System-On-Chip Market Size to Grow at 8.15 Per cent

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The covid-19 has had a limited impact on growth in the system-on-chip market. The large investments in developing technologies, and its reliable future application sheltered investments in chip designs in the market

According to Brandessence Market Research, the System-On-Chip Market is expected to grow at 8.15 per cent CAGR, as tech giants like Microsoft, Apple, Amazon, and others jump into the R&D for the ‘next big thing’ in chips catering to AI functions. System-on-chip or SOC are designed to be mini-computers with memory blocks, control units, timing units, and interfaces powered by a single chip. As demand for advanced chips to drive growth of small smart devices like wearable watches grows, the innovation remains key to growth of the SOC market.

“Demand for advanced functions like automated tracking, signaling, monitoring, connecting, and digital communication has led to robust innovation of advanced nano-chips. As demand for functionality rises, simultaneously, demand for smaller chips with more functions, storage, and faster speed rises,” read the report.

It continued, “Furthermore, horizons of AI have made conventional and essentially ‘reactive’ functioning module of chips, completely outdated. This has created a tremendous demand for completely new innovation in chips catering to AI-driven cars, telecommunication, consumer electronics, healthcare devices, and industrial applications.”

In December 2020, Microsoft announced that it is working on an in-house processor design to power a SOC chip for computers used in its data centers. According to Microsoft, this chip would enable the company to deliver features that would reduce its reliance on Intel’s technology. There are two main reasons for Microsoft to take this strategic direction.

On one hand, designing the future of smart computing and controlling is a key strategic advantage for a software maker. On the other hand, new generation chips are sought after by Microsoft’s key rival in the cloud business, Amazon. Amazon has reported that its newly designed SOC chips are ideally suited for advanced functions, while simultaneously bring down costs, and increase performance.

The covid-19 has had a limited impact on growth in the system-on-chip market. The large investments in developing technologies, and its reliable future application sheltered investments in chip designs in the market. However, the slowdown in venture investments to support new startups during the pandemic remained a minor restraint.

The growing relaxation in covid-19 norms around the world, and growing prospect of vaccination are likely to spur growth of investments in the near future, with technologies to build next-gen electric vehicles, smart devices, cloud adoption, and smart infrastructure remaining key to growth.

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