|
Forecast Period
|
2025-2029
|
|
Market Size (2023)
|
USD 1.70 Billion
|
|
CAGR (2024-2029)
|
8.25 %
|
|
Fastest Growing
Segment
|
Qseven segment
|
|
Largest Market
|
North America
|
Market Overview
Global System on Module (SoM) Market was
valued at USD 1.70 Billion in 2023 and is anticipated to project robust growth
in the forecast period with a CAGR of 8.25
% through 2029. Growing adoption of IoT based
technologies worldwide and surge in the demand of embedded systems due to their
computing performance and ultra-low power consumption ability are major driving
factors behind the growth of market. Rising requirement of Software Defined
Radio (SDR), increasing development and production of self-driving cars in
regions like North America and Europe, high adoption of embedded computers for
industrial applications and growing demand of multiple embedded wireless
solutions like Bluetooth are expected to improve the growth market during
forecast period. System on Module offers some major benefits such as reduced
cost of the base board or the main PCB, design-reuse feature and stable and
reliable platform for developers to build an embedded system, which are
ultimately propelling the growth of market.
However, programming code
error on a module and rising cost of the module are major restraining factor
that could hamper the growth of market. Also complexity of x86-based system on
modules could obstruct the growth of market.
Key Market Drivers
Increasing Miniaturization of The System
On Module
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.
Reliance On IOT Technologies
The reliance on IoT technologies has
surged across industry verticals including home appliances, medical, and
transportation. The use of SoM modules is therefore likely to rise to
streamline hardware specifications and allow developers to design precise and
connected edge devices for next-gen IoT applications. Compared to single-board
computers, SOM systems can also offer more advanced SoC an memory and low error
risks, further contributing to product demand. Additionally, the price of these
solutions is increasing, making them relatively more, expensive than ARM
processors, creating roadblocks to system on module market expansion to a
certain extent. Despite these challenges, the strong focus on the development
of compatible processors for 5G, IoT, and other emerging tech applications will
create growth opportunities for SoM developers over the estimated timeline.
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Key Market Challenges
The SoM market is witnessing significant
growth, primarily driven by the proliferation of IoT applications and the
increasing demand for high-performance, power-efficient embedded systems. As
businesses and individuals seek to capitalize on the benefits of connected
devices, SoMs offer an attractive solution by simplifying the development
process and accelerating time-to-market. This growing demand has led to an
influx of suppliers and manufacturers, all vying for a piece of the SoM pie. The
primary challenge in the SoM market can be succinctly summed up as "market
fragmentation." To understand this challenge, we need to examine the
various dimensions of fragmentation within the SoM ecosystem:
Technical Diversity
One of the key aspects of fragmentation
in the SoM market is the technical diversity among different SoM solutions.
SoMs come in various form factors, processor architectures, memory
configurations, and I/O options. This diversity is, on one hand, a strength, as
it enables developers to select the most appropriate module for their specific
application. However, it also leads to complexity when it comes to
standardization and interoperability.
For instance, one SoM may use an
ARM-based processor, while another employs an x86 architecture. This
discrepancy in technical specifications can result in compatibility issues,
requiring developers to make significant adjustments in their designs. It also
complicates the task of developing software that can run seamlessly across
different SoMs, which is a vital concern in the embedded systems world. Another
aspect of fragmentation is the variety of operating systems (OS) that can run
on SoMs. These modules support different OS options, including Linux, Android,
Windows Embedded, and custom real-time operating systems. This diversity is
both an advantage and a challenge. It allows developers to choose the OS that
best suits their application requirements, but it also introduces complexities
when it comes to software development and support.
Developers need to ensure that their
software is compatible with the chosen OS and that the OS itself supports the
hardware and drivers of the selected SoM. This can lead to compatibility
issues, additional development effort, and increased time-to-market for
projects.
Vendor-specific Ecosystems:
Each SoM manufacturer often creates its
ecosystem around its products. This includes proprietary tools, development
environments, and support services. While this strategy can provide a seamless
experience for customers who stick with a single vendor, it can create
challenges when users want to switch or mix SoMs from different manufacturers.
The existence of vendor-specific
ecosystems can lock customers into a particular supplier, limiting their
flexibility and potentially resulting in higher costs in the long run. It also
complicates the task of comparing different SoM solutions and assessing their
suitability for specific projects. In the world of embedded systems, longevity
and lifecycle management are critical considerations. Many applications require
stable, long-term support for their hardware and software components. However,
the fragmented nature of the SoM market can make it challenging for customers
to ensure the long-term availability of their chosen modules.
