System on Module Market Size, Share, and Industry Analysis, By Product Type (ARM Architecture, x86 Architecture, and Power Architecture), By Standard (QSEVEN, SMARC, COM Express, COM-HPC, and Others), and By Application (Industrial Automation, Healthcare, Automotive, Consumer Electronics, Test & Measurements, Entertainment, and Others), and Regional Forecast till 2032

The global System on Module (SoM) market is experiencing rapid growth due to the rising demand for compact, energy-efficient, and cost-effective solutions. SoM is a board-based, self-contained computing platform that integrates critical components such as processor, memory, power management, and other peripherals into a single modular. Instead of designing the core system architecture from scratch, developers use SoM to integrate it into their specific applications. The increasing demand for IoT devices, AI-driven applications, and embedded systems across various industries such as healthcare, automotive, industrial automation, and telecommunication further fuels the need for advanced SoMs.

• In April 2024, Digi Internation introduced the Digi ConnectCore MP25 System on Module (SoM) at Embedded World 2024. This SoM, powered by the STMicroelectronics STM32MP35 processor, is tailored for advanced computer vision applications across industries such as industrial, medical, and transportation.  

Impact of AI on the System on Module Market

Integrating AI with system on modules is poised to revolutionize the market due to the demand for high-performance, low-latency computing solutions capable of handling complex algorithms and data processing. AI-optimized processors are being integrated into edge computing devices, enabling real-time data processing at the edge, which minimizes latency and reduces the need for cloud-based resources. Integrating AI accelerators and neural network processors onto SoMs has enabled the deployment of intelligent devices for various applications such as automotive, smart home systems, and healthcare. Moreover, the need for efficient power management in AI applications encourages SoM manufacturers to focus on creating modules that balance performance with energy efficiency, making AI-enabled SoMs essential in the evolving landscape of connected devices and intelligent systems.

• In July 2024, iWave launched the iW-RainboW-G58M, a system on module powered by Intel Agilex 5, the first Field Programmable Gate Array (FPGA) with AI capabilities. This SoM targets high-performance applications in medical, robotics, and industrial sectors, offering AI/ML hardware support in a compact form factor.

System on Module Market Driver

Increasing Demand for Portable and Miniaturized Devices Drives the Market

The demand for smaller and more portable electronic devices stimulates the adoption of SoMs. The proliferation of IoT devices across industries requires embedded systems that are scalable and energy-efficient. SoMs are energy efficient and offer a balance of performance, making them ideal for handheld and portable devices. The ability to write application software directly on the same hardware used in the final product streamlines development processes. As demand for portable and wireless devices continues to rise, the SoM market is projected to experience significant growth in the coming years.

• According to industry specialists, the International Federation of Robotics (IFR) estimates that 3 million industrial robots were in use globally in 2021.

System on Module Market Restraint

High Initial Costs & Design Complexity Cause a Barrier to Market Growth

Although SoMs can accelerate product development and reduce long-term costs, the upfront investment for custom SoM design in specialized applications can be prohibitive for small and medium enterprises (SMEs). With continuous advancements in technology, such as processor architectures, memory technologies, and communication interfaces, SoMs may need to be updated quickly, necessitating frequent upgrades or redesigns to stay competitive. This short lifecycle increases the cost and complexity of maintaining a product-based system on modules. Moreover, compatibility issues with existing systems may complicate SoM adoption due to integration hurdles, requiring additional customization and development time, further raising costs.

System on Module Market Opportunity

Deployment of 5G Networks and Developments in Emerging Technologies Present Significant Opportunities

As 5G deployment accelerates globally, SoM plays a key role in enabling ultra-fast data transfer and communication in applications such as autonomous vehicles, smart cities, and industrial automation. The expansion of AI, machine learning, and IoT across industries is driving demand for SoMs in edge computing, where processing power and real-time decision-making are critical. Additionally, the increase of smart agriculture, wearable technology, and smart home devices offers immense potential for SoM adoption, further presenting the opportunity for market growth.   

• In May 2024, NetBurner launched the SOMRT1061, a compact and flexible SoM designed for industrial IoT applications. It's NXP i.MXRT1061 ARM cortex M7 processor offers enhanced connectivity options such as dual Ethernet, USB, and UARTs, making it suitable for a processor, network sub-processor, or encrypted Ethernet server.

Segmentation

Key Insights

The report covers the following key insights:

• Micro Macro Economic Indicators
• Drivers, Restraints, Trends, and Opportunities
• Business Strategies Adopted by the Key Players
• Impact of AI on the Global System on Module Market
• Consolidated SWOT Analysis of Key Players

Analysis by Product Type

By product type, the market is divided into ARM architecture, x86 architecture, and power architecture.

The ARM Architecture SoMs are leading the market due to the growing need for energy efficiency, scalability, cost-effectiveness, and the rise in IoT devices. ARM (Advanced RISC Machine) architecture is a Reduced Instruction Set Computing (RISC) architecture known for its energy efficiency and performance. It is ideal for mobile and embedded applications such as IoT devices, industrial automation, wearables, and smart electronic consumers. However, x86 architecture is expected to grow at the highest CAGR in the forecasted period, driven by the rising demand for high-performance SoMs in applications such as AI, data centers, and medical imaging. x86 architecture refers to the CISC (Complex Instruction Set Computing) architecture developed by Intel and AMD. It offers more complex and powerful processing capabilities than RISC. These SoMs are used in high-performance computing, medical devices, robotics, and industrial control systems that require robust processing power.

