System on Module (SoM) Market – Global Industry Size, Share, Trends, Opportunity, and Forecast Segmented By Type (ARM Architecture, X86 Architecture, Power Architecture), By Standard (COM Express, SMARC, Qseven, ETX/XTX, COM-HPC, and Others), By Application (Industrial Automation, Medical, Entertainment, Transportation, Test & Measurement, and Others), By Region, Competition, 2020-2030F

Market Overview

The Global System on Module (SoM) Market will grow from USD 3.16 Billion in 2024 to USD 7.45 Billion by 2030 at a 15.36% CAGR. A System on Module (SoM) is a compact, embedded board that integrates essential system functionalities, including a microprocessor, memory, and various interfaces, onto a single production-ready circuit board designed for seamless integration into a larger end system. The market for these modules is significantly driven by the accelerating demand for faster product development cycles, the inherent cost optimization benefits of modular design, and the escalating complexity of embedded applications requiring pre-validated, robust computing solutions across industrial automation, IoT, and edge computing sectors. According to the Semiconductor Industry Association (SIA), global semiconductor sales reached $627.6 billion in 2024, underscoring the foundational component market's substantial scale.

Despite these growth factors, the market faces a notable challenge in the persistent volatility and potential for disruption within the global supply chain for critical electronic components. This can impede manufacturing stability and overall market expansion. Additionally, complexities associated with hardware and software integration, alongside the need for specialized engineering expertise, can present adoption barriers for certain applications.

Key Market Drivers

The Global System on Module (SoM) market is significantly driven by the expanding adoption of Internet of Things (IoT) and Industrial IoT (IIoT) solutions. These interconnected ecosystems necessitate compact, reliable, and power-efficient computing units capable of rapid deployment across diverse environments, from smart infrastructure to factory floors. SoMs address these needs by integrating essential functionalities onto a single production-ready board, thereby accelerating product development and reducing design complexities for IoT device manufacturers. The sheer scale of this transformation is evident as, according to GSMA, in February 2025, the number of IoT devices worldwide is projected to exceed 25 billion, underscoring the immense demand for pre-validated, embedded processing capabilities. Concurrently, the rapid rise of Artificial Intelligence (AI) and edge computing applications represents another critical market accelerator. Edge AI demands substantial local processing power to minimize latency, reduce data transmission costs, and enable real-time analytical tasks in environments with limited or intermittent connectivity. SoMs provide the requisite high-performance, energy-efficient solutions to implement complex AI algorithms directly at the data source, optimizing operational efficiency and enabling advanced autonomous systems and intelligent industrial equipment. For instance, according to Siemens, in November 2023, the company announced a new $150 million smart factory in Dallas-Fort Worth, specifically leveraging IoT and AI software tools for digital twin and factory automation technology, demonstrating tangible industrial investment in integrated edge solutions.

These critical drivers highlight an industry trend toward more intelligent, connected, and autonomous operations, where the modularity and integration benefits of SoMs are crucial. SoMs enable businesses to reduce development risks and achieve faster time-to-market for sophisticated embedded applications in sectors like industrial automation and medical devices. This strategic advantage enhances demand for versatile embedded processing solutions, underpinning the growth in related technology segments. According to Arm Holdings' financial reports, for the twelve months ending March 31, 2025, the company's revenue was $4.01 billion, reflecting robust demand for foundational intellectual property vital for these advanced embedded systems.

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Key Market Challenges

The persistent volatility and potential for disruption within the global supply chain for critical electronic components significantly hampers the growth of the Global System on Module (SoM) Market. Such disruptions lead directly to extended lead times and unpredictable availability of essential microprocessors, memory, and interface components necessary for SoM production. This instability creates considerable challenges for SoM manufacturers, causing delays in manufacturing schedules and hindering their ability to consistently meet customer demand.

Moreover, supply chain volatility directly contributes to escalating operational costs. Manufacturers face increased expenses due to sourcing components from alternative, often more expensive, channels, or holding larger, costly buffer inventories to mitigate risks. According to IPC's September 2024 report, 43% of electronics manufacturers reported increased material costs, underscoring the direct financial burden. These elevated costs can translate into higher pricing for SoMs, potentially reducing their competitive appeal and slowing adoption across industrial automation, IoT, and edge computing sectors. The uncertainty also complicates long-term planning for product development and market expansion for companies reliant on SoM solutions.

Key Market Trends

Enhanced 5G Communication Module Integration is a significant trend transforming the Global System on Module (SoM) Market by delivering capabilities essential for advanced connected applications. The integration of 5G modules into SoMs enables unprecedented data transfer speeds, reduced latency, and enhanced reliability, which are crucial for real-time processing and mission-critical systems in areas like industrial automation and autonomous vehicles. This technological advancement supports the proliferation of devices requiring high-bandwidth, consistent connectivity. According to the Global mobile Suppliers Association (GSA), in June 2025, there were 2,437 announced 5G devices with claimed standalone (SA) support, representing a 27.9 percent increase from June 2024. This robust growth underscores the expanding ecosystem and readiness for standalone 5G services, providing a foundation for SoMs to facilitate next-generation applications. For instance, Qualcomm Technologies, in November 2024, outlined its IoT strategy which includes specialized enterprise-class processors designed to provide AI capabilities alongside 5G and other wireless connections, even in extreme environments.