Customers may find that the module they
selected a few years ago is no longer in production, and the vendor's support
has dwindled. This can necessitate costly redesigns and migrations, impacting
the overall cost and timeline of projects. Longevity and lifecycle management
issues are exacerbated by the rapid pace of technological advancements, as new
SoMs with improved features are continually introduced. The availability of
comprehensive support and documentation for SoMs is another dimension of the
challenge. Different vendors provide varying levels of support, from
well-documented resources and responsive technical assistance to minimal
support and outdated documentation. This variation in support quality can
greatly influence the ease of development, troubleshooting, and long-term
maintenance of embedded systems.
Implications of Market Fragmentation
Understanding the challenge of market
fragmentation in the SoM industry is essential because it has significant
implications for various stakeholders, including developers, businesses, and
SoM manufacturers:
Market fragmentation adds complexity to
the development process. Developers need to carefully evaluate the technical
specifications of different SoMs to select the most suitable one for their
project. They may also need to invest additional effort in software development
and debugging due to the diversity of technical configurations and operating
systems.
Cost and Time-to-Market
Market fragmentation can lead to
increased costs and longer time-to-market for embedded systems projects.
Selecting, configuring, and adapting SoMs to fit specific requirements can be a
time-consuming process. Compatibility issues may arise, necessitating
additional development work and testing.
Risk and Lock-in
Customers may face the risk of vendor
lock-in when they invest in a particular SoM ecosystem. Shifting to a different
vendor can be challenging, as it often involves substantial rework and
compatibility challenges. This risk can limit the flexibility of businesses and
potentially result in higher costs in the long run. Ensuring the long-term
sustainability of embedded systems is a significant concern. The rapid pace of
innovation and product obsolescence in the SoM market means that customers need
to carefully plan for the lifecycle of their products. This includes assessing
the availability of replacement modules and ensuring that the software remains
compatible and secure over time. For SoM manufacturers, market fragmentation
presents competitive challenges. Differentiating their products in a crowded
field can be difficult, and they need to strike a balance between offering
diverse options and maintaining compatibility with industry standards.
Addressing the Challenge of Market
Fragmentation
Addressing the challenge of market
fragmentation in the SoM market requires collaborative efforts from various
stakeholders, including manufacturers, industry organizations, and developers.
Here are some strategies to mitigate the effects of fragmentation:
Standardization efforts are essential to
create a more unified and interoperable SoM ecosystem. Industry organizations
and standards bodies can work to define common specifications for form factors,
interfaces, and software interfaces. For instance, initiatives like COM Express
and SMARC aim to standardize some aspects of SoM design. Open source software
and hardware initiatives can play a crucial role in addressing the challenge of
fragmentation. Open source projects, like Yocto Project and Raspberry Pi, provide
standardized development tools and resources that are compatible with a wide
range.
Key Market Trends
One of the most prominent trends in the
SoM market is the increased demand for Artificial Intelligence (AI) and edge
computing capabilities. As the adoption of IoT devices continues to grow, there
is a need for more processing power and intelligence at the edge of the
network, closer to where data is generated. SoMs are well-suited for this role,
as they can integrate powerful AI-capable processors and GPUs, making them
ideal for tasks like image and speech recognition, predictive maintenance, and
real-time data analysis.
The proliferation of edge computing use
cases in various industries, such as healthcare, manufacturing, and autonomous
vehicles, is driving the demand for SoMs with AI and machine learning
capabilities. SoM manufacturers are responding to this trend by developing
modules that incorporate AI-specific hardware, like Neural Processing Units
(NPUs) or GPUs, and by providing software support for AI frameworks. This trend
is expected to continue as the IoT landscape evolves, enabling more intelligent
and autonomous systems.
Increased Connectivity and 5G
Integration
Connectivity is a critical aspect of IoT
applications, and SoMs are at the forefront of enabling seamless connectivity.
As 5G networks become more widespread, there is a growing need for SoMs that
can support high-speed, low-latency communication. These modules are essential
for applications like industrial automation, smart cities, and autonomous
vehicles, where real-time data transfer is crucial.
SoM manufacturers are responding to this
trend by integrating 5G modems and supporting a variety of wireless
communication protocols, such as Wi-Fi 6 and Bluetooth Low Energy. This enables
IoT devices to stay connected and transmit data efficiently. The integration of
5G capabilities in SoMs is expected to drive the development of innovative
applications and services that rely on high-speed, low-latency connectivity.
