System on Module Market

Surge in Demand for Portable and Wireless Devices

The increasing miniaturization of the system on module has resulted in optimum space and functionality, which is key requirements in portable and wireless devices. System on modules work on low power and offer balanced performance and, therefore, can be used in multiple handheld and portable devices. This allows developers to choose the platform best suited to their application needs. Developers can write application software on the same hardware that will be used in their final product.

Thus, the surge in the demand for portable and wireless devices is expected to drive the growth of the System on Module Market during the forecast period.

Wearable devices are miniature portable devices used on the human body, mainly integrated and designed to replace already existing accessories like a watch and other medical equipment. The market for wearable and portable devices is booming significantly owing to the use of IoT, artificial intelligence and machine learning technologies. Thus, the need for smaller, more intuitive devices is rapidly increasing. In addition to the end user market, the demand for devices to track physical conditions and functionalities in medical industry is expected to rise the penetration of system on module in upcoming years. 

For instance, in December 2022, Kopin Corporation, a developer and supplier of micro-displays and sophisticated optics for wearable headsets, developed a collaborative technology solution along with OPTAC-X, a telehealth company, and RealWear, hands-free and sturdy wearable headsets. OPTAC-X offers telehealth developed to enable first responders and medical personnel to save lives in battle and other dangerous situations with the help of optic technologies and aided reality wearable.

The Global System on Module Market Industry is poised for substantial growth, with projections indicating a market size of 3.2 USD Billion in 2024 and an anticipated increase to 7.64 USD Billion by 2035. This growth trajectory suggests a compound annual growth rate (CAGR) of 8.24% from 2025 to 2035. The increasing demand for embedded solutions across various sectors, coupled with advancements in technology, is likely to drive this expansion. As industries continue to embrace digital transformation and automation, the role of System on Modules in facilitating these changes becomes increasingly critical.

Technological advancements in embedded systems are propelling the Global System on Module Market Industry forward. Innovations in processing power, energy efficiency, and miniaturization enable SoMs to support complex applications in diverse fields. For instance, the integration of artificial intelligence and machine learning capabilities into SoMs enhances their functionality, making them suitable for applications such as robotics and automation. As industries increasingly rely on sophisticated embedded solutions, the market is poised for substantial growth. The anticipated compound annual growth rate (CAGR) of 8.24% from 2025 to 2035 reflects the ongoing evolution and demand for advanced embedded systems in various sectors.

The increasing adoption of Internet of Things (IoT) solutions is a primary driver for the Global System on Module Market Industry. As industries seek to enhance connectivity and automation, the demand for compact and efficient computing solutions rises. System on Modules (SoMs) provide an ideal platform for IoT applications, offering integrated processing, memory, and connectivity features. This trend is expected to contribute significantly to the market's growth, with projections indicating that the market will reach 3.2 USD Billion in 2024. The versatility of SoMs in various sectors, including healthcare, automotive, and smart cities, further underscores their importance in the evolving technological landscape.

The demand for compact and efficient computing solutions is a significant driver in the Global System on Module Market Industry. As devices become smaller and more portable, manufacturers are increasingly turning to SoMs to meet these requirements. SoMs offer a space-saving alternative to traditional computing architectures, allowing for streamlined designs without compromising performance. This trend is particularly evident in consumer electronics, where manufacturers seek to create lightweight and multifunctional devices. The market's growth trajectory, projected to reach 7.64 USD Billion by 2035, highlights the critical role of compact solutions in shaping the future of technology.

The automotive sector is increasingly adopting System on Modules, contributing to the growth of the Global System on Module Market Industry. With the rise of electric vehicles and advanced driver-assistance systems, the need for reliable and efficient computing solutions is paramount. SoMs enable the integration of various functionalities, such as infotainment, navigation, and vehicle-to-everything communication, within a compact form factor. This trend is likely to accelerate as automotive manufacturers seek to enhance vehicle performance and user experience. The expanding applications of SoMs in the automotive industry underscore their significance in the evolving landscape of transportation technology.

The Global System on Module Market Industry is experiencing growth due to the heightened focus on automation and Industry 4.0 initiatives. As businesses strive to enhance operational efficiency and reduce costs, the integration of advanced technologies becomes essential. SoMs facilitate the development of smart manufacturing solutions, enabling real-time data processing and analytics. This shift towards automation is evident across various sectors, including manufacturing, logistics, and agriculture. The ongoing investment in automation technologies is expected to drive the demand for SoMs, positioning them as a vital component in the transition to more intelligent and interconnected industrial environments.

By Region, the study segments the market into North America, Europe, Asia-Pacific, Middle East & Africa, and South and Central America. North America accounted for the largest share of revenue in 2022. The increasing uptake of wearable healthcare devices across developed economies is fueling the market. In addition, the rising penetration of IoT technology in North America will further accelerate the market growth. The presence of various companies such as Atmel Corporation, Intel Corporation, and Texas Instruments are contributing to the growth of the market by providing various systems to different industries to perform the task associated with their applications.

Also, the rising urbanization and demand for smart appliances and the presence of large-scale industries in the region are some of the major factors driving the market in the region

The Asia-Pacific region is expected to have the largest market CAGR in the system on module market. The flourishing IT & services infrastructure in countries, including China and India, is supporting the adoption of highly efficient embedded computing solutions and IoT technologies, which provides an impetus for industry growth. The increased demand for automated solutions in manufacturing industries for advancement will create market prospects in the Asia Pacific region. the adoption of IoT and advanced technologies by several organizations, led to surge the need for system on modules in Asia Pacific.

Further, the countries considered in the scope of the System on Module market are the US, Canada, Mexico, UK, Germany, France, Italy, China, Japan, Singapore, South Korea, South Africa, Saudi Arabia, United Arab Emirates, Brazil, Argentina, and others.

System on Module Market SIZE (USD MILLION) REGION 2022 VS 2032

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Major market players are spending a lot of money on R&D to increase their product lines, which will help the System on Module market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the System on Module industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.