• In March 2024, MYIR launched a new MYC-LT527 SoM featuring the Allwinner T527 octa-core processor. This SoM is designed for AI applications, offering high performance with its Octa-core ARM Cortex-A55 CPU and G57 GPU, along with 2TOPs Neural Processing Units (NPUs). It is suitable for various embedded devices such as industrial robots, medical equipment, and AI boxes.

Analysis by Standard

By standard, the market is divided into QSEVEN, SMARC, COM Express, COM-HPC, and others.

QSEVEN standard currently leads the market due to its energy efficiency, compact size, and widespread adoption. It is a low-powered, small form factor standard (70mm x 70mm) designed for embedded systems. It is optimized for mobile and battery-operated devices, especially in IoT devices, medical equipment, and industry automation. It supports a variety of processors, including x86 and ARM-based systems.

Moreover, the COM Express standard is expected to experience the highest CAGR in the forecast period, driven by its wide adoption across industries that require high performance and scalability. It is widely used due to its flexibility in offering multiple sizes and performance ranges. It supports powerful x86 processors and high-speed I/O connectivity and is used in performance-intensive applications such as healthcare, military systems, telecommunication, industrial automation, and networking.

• In June 2024, DFI launched the COM Express Mini Type 10 module ASL9A2, which features an Intel Atom processor. This module is optimized for high-performance, energy-efficient, and rugged edge applications, making it ideal for 24/7 operations. It supports a variety of IoT solutions, ensuring reliability in demanding environments.

Analysis by Application

By application, the market is divided into industrial automation, healthcare, automotive, consumer electronics, test & measurements, entertainment, and others.

Industrial automation holds the largest share of the market due to the increasing adoption of smart manufacturing, robotics, AI, and Industry 4.0 technologies. The need for real-time data processing, system scalability, and energy efficiency makes SoMs crucial in automating manufacturing processes. They enable advanced control systems, optimize operational efficiency, and improve safety in industrial environments. SoMs are essential for supporting the integration of AI, IoT, and machine learning within manufacturing as industries adopt complete automation. The automotive segment is expected to grow at the highest CAGR during the forecast period, driven by the rapid development of autonomous vehicles, electric vehicles (EV), and Advanced Driver Assistance Systems (ADAS) technologies. SoMs enable real-time sensor processing, AI integration, and decision-making necessary for autonomous systems.

• In May 2024, Cherry Embedded Solutions launched the Tiger SOM-RK3588-Q7, a high-performance SoM designed for advanced robotics and smart systems. The module excels in real-time object detection, scene recognition, and secure boot mechanisms. It is suited for applications, including autonomous mobile robots, video surveillance, and smart displays, offering deep learning support and high-resolution camera integration.

Regional Analysis

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In terms of geography, the global market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America holds the leading position in the market, driven by technological advancements and infrastructure, advanced research & development (R&D), and early adoption of IoT, AI, and industrial automation across industries such as healthcare, automotive, and aerospace. The significant investments in autonomous vehicles, robotics, and edge computing fuel the growth. Key industries in the region are increasingly integrating SoMs into their product development to accelerate innovation and improve efficiency.

• According to industrial experts, North America registered a USD 981.1 million market size in 2022.

 Asia Pacific is projected to experience the highest CAGR during the forecast period due to rapid industrialization, the expansion of the consumer electronics market, and emerging economies. There is a regional demand for smart devices, IoT solutions, and automation in industries including automotive and telecommunication. Additionally, government initiatives promoting smart city projects and 5G deployments are accelerating the adoption of SoMs.

• In February 2024, iWave announced the initiation of the Harmonized Field Programmable Gate Array (FPGA) Module Working Group on developing standardized FPGA-based SoM. By standardizing the interface and functionality, the group seeks to enhance interoperability, reduce development time, and lower costs for FPGA-based solutions.

Key Players Covered

The key players in the market include,

• Advantech Co. Ltd. (Taiwan)
• Kontron AG (Germany)
• AAEON Technology Inc. (Taiwan)
• Avalue Technology Inc. (Taiwan)
• Intel Corporation (U.S.)
• Digi International Inc. (U.S.)
• Connect Tech Inc. (Canada)
• EMAC Inc. (U.S.)
• iWave Systems Technologies Pvt. Ltd. (India)
• Eurotech S.p.A. (Italy)
• National Instruments Corporation (U.S.)
• Microchip Technology Inc. (U.S.)
• VIA Technologies Inc. (Taiwan)
• Unex Technology (Taiwan)
• Variscite (Isreal)
• SECO S.p.A. (Italy)
• PHYTEC Embedded Pvt. Ltd. (India)

Key Industry Developments

• In June 2024, SECO teamed up with MediaTek to develop AI-powered SMARC modules for IoT applications. These modules offer AI processing capabilities, high-efficiency performance, and strong graphical output, making them ideal for edge AI tasks. Customized configurations enable real-time processing and support wireless connectivity, catering to various environments. 
• In March 2024, Direct Insight announced a partnership with MicroSys Electronics to distribute its System on Module (SoM) and Single Board Computer (SBC) technology in the UK and Ireland. The collaboration will focus on providing customers with MicroSys’s miriac MPX modules, which are based on NXP’s S32G and Layerscape processors, offering benefits, such as faster time-to-market and reduced non-recurring engineering (NRE) costs.