The emphasis on Ultra-Low Power Consumption in SoM Designs represents another critical trend, addressing the growing demand for energy-efficient solutions in diverse embedded applications. This focus is particularly vital for battery-powered devices and remote deployments where prolonged operational life and minimal energy expenditure are paramount. Achieving ultra-low power consumption involves innovative hardware architectures and sophisticated power management techniques, extending device longevity and reducing the total cost of ownership. The escalating importance of power optimization is reflected in new product developments across the semiconductor industry. In February 2024, NXP Semiconductors introduced new lines of low-cost and low-power microcontroller units (MCUs) specifically designed for intelligent edge applications in industrial and industrial IoT gadgetry, emphasizing high I/O utilization and power efficiency. Further demonstrating this trend, NXP Semiconductors launched the MCX L14x and MCX L25x in January 2025, the first families in their ultra-low-power L Series, featuring a dual-core architecture and an independent ultra-low-power sense domain tailored for challenging battery-limited applications, such as sensors for industrial monitoring and building management.

Segmental Insights

The "Medical" segment is currently the fastest-growing application in the Global System on Module (SoM) Market, driven by the increasing adoption of embedded devices and advanced technologies in healthcare. This rapid expansion stems from the pervasive need for compact, integrated computing solutions in medical imaging, patient monitoring systems, and diagnostic equipment. SoMs facilitate efficient data processing, real-time monitoring, and enhanced connectivity crucial for digital health and telemedicine advancements. The demand for miniaturized and highly integrated systems, coupled with the rise of AI-driven applications and remote diagnostics, further propels the segment's growth, enabling the development of intelligent, energy-efficient medical devices.

Regional Insights

North America emerges as a leading region within the Global System on Module (SoM) Market, driven by a robust ecosystem of major technology and semiconductor companies. This dominance is significantly fueled by substantial investments and rapid advancements in key technologies such as the Internet of Things, artificial intelligence, and edge computing. These factors collectively generate high demand for sophisticated embedded computing solutions across diverse critical sectors including healthcare, automotive, aerospace, and industrial automation. Furthermore, government initiatives promoting digital transformation and smart infrastructure development contribute to a favorable environment for advanced SoM adoption.

Recent Developments

• In March 2025, Thundercomm unveiled its new TurboX C6690 System-on-Module at Embedded World. The ultra-compact module was built on the Qualcomm Dragonwing QCS6690 4nm-process chipset platform and was engineered for industrial handheld devices, industrial tablets, and edge computing solutions. It delivered 6 TOPS of AI performance, making it suitable for on-device AI applications. The TurboX C6690 SoM featured an ultra-compact design, flexible customization options, and robust video codec capabilities, aiming to simplify development cycles and reduce costs for customers.

• In August 2024, Toradex introduced the Aquila iMX95 System on Module, marking the second addition to its Aquila family of SoMs. This module was based on the NXP i.MX 95 System-on-Chip, offering enhanced processing power through its six Arm Cortex-A55 cores and LPDDR5 memory. The Aquila iMX95 featured high-speed networking capabilities, including a 10 Gigabit Ethernet interface, and supported multiple camera inputs for advanced image processing applications. It was also designed for compatibility with Torizon, the company's industrial Linux platform, to facilitate development and maintenance.

• In April 2024, NXP Semiconductors and ithinx announced a collaboration aimed at accelerating IoT gateway development. The partnership resulted in the iXpro platform, which included a System on Module and a corresponding gateway. This platform was built upon NXP's i.MX 93 application processor and incorporated NXP's IW612 tri-radio chip to provide comprehensive wireless connectivity. The initiative sought to streamline the creation of IoT solutions, offering a more cost-effective and efficient approach for various industrial and IoT applications.

• In March 2024, Kontron expanded its System on Module (SoM) product portfolio by introducing the OSM-S i.MX93. This new module focused on secure edge computing and machine learning, featuring a dual-core Arm Cortex-A55 processor and a real-time coprocessor operating at 250MHz. It offered up to 2GB of LPDDR4 RAM and 512GB of eMMC storage. The SoM integrated an EdgeLock Secure Enclave to bolster security in Internet of Things (IoT) applications and was designed to support time-critical operations, making it suitable for industrial automation and gateway solutions.

Key Market Players

• Advantech Co., Ltd.
• Connect Tech Inc.
• AAEON Technology Inc.
• Avnet, Inc.
• EMAC Inc.
• Avalue Technology Inc.
• Axiomtek Co., Ltd.
• Eurotech S.p.A.
• Emerson Electric Co.
• SECO S.p.A.

Report Scope:

In this report, the Global System on Module (SoM) Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• System on Module (SoM) Market, By Type:

o   ARM Architecture

o   X86 Architecture

o   Power Architecture

• System on Module (SoM) Market, By Standard:

o   COM Express

o   SMARC

o   Qseven

o   ETX/XTX

o   COM-HPC

o   Others

• System on Module (SoM) Market, By Application:

o   IndustrialAutomation

o   Medical

o   Entertainment

o   Transportation

o   Test & Measurement

o   Others

• System on Module (SoM) Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global System on Module (SoM) Market.

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Company Information

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