Global System On Module Market Growth, Share, Size, Trends and Forecast (2025 - 2031)
By Product ;
Test & Measurement, Medical, Industrial Automation, Transportation and Entertainment.By Application ;
x86, ARM and Power.By End User;
Chemical & Petrochemical, Oil & Gas, Energy & Power, and Automotive.By Geography;
North America, Europe, Asia Pacific, Middle East & Africa and Latin America - Report Timeline (2021 - 2031).Introduction
Global System On Module Market (USD Million), 2021 - 2031
In the year 2024, the Global System On Module Market was valued at USD 2,574.02 million. The size of this market is expected to increase to USD 4,781.47 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of x.x%
The global System on Module (SoM) market is witnessing robust growth, driven by the escalating demand for modular and scalable embedded systems across various industries. A System on Module is a compact, ready-to-use computing solution that integrates all essential components, including processors, memory, and input/output interfaces, onto a single module. This modular approach offers several advantages, such as reduced development time, lower costs, and increased flexibility, making SoM an attractive option for applications in industrial automation, healthcare, transportation, and consumer electronics.
Technological advancements are playing a pivotal role in the expansion of the SoM market. The development of more powerful and energy-efficient processors, coupled with advancements in wireless connectivity and miniaturization, has enhanced the capabilities of SoM solutions. These advancements are crucial for supporting emerging technologies like IoT, AI, and edge computing, which require efficient and reliable embedded systems. As industries continue to embrace digital transformation, the demand for versatile and high-performance SoM solutions is expected to rise significantly.
Geographically, the SoM market is growing across various regions, with North America, Europe, and Asia Pacific leading the way. North America benefits from a strong technological base and significant investments in research and development, particularly in sectors like aerospace, defense, and healthcare. Europe is also a major player, driven by the automotive and industrial automation sectors. Meanwhile, Asia Pacific is experiencing rapid growth due to the presence of major electronics manufacturers and increasing adoption of advanced technologies in countries like China, Japan, and South Korea. As a result, the global SoM market is poised for sustained growth, supported by technological innovation and expanding applications across diverse industries.
Global System On Module Market Recent Developments
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In September 2021, Toradex introduced a low-power system-on-module with enhanced security features for industrial automation.
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In March 2023, NVIDIA launched a system-on-module platform for AI-driven edge computing solutions.
Segment Analysis
The global System on Module (SoM) market is expected to experience significant growth from 2024 to 2030, driven by increasing demand for modular and scalable embedded systems across various industries. The market can be segmented by product into Test & Measurement, Medical, Industrial Automation, Transportation, and Entertainment. Each segment caters to specific needs, with SoM solutions offering the flexibility and performance required to meet diverse application requirements. For instance, in the medical field, SoM solutions enable the development of advanced diagnostic equipment, while in industrial automation, they support the creation of robust and reliable control systems.
By application, the SoM market is segmented into x86, ARM, and Power architectures. The x86 architecture, known for its compatibility and performance, is widely used in industrial and commercial applications. ARM architecture, celebrated for its power efficiency and versatility, is predominant in mobile and IoT applications. Power architecture, though less common, is valued in high-performance computing and telecommunications. The choice of architecture often depends on the specific requirements of the application, such as processing power, energy efficiency, and scalability, influencing the adoption rates across various sectors.
The System on Module (SoM) market has seen significant growth across various industries due to the rising demand for compact, high-performance embedded systems. One of the key sectors driving this market is the chemical and petrochemical industry, where automation and process optimization are crucial. SoMs play a vital role in monitoring and controlling chemical processing plants by providing real-time data acquisition, precise control mechanisms, and predictive maintenance capabilities. With increasing regulatory requirements for safety and efficiency, the adoption of SoMs in this sector is expected to continue rising.In the oil and gas industry, SoMs are widely used for exploration, drilling, and pipeline monitoring applications. Given the harsh and remote operating environments, these modules enable reliable data collection, asset tracking, and automation in upstream, midstream, and downstream operations. The integration of IoT and AI-driven analytics has further enhanced the efficiency of SoM-based solutions, reducing downtime and operational risks in this sector.The energy and power sector has also emerged as a major contributor to the SoM market, driven by the growing focus on renewable energy and smart grid infrastructure. SoMs are extensively used in power generation, distribution, and energy management systems, helping optimize resource utilization and enhance grid stability. With the transition towards sustainable energy sources and increasing investments in smart energy solutions, the demand for SoMs is expected to witness substantial growth.The automotive industry is another prominent end-user of System on Module technology, particularly with the rise of electric vehicles (EVs), autonomous driving, and connected car solutions. SoMs are at the core of advanced driver-assistance systems (ADAS), infotainment systems, and vehicle-to-everything (V2X) communication. The shift towards software-defined vehicles and the need for high computing power in modern automobiles have further accelerated the adoption of SoMs in this industry, making it one of the fastest-growing segments in the market.
Geographically, the SoM market is segmented into North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. North America is expected to remain a significant contributor, driven by strong R&D activities and high adoption of advanced technologies in sectors like aerospace, defense, and healthcare. Europe, with its robust automotive and industrial automation sectors, is also a major player in the market. The Asia Pacific region is anticipated to witness the fastest growth, fueled by the presence of major electronics manufacturers, rapid industrialization, and increasing adoption of cutting-edge technologies in countries like China, Japan, and South Korea. Emerging markets in the Middle East, Africa, and Latin America are also showing potential, supported by growing investments in electronics manufacturing and infrastructure development. The comprehensive market analysis will provide insights into key trends, market share, and growth opportunities across these regions over the forecast period.
Global System On Module Segment Analysis
In this report, the Global System On Module Market has been segmented by Product , Application, End User, and Geography.
Global System On Module Market, Segmentation by Product
The Global System On Module Market has been segmented by Product into Test & Measurement, Medical, Industrial Automation, Transportation and Entertainment.
The global System on Module (SoM) market is poised for significant growth from 2024 to 2030, fueled by the rising demand for modular and scalable embedded systems across various industries. The market segmentation by product includes Test & Measurement, Medical, Industrial Automation, Transportation, and Entertainment, each addressing distinct industry needs. SoM solutions provide the flexibility and performance necessary to meet the unique requirements of these diverse applications. For example, in the medical field, SoM technology is essential for developing sophisticated diagnostic equipment that demands high precision and reliability. In industrial automation, SoM modules facilitate the creation of robust control systems that enhance operational efficiency and productivity.
Each product segment benefits from the unique advantages of SoM solutions, driving their adoption in specific applications. In transportation, SoM modules are critical for developing advanced driver-assistance systems (ADAS) and infotainment systems, while in the entertainment sector, they enable the creation of high-performance gaming consoles and multimedia devices. The ability of SoM solutions to integrate complex functionalities into compact, cost-effective modules makes them highly attractive across these varied applications. As industries continue to evolve and adopt more sophisticated technologies, the demand for versatile and high-performance SoM solutions is expected to surge, contributing to the overall market growth.
Global System On Module Market, Segmentation by Application
The Global System On Module Market has been segmented by Application into x86, ARM and Power.
By application, the System on Module (SoM) market is segmented into x86, ARM, and Power architectures, each catering to distinct industry needs and use cases. The x86 architecture is renowned for its compatibility and robust performance, making it a popular choice in industrial and commercial applications where reliability and processing power are paramount. This architecture is well-suited for applications such as industrial automation, where consistent and powerful computing capabilities are required to manage complex processes and ensure operational efficiency.
On the other hand, ARM architecture is celebrated for its power efficiency and versatility, making it the preferred choice for mobile and IoT applications. ARM-based SoM solutions are integral to the development of compact, energy-efficient devices, such as smartphones, tablets, and a wide range of IoT devices. Although less common, Power architecture holds significant value in high-performance computing and telecommunications due to its ability to handle intensive computational tasks and provide reliable performance in demanding environments. The selection of architecture is often guided by the specific requirements of the application, such as processing power, energy efficiency, and scalability, which in turn influence the adoption rates across various sectors, contributing to the diverse landscape of the SoM market.
Global System On Module Market, Segmentation by End User
The Global System On Module Market has been segmented by End User into Chemical & Petrochemical, Oil & Gas, Energy & Power, and Automotive.
The System on Module (SoM) market has seen significant growth across various industries due to the rising demand for compact, high-performance embedded systems. One of the key sectors driving this market is the chemical and petrochemical industry, where automation and process optimization are crucial. SoMs play a vital role in monitoring and controlling chemical processing plants by providing real-time data acquisition, precise control mechanisms, and predictive maintenance capabilities. With increasing regulatory requirements for safety and efficiency, the adoption of SoMs in this sector is expected to continue rising.
In the oil and gas industry, SoMs are widely used for exploration, drilling, and pipeline monitoring applications. Given the harsh and remote operating environments, these modules enable reliable data collection, asset tracking, and automation in upstream, midstream, and downstream operations. The integration of IoT and AI-driven analytics has further enhanced the efficiency of SoM-based solutions, reducing downtime and operational risks in this sector.
The energy and power sector has also emerged as a major contributor to the SoM market, driven by the growing focus on renewable energy and smart grid infrastructure. SoMs are extensively used in power generation, distribution, and energy management systems, helping optimize resource utilization and enhance grid stability. With the transition towards sustainable energy sources and increasing investments in smart energy solutions, the demand for SoMs is expected to witness substantial growth.
The automotive industry is another prominent end-user of System on Module technology, particularly with the rise of electric vehicles (EVs), autonomous driving, and connected car solutions. SoMs are at the core of advanced driver-assistance systems (ADAS), infotainment systems, and vehicle-to-everything (V2X) communication. The shift towards software-defined vehicles and the need for high computing power in modern automobiles have further accelerated the adoption of SoMs in this industry, making it one of the fastest-growing segments in the market.