Enhanced Security Features
With the increasing number of IoT
devices and their growing significance in critical applications, security has
become a paramount concern. SoMs are being equipped with enhanced security
features to protect data and ensure the integrity of connected systems.
These security features include
hardware-based encryption, secure boot mechanisms, and support for trusted
execution environments (TEEs). Manufacturers are also developing SoMs with
features like secure element integration, which provides a tamper-resistant
hardware module for storing cryptographic keys and enabling secure
communication.
As security threats and vulnerabilities
continue to evolve, SoM manufacturers are working closely with industry
standards organizations to ensure that their modules comply with the latest
security standards. These enhanced security features are vital in safeguarding
IoT systems from cyberattacks and unauthorized access.
Energy Efficiency and Low-Power SoMs
Energy efficiency remains a significant
trend in the SoM market, driven by the need to extend the battery life of IoT
devices and reduce power consumption in embedded systems. Low-power SoMs are
becoming increasingly popular, particularly for applications like wearable
devices, remote sensors, and battery-operated devices.
Manufacturers are developing SoMs based
on energy-efficient processors, such as ARM Cortex-M and RISC-V
Segmental Insights
Type Insights
The power architecture held
the leading segment growth over the forecasted period among the rest of types
of system on modules. Power architecture is an instruction set architecture
(ISA) implemented by a variety of processors from various vendors, including
Power7, IBM's latest server processor. It is designed to exploit parallelism at
the instruction, data, and thread-level.
Standard Insights
Qseven segment led the
overall market in the System on Module industry in 2023, and COM-HPC segment is
expected to grow significantly in terms of CAGR during the forecast period.
COM-HPC (Computer on Module – High Performance Computing) is an open standard
for a family of high-performance computer modules targeting the embedded
computer space. When it comes to aspects like long-term availability, prolonged
temperature operation, mechanical toughness, hardware, and firmware that can be
tailored to the application, and Module vendor assistance for product
developers, the embedded market differs from the commercial market.
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Regional Insights
North America accounted
for the largest share of revenue in 2023. 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 regionThe 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.
Recent Developments
- January 2022 Avalue Technology launched panel
kits series for multi-application of the display modules. The Kit can combine
the specification of motherboards and every kind of mechanical design.
- April 2022 Toradex and Mouser Electronics
signed an agreement to become official channel partners for global
distribution. Through this agreement, Mouser provides Toradex Colibri and
Apalis COMs based on NXP.
- May 2022 Kontron launched new SL i.MX6 UL a
single board SoM that combines high-performance NXP i.MX6 ultralight 1X Arm
microprocessor for efficient computing specific solution.
Key Market Players
- AAEON Technology
- Advantech Co Ltd
- Avnet Inc
- Avalue Technology
- Axiomtek Co Ltd
- ConnectTech Inc
|
By Type
|
By Standard
|
By Application
|
By Region
|
|
- ARM Architecture
- X86 Architecture
- Power Architecture
|
- COM Express
- SMARC
- Qseven
- ETX/XTX
- COM-HPC
- and Others
|
- Industrial Automation
- Medical
- Entertainment
- Transportation
- Test & Measurement
- Others
|
- North America
- Europe
- South America
- Middle East & Africa
- Asia Pacific
|
|
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:
·
Global System on Module (SoM) Market, By Type :
o ARM Architecture
o X86 Architecture
o
Power
Architecture
·
Global System on Module (SoM) Market, By Standard :
o COM Express
o SMARC
o Qseven
o ETX/XTX
o COM-HPC
o
and
Others
·
Global System on Module (SoM) Market, By Application
:
o Industrial Automation
o Medical
o Entertainment
o Transportation
o Test & Measurement
o Others
·
Global System on Module (SoM) Market, By Region:
o
North America
§ United
States
§ Canada
§ Mexico
o
Asia-Pacific
§ China
§ India
§ Japan
§ South
Korea
§ Indonesia
o
Europe
§ Germany
§ United
Kingdom
§ France
§ Russia
§ Spain
o
South America
§ Brazil
§ Argentina
o
Middle East & Africa
§ Saudi
Arabia
§ South
Africa
§ Egypt
§ UAE
§ Israel
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies presents in the Global System on Module (SoM) Market.
Available Customizations:
Global System on Module (SoM) Market report with the given market data,
TechSci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company Information
- Detailed analysis and profiling of additional market players (up to
five).
Global System on Module (SoM) Market is an upcoming report to be released
soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected]