Mobile SoC Market By Type (FHD SoC, UHD SoC), By Application (Residential Use, Commercial Use), By Region, And Segment Forecasts, 2023 to 2032

A system-on-chip (SoC) is a single integrated circuit that combines various components of a computer or electronic system into a single unit. SoCs play an important role in smartphones by providing the necessary computational power, graphics capabilities, connectivity, and other essential functions in a compact and energy-efficient framework. The combination of multiple components on a single chip improves the overall efficiency, performance, and power management of smartphones.

The mobile SoC market was valued at USD 0.7 billion in 2023 and is projected to reach 

USD 4 billion by 2033, growing at a CAGR of 17.8% from 2023-2033.The demand for advanced, power-efficient mobile devices is expected to drive significant growth in the mobile SoC market. Additionally, high-performance SoCs for AI in edge computing and the increasing adoption of smartphones in emerging markets offer lucrative growth opportunities.

Mobile SoC Market Dynamics: 

Drivers: Rise of 5G technology, demand for high-performance mobile devices and growth of the IoT.

-The deployment of 5G networks necessitates mobile SoCs with integrated 5G modems. These chips support faster data speeds, and lower latency and enable new mobile applications that leverage the power of 5G.

-Consumers are increasingly opting for smartphones and tablets with advanced features like high-resolution displays, powerful cameras, and immersive gaming experiences. Mobile SoCs with enhanced processing capabilities are crucial to deliver these functionalities.

-The proliferation of IoT devices, including wearables and smart home devices, creates demand for low-power, compact mobile SoCs that can support their functionalities.

Restraints: High costs of development, intense competition and security concerns.

-Designing and manufacturing advanced mobile SoCs with cutting-edge features requires significant investment in research and development. This complexity can limit market entry for smaller players.

-The mobile device market is highly competitive, with manufacturers constantly striving for lower prices. This can put pressure on mobile SoC vendors to reduce costs, potentially impacting chip quality or innovation.

-Security vulnerabilities in mobile SoCs can leave devices susceptible to cyberattacks. Balancing performance with robust security features is a challenge for manufacturers.

Opportunities: Focus on cloud-based processing, focus on integrated security solutions and focus on specialization & market segmentation. 

-Mobile SoCs can be designed to leverage cloud-based processing for intensive tasks while handling essential functionalities on-device. This approach optimizes performance and battery life.

-Developing mobile SoCs with built-in hardware-level security features and secure enclaves can enhance device security and protect user data.

-Mobile SoC manufacturers can cater to specific market segments by developing SoCs optimized for budget devices, high-performance gaming phones, or IoT applications.

Market By Mobile Soc Type Insights: 

Based on operating system, the market is segmented into Android and IoS. The Android segment is expected to lead the mobile SoC market in 2024 due to its larger market share, diverse device range and open-source architecture allowing for customization. Additionally, the focus on affordability by android manufacturers drives demand for cost-effective SoCs.

Based on core type, the market is segmented into quad-core, octa-core, hexa-core and others. Octa-core SoCs are expected to dominate the market in 2024 due to their balance of performance and efficiency, suitability for mid-range and high-end devices, and their ability to support multitasking with feature-rich mobile experiences. 

Market By End-Use Insights:

Mid-range smartphones, balancing features and affordability are expected to drive mobile SoC demand during the forecast period. They dominate due to their high market volume, value-focused performance and advancing technology, offering good camera capabilities and smooth multitasking at a reasonable price.

Market By Region Insights:

Based on regional coverage, the market is segmented into Asia-Pacific, North America, Europe, Latin America, Middle East and Africa. Asia-Pacific is expected to dominate the mobile SoC market due to its status as a manufacturing hub and high smartphone production. The region's rapidly growing smartphone market, driven by rising incomes and internet penetration, demands SoCs across all price segments. 

Competitive Scenario:

Key players include Qualcomm Incorporated, Apple Inc., Samsung Electronics, MediaTek Inc., and Huawei Technologies Co., Ltd.

Scope of Work-Mobile SoC Market

Key Market Developments:

• January 2022-The Snapdragon Ride Vision System, an Open and Scalable Platform for Automated Driving, was unveiled by Qualcomm Technologies, Inc., the industry leader in wireless technology. It is based on a four-nanometer (4nm) process technology system-on-a-chip (SoC) that is optimised for the implementation of front and surround cameras for automated driving and advanced driver assistance systems (ADAS).

• April 2021- Leading semiconductor manufacturer MediaTek Inc. announced the release of the flagship Dimensity 1200 processor System-on-Chip (SoC), which included improved connectivity, gaming, AI features, and a high-performance processor.

• September 2023-Apple revealed the release of its mobile SoC, the A17 Bionic, which is expected to power the iPhone 15 series and is intended to further refine the market demand for mobile SoCs.

Frequently Asked Questions (FAQs)

1. What is the size of the global mobile SoC market?

Ans. As of 2023, the mobile SoC market was valued at USD 0.7 billion.

2. What are the key drivers of the mobile SoC market?

Ans. Key drivers include the rise of 5G technology, demand for high-performance mobile devices and the growth of the IoT.

3. What are the major challenges in the mobile SoC market?

Ans. Challenges include high costs of development, intense competition and security concerns.

4. What are the growth opportunities in the mobile SoC market?

Ans. Opportunities include a focus on cloud-based processing, a focus on integrated security solutions and a focus on specialization & market segmentation.