Global System On Module Market, Segmentation by Geography
In this report, the Global System On Module Market has been segmented by Geography into five regions; North America, Europe, Asia Pacific, Middle East and Africa and Latin America.
Global System On Module Market Share (%), by Geographical Region, 2024
Geographically, the System on Module (SoM) market is poised for dynamic growth across regions, driven by varying factors and industrial landscapes. North America is expected to maintain its position as a significant contributor to the global SoM market, supported by robust research and development activities and the widespread adoption of advanced technologies in sectors such as aerospace, defense, and healthcare. The region's focus on innovation and technological advancement enhances the demand for SoM solutions, particularly in applications requiring high reliability and performance.
Europe emerges as another key player in the SoM market, leveraging its strong automotive and industrial automation sectors. The region's emphasis on manufacturing excellence and industrial efficiency drives the adoption of SoM solutions in critical applications ranging from automotive control systems to advanced factory automation. Meanwhile, the Asia Pacific region is poised to experience the fastest growth, propelled by the presence of major electronics manufacturers and rapid industrialization in countries like China, Japan, and South Korea. The increasing adoption of cutting-edge technologies and the burgeoning demand for smart devices and IoT solutions contribute to the expansion of the SoM market in this region. Emerging markets in the Middle East, Africa, and Latin America are also showing promise, bolstered by investments in electronics manufacturing and infrastructure development, which create new opportunities for SoM deployment across various industrial sectors.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global System On Module Market. These factors include; Market Drivers, Restraints and Opportunities
Drivers, Restraints and Opportunity
Drivers
- Rising Demand for IoT and Connected Devices
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Advancements in Embedded Computing Technologies:Continuous advancements in embedded computing technologies, such as more powerful processors, increased memory capacity, and enhanced connectivity options, fuel the growth of the SoM market. These advancements enable SoM solutions to meet evolving application requirements in terms of performance, energy efficiency, and scalability, thereby expanding their use in diverse industrial and commercial applications.
The proliferation of Internet of Things (IoT) devices across various industries is a significant driver for the SoM market. SoM solutions provide the compactness, processing power, and connectivity necessary to support IoT applications, driving their adoption in smart homes, industrial automation, healthcare monitoring, and more.
Restraints
- Complexity and Customization Challenges
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Security Concerns:With the increasing connectivity of devices powered by SoM solutions, cybersecurity concerns become more pronounced. Ensuring robust security measures to protect sensitive data and prevent unauthorized access is crucial but can be challenging due to the diverse nature of applications and the constant evolution of cyber threats. Addressing these security concerns effectively is essential for gaining trust and accelerating adoption across industries.
One of the primary challenges in the SoM market is the complexity involved in customizing SoM solutions to meet specific application requirements. Different industries and applications have unique needs, which often require bespoke configurations and software development. This customization process can be time-consuming and costly, posing a barrier to widespread adoption, especially for smaller companies and startups.
Opportunities
- Expansion of Edge Computing
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Emerging Applications in AI and Machine Learning:The integration of artificial intelligence (AI) and machine learning (ML) into various applications, from autonomous vehicles to predictive maintenance systems, creates new opportunities for SoM solutions. SoMs with AI accelerators and specialized processing units can support the computational demands of AI algorithms, enabling intelligent decision-making and automation in diverse environments. Leveraging SoM capabilities in AI and ML applications opens up new markets and use cases, contributing to market growth and innovation.
The growing trend towards edge computing, where data processing occurs closer to the data source rather than in centralized data centers, presents significant opportunities for SoM solutions. Edge devices require compact, high-performance computing solutions like SoMs to process data efficiently and quickly respond to real-time demands, driving their adoption in edge computing applications across industries.
Competitive Landscape Analysis
Key players in Global System On Module Market include
- Advantech
- Digi International,
- SECO
- Kontron
- include Congatec.
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Product
- Market Snapshot, By Application
- Market Snapshot, By End User
- Market Snapshot, By Region
- Global System On Module Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
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Rising Demand for IoT and Connected Devices
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Advancements in Embedded Computing Technologies
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- Restraints
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Complexity and Customization Challenges
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Security Concerns
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- Opportunities
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Expansion of Edge Computing
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Emerging Applications in AI and Machine Learning
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- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- Global System On Module Market , By Product , 2021 - 2031 (USD Million)
- Test & Measurement
- Medical
- Industrial Automation
- Transportation
- Entertainment
- Global System On Module Market , By Application , 2021 - 2031 (USD Million)
- x86
- ARM
- Power
- Global System On Module Market , By End User , 2021 - 2031 (USD Million)
- Chemical & Petrochemical
- Oil & Gas
- Energy & Power
- Automotive.
- Global System On Module Market , By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- Global System On Module Market , By Product , 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- Advantech
- Digi International
- SECO
- Kontron
- include Congatec
- Company Profiles
- Analyst Views
- Future Outlook of the Market