Increase in 5G Investments to Boost Global System-on-Chip Market Growth, Technavio Says
The global system-on-chips (SoC) market will grow at a combined annual growth rate (CAGR) of more than 6 percent between 2019 and 2023, according to a new market research report from Technavio .
Several market dynamics are driving SOCs’ market trajectory. Robotics are increasingly being adopted in various process and discrete manufacturing industries including automotive, healthcare, electronics, and military and defense. SoCs are integrated into robots as they include embedded software and hardware, which can help reduce the time to market and the total cost of ownership.
SoCs provide network interfaces, operating system drivers, and machine learning frameworks, which are essential for robots. As SoCs are highly suitable to be integrated into robotics, the growing demand for robotics across numerous applications will fuel the growth of the SoCs market during the forecast period.
5G, the next generation of communication technology, is gaining immense popularity across the world. There have been numerous investments in 5G globally in recent times, which is creating high demand for 5G network infrastructure.
This is accelerating the development of electronic components and modules including 5G mmWave antenna modules, 5G base stations, and several 5G RF products. To capitalize on the growing investments in 5G, SoC vendors are introducing products that support 5G to enter a wide range of application segments. Thus, an increase in the investments in 5G will propel the adoption of SoCs during the forecast period.
“The SoCs market is witnessing an increase in the number of strategic partnerships and acquisitions among SoC manufacturers and other stakeholders including telecommunication network service providers, smartphone manufacturers, and semiconductor IP providers, Technavio analysts said. “Such partnerships will allow vendors to expand their product portfolio, improve their geographic presence, and expand their sales and distribution networks.”
Although semiconductor manufacturers mostly rely on IP providers for the development of high-performance SoCs, integrating acquired semiconductor IP blocks from third-party vendors into SoCs is challenging. The complexity of IP integration and the IP design increases the number of IP blocks used, which doubles the total cost of acquiring IPs and increases the production time cycle.
This will pose a high challenge to SoC designers when it comes to integrating an acquired IP core on a design IP base. However, companies are adopting exhaustive measures to tackle these challenges, which will positively impact market growth during the forecast period.
(For more information visit www.technavio.com).