System on Module Market Insights, Size, Share by 2031
The system module market size is projected to reach US$ 4713.86 million by 2031 from US$ 2331.95 million in 2023. The market is expected to register a CAGR of 9.2% during 2023–2031. Increasing use of sensors and MEMEs is likely to remain a key trend in the market.
System on Module Market Analysis
The worldwide lockdown to reduce the transmission of the virus has significantly disrupted the supply chain activities and production capacity across several manufacturers, particularly small and medium enterprise owners. The semiconductor industry was a significant contributor to the demand for electronic components from the industrial sector and end users. The revenue model for microelectronics has declined due to the lack of mass production during the lockdown period. The semiconductor industry gradually regained market share as production facilities restarted their operations by taking social distancing measures. Additionally, work-from-home and remote monitoring strategies also increased the sales of advanced electronics products for improved connectivity. IT and telecommunication industry importance have been highlighted for the communicational purpose, which acknowledged the industry to evolve with new technologies such as high-speed Wi-Fi compatible packaging technology.
System on Module Market Overview
A System-on-Module (SOM) presents the core components of an embedded processing system, such as memory blocks, communication interfaces, and processor cores, on a single production-ready printed circuit board (PCB). This modular approach makes a SOM suitable for embedding in end systems, from robots to security cameras. The concept of System-on-Modules evolved from blade servers. These thin servers were created to save storage space and reduce power consumption. The architecture of SOMs influences the lean design mentality behind blade servers. They include only the components required for their intended function in as small a package as possible, and they’re flexible enough to accommodate a wide range of applications.
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System on Module Market: Strategic Insights
Market Size Value in US$ 2,174.8 Million in 2022 Market Size Value by US$ 3,682.6 Million by 2028 Growth rate CAGR of 9.2% from 2022 to 2028 Forecast Period 2022-2028 Base Year 2022
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System on Module Market: Strategic Insights
| Market Size Value in | US$ 2,174.8 Million in 2022 |
| Market Size Value by | US$ 3,682.6 Million by 2028 |
| Growth rate | CAGR of 9.2% from 2022 to 2028 |
| Forecast Period | 2022-2028 |
| Base Year | 2022 |
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System on Module Market Drivers and Opportunities
Increased use of SOM in the electronics industry
As flexible core components, SOMs enable rapid development across various technological applications, from consumer electronics to industrial automation, making them essential in modern product design. In the rapidly evolving environment of electronics product design, the System on Module (SoM) methodology has emerged as a key source of transformation. As a result of its compact size, high performance, and cost-effectiveness, SoM is becoming a popular choice among designers and engineers. Therefore, the increased use of SOM in the electronics industry is driving market growth.
The SOM in portable and wireless devices in various industries
SoMs are used in portable medical devices where reliability and compactness are critical. For example, an SoM might be integrated into a handheld ultrasound device, providing the necessary processing power and connectivity in a compact form factor. SoMs are employed in advanced driver-assistance systems (ADAS) where they provide high-performance computing capabilities needed for real-time processing of sensor data. In industrial settings, SoMs are used in programmable logic controllers (PLCs) and human-machine interfaces (HMIs), offering robust and scalable solutions for complex automation tasks.
System on Module Market Report Segmentation Analysis
Key segments that contributed to the derivation of the system on module market analysis are component, hardware type, and application.
- Based on the component, the system on the module market is divided into hardware and software. The standard probe card segment held a larger market share in 2023.
- By hardware type, the market is segmented into arm, X86, POWER, FPGA, GPU, DSP, and RISC-V. The surface-mounted segment held a larger market share in 2023.
- By application, the market is segmented into industrial automation, entertainment, medical, transportation, test and measurement, video application, and others.
System on Module Market Share Analysis by Geography
The geographic scope of the system on the module market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
APAC dominates the system on module market. Many of the APAC countries are characterized by the quantity of electronic devices required for automotive components, telecommunication devices, consumer electronics, and other industrial types of machinery. The growing number of electronics manufacturing companies in China and India, due to the strong accessibility of skilled human resources, is driving the system on module market.
System on Module Market Report Scope
System on Module Market News and Recent Developments
The system on module market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the system on the module market are listed below:
- Toradex, a leading embedded systems solutions provider, launched its newest family of pin-compatible and scalable Systems on Modules (SoMs) - Aquila. (Source: Toradex, Press Release, April 2024)
- NetBurner announced the launch of its latest solution, the SOMRT1061 system-on-module (SOM). With performance in a small 25.4mm size, it’s ideal for use as a main system processor, a network sub-processor, or even an encrypted Serial to Ethernet server. (Source: NetBurner, Press Release, May 2024)
System on Module Market Report Coverage and Deliverables
The “System on Module Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- System on module market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- System on module market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- system on module market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the system on module market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component, Hardware Type, Application, and Standard
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The expected CAGR of the global system on module market is 9.2%.
The global system on module market is expected to reach US$ 4713.86 million by 2031
The increasing use of sensors and MEMEs is anticipated to play a significant role in the global system on module market in the coming years.
The key players holding majority shares in the global system on module market are Microchip Technology, Inc., Advantech Co. Ltd., SoMLabs, Axiomtek Co., Ltd., Connect Tech Inc., National Instruments Corporation, MAC, Inc., congatec GmbH, AAEON, Emcraft Systems, MIPS Technologies Inc., SiFive Inc., and Segate Technology LLC.
Increased use of SOM in the electronics industry and the SOM in portable and wireless devices in various industries are the major factors that propel the global system on module market.
APAC dominates the system on module market.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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