
20. SECO S.P.A.

FAQs:
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 are 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 2393.92 Million in 2023 and the total System on Module (SoM) revenue is expected to grow at a CAGR of 12.75% from 2024 to 2030, reaching nearly USD 5545.31 Million by 2030.

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.