The global System on Module (SoM) Market is set to witness significant expansion from 2025 to 2035, driven by the increasing demand for compact, energy-efficient, and high-performance embedded computing solutions.
SoMs integrate multiple components, including processors, memory, and communication interfaces, onto a single module, making them ideal for applications across industrial automation, IoT, automotive, healthcare, and consumer electronics sectors. The rise of edge computing, AI-powered devices, and Industry 4.0 trends are further propelling market growth.
The market is projected to surpass USD 5,890.4 Million by 2035, growing at a CAGR of 14.5% during the forecast period.
Key Market Metrics
| Metric | Value |
|---|---|
| Market Size in 2025 | USD 1,520.8 Million |
| Projected Market Size in 2035 | USD 5,890.4 Million |
| CAGR (2025 to 2035) | 14.5% |
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North America is home to a further member of the world's six leading Module markets as well as being the originator of many innovations in electronic system industries. The USA, in particular, offers a much more widespread demand environment for industries such as automotive (driverless vehicles), healthcare (medical devices), and industrial automation.
Even though focus is turned towards AI, machine learning and Internet of Things (IoT) deployments in all of these applications sectors, this only authenticates the use high-end embedded computing platforms. In addition to the push that comes from government policies to popularize digital transformation as part of infrastructure construction, all of these things are working together to expand the market in this region.
In Europe, the automotive sector is increasingly focusing on innovation in electric cars and autonomous driving in which market demand for high-performance embedded system-on -modules is strong. The increasing emphasis in Asia on future technologies such as 5G communications supports momentum at both ends of this geographic scale.
To date, the existence of both semiconductor and electronics industries, as well as the support of project-oriented policies such as those found in national and regional development programmes within Europe, are responsible for keeping markets moving forward.
The Asia Pacific region is expected to see the fastest growth in System on Module markets due to lately prospering clusters of electronics production, now mainly in China, Japan, South Korea and Taiwan. The increasingly widespread adoption of IoT devices, smart home applications and industrial automation solutions is contributing substantially to the growth of these markets in Asia Pacific.
Besides, the expanding application of compact and power-saving modules in sectors such as healthcare, logistics, and consumer electronics is driving demand. The region's competitive manufacturing landscape and its vigorous investments in new technologies like AI and robotics add weight to the market floor.
Challenge
Integration Complexity and Customization Requirements
For manufactures, introducing SoMs brings with it the need to respond to diverse end-use applications. Whether for manufacturing automation, medical devices, or automotive electronics, it takes considerable expertise to design the system into serving the application. Compatibility issues and complex software or hardware integration stages inevitably push back the project timetable, adding still further costs.
Price Sensitivity and Supply Chain Disruptions
The markets of microchips and other key electronic components have entered a period when demand and supply are along run different terms. Therefore, as manufacturers or end-users have become squeezed financially by rising prices in turn forced them to pass those costs onto their customers, supply chain bottlenecks have been created for both groups.
Depending upon manufacturers located in other countries advertising not only their own products but also those from third parties as ‘web servers’, this practice adds further risk to confidence and supply chains alike. The chip market is caught up in geopolitical and raw-material price fluctuations, throwing pricing flexibility and product availability out of order.
Opportunity
Growing Demand for IoT and Edge Computing Solutions
SoMs are in high demand due to the fact that the Internet of Things and Manufacturing 4.0 each require them. Their small size, non-proprietary nature (they are built as individual units rather than on-site whatever type is going to work), and modular construction make them perfect for embedded applications where real time data processing is needed low power consumption also helps. Application in these fields is broadening demand in sectors as diverse automotive health care consumer electronics for SoMs that are currently meeting great growth needs.
Emergence of AI-Enabled Embedded Systems
Integration of artificial intelligence and machine learning capabilities on embedded systems presents a profitable opportunity for growth. SoMs have evolved over the years to include AI accelerators and increased data processing power, leading to markets like smart monitoring systems, robots, driverless cars and maintenance prediction service areas previously unimagined.
Between 2020 and 2024, driven by advances in embedded computing, increasing automation, and demand for compact hardware solutions. Companies concentrated on broadening their portfolio of SoMs for industrial and medical applications while dealing with component scarcity caused by global supply chain disruptions.
From 2025 to 2035, this market will be led by AI and edge computing's rapidly growing market; as high-performance SoMs are sought after. Future trends include modules that are ultra-low power as well as 5G connected board enhancements, more extensive use of SoMs in aerospace and defence designs.
Market Shifts: A Comparative Analysis 2020 to 2024 vs. 2025 to 2035
| Market Shift | 2020 to 2024 Trends |
|---|---|
| Regulatory Landscape | Compliance with industry standards (e.g., ISO, IEC) and embedded system safety requirements |
| Market Demand | Growth driven by industrial automation, medical devices, and consumer electronics |
| Industry Adoption | Adoption in industrial control, medical imaging, and IoT applications |
| Supply Chain and Sourcing | Component shortages and semiconductor price volatility |
| Market Competition | Dominance of niche embedded system providers and industrial computing specialists |
| Market Growth Drivers | Growth in demand for compact, low-power embedded solutions |
| Sustainability and Energy Efficiency | Increasing focus on energy-efficient modules and components |
| Integration of Digital Innovations | Focus on hardware-software optimization and embedded system integration |
| Advancements in Technology | Advancements in multi-core processors, FPGA integration, and wireless connectivity in SoMs |
| Market Shift | 2025 to 2035 Projections |
|---|---|
| Regulatory Landscape | Stricter cybersecurity regulations and AI governance frameworks impacting embedded system development |
| Market Demand | Expansion into AI-powered edge devices, autonomous systems, and smart infrastructure projects |
| Industry Adoption | Broad adoption across AI, robotics, autonomous vehicles, and advanced defense systems |
| Supply Chain and Sourcing | Stabilization of semiconductor supply chains and regional diversification of manufacturing hubs |
| Market Competition | Entry of large technology firms offering AI-enabled and customizable SoM solutions |
| Market Growth Drivers | Rising adoption of AI, machine learning, and 5G-enabled embedded systems |
| Sustainability and Energy Efficiency | Development of ultra-low-power SoMs and green manufacturing practices in electronics production |
| Integration of Digital Innovations | Enhanced AI-driven SoMs, edge computing platforms, and system-level solutions supporting predictive analytics |
| Advancements in Technology | Emergence of AI accelerators, 5G modules, and next-generation chipsets optimized for real-time analytics and autonomous applications |
In the United States, the System on Module (SoM) market is expanding rapidly, driven by strong demand from such sectors as transportation, aerospace, security, and healthcare. The budding market for IoT devices, along with distribution systems generating intelligence and computation at the edge, directly promotes growth in this business.
The country has a comprehensive infrastructure and is home to many firms involved in semiconductors. The country's investments in strategic R&D programs and the burgeoning numbers of start-ups working in this field all lend impetus to SoM innovation.
| Region | CAGR (2025 to 2035) |
|---|---|
| United States | 14.2% |
In the United Kingdom, the SoM market has been enjoying a period of steady growth one underscored by advances in areas like industrial automation, medical technology, and a resurgent aerospace sector. Countries can also expect AI and machine learning to be integrated into the organic embedded systems it is creating as an "intelligent future" takes shape.
In addition, initiatives from the government are promoting digital innovation and Industry 4.0 projects on a broad front. An excellent example of this type of cooperation between research institutions and ICT companies, being the very best products on offer in today's market place
| Region | CAGR (2025 to 2035) |
|---|---|
| United Kingdom | 14.4% |
The EU's SoM market is mainly driven by smart manufacturing and autonomous vehicles, along with renewable energy solutions. Germany, Italy and France are all key contributors to that industry due to their continued strong focus on high-tech industries that develop vital components. An expanding investment in automation plants and 'intelligent factories' hastens SoM adoption.
Moreover, favourable regulatory environments provided by the state as well as support from government policies for joint-use studies promoting integration of technology serve to accelerate the trend across all sectors. Short-term growth may be dampened by things such as the chip shortage and geopolitical uncertainties, but with a strong global outlook for embedded computing, the long-term benefits are guaranteed.
| Region | CAGR (2025 to 2035) |
|---|---|
| European Union | 14.6% |
In South Korea, the SoM market is gaining ground steadily, buoyed by the nation's preeminent role in semiconductors, electronics and telecommunications. As a result, the big tech companies as well as OEMs today are increasingly involved in embedded systems development: these are, in turn, migrating across a range of applications from automobiles to consumer electronics and high precision manufacturing.
At the national level, concerted attempts to reinforce the country's digital infrastructure and extend the reach of smart cities are also serving to stimulate demand for SoM solutions.
| Region | CAGR (2025 to 2035) |
|---|---|
| South Korea | 14.8% |
In the System on Module (SoM) market, ARM architecture is the largest product segment. It is not simply a matter of its low power consumption or broad adoption across industries, but it also excels in: performance. ARM-based SoMs are popular in embedded systems because they strike the ideal balance between energy efficiency and processing power, at the same time being suitable for battery-operated portable devices.
ARM cores are designed for versatility and scalability, so companies can effectively tailor solutions to a range of applications from IoT devices and medical equipment all the way through to industrial automation systems or consumer electronics. Moreover, ARM's large ecosystem, leveraging all kinds of development tools and software there are, makes it easier for people to quickly build and deploy new Writing innovative solutions.
ARM SoMs are also gaining ground in smart devices and sensor applications as the tide of edge computing and AI integration on machines grows increasing.
Industrial automation is the largest application segment for the System on Module market, with automation in industry 4.0 technologies and digitization of manufacturing processes driving demand. SoMs are at the heart of embedded control systems, industrial robots, human-machine interfaces (HMIs), and real-time data processing units for smart factories Their small size, high reliability and powerful thin client process capability are especially suited for precisely controlling automated systems and linking peripherals to them.
The need for SoMs in industrial automation is also driven by a requirement to improve operational efficiency, cut down on downtime and offer predictive maintenance capabilities. Automation companies prefer SoMs because they make the system integration process easier, are used in all types of specialized applications Furthermore, the increasing emphasis on Industrial IoT, edge computing and robotics means more and more sensor hubs, programmable logic controllers (PLCs), and factory floor monitoring systems are integrating SoMs.
The System on Module (SoM) market is growing steadily due to increasing demand for embedded computing solutions across industries such as automotive, healthcare, industrial automation, and consumer electronics. The market is driven by advancements in IoT, AI, and edge computing, as well as rising adoption of compact and scalable embedded systems.
Market Share Analysis by Key Players & Manufacturers
| Company/Organization Name | Estimated Market Share (%) |
|---|---|
| Kontron AG | 18-22% |
| Advantech Co., Ltd. | 14-18% |
| Congatec AG | 12-16% |
| Aaeon Technology Inc. | 8-12% |
| Toradex AG | 5-9% |
| Other Manufacturers | 30-40% |
| Company/Organization Name | Key Offerings/Activities |
|---|---|
| Kontron AG | High-performance SoMs for industrial automation, medical, and transportation applications. |
| Advantech Co., Ltd. | AI-enabled SoM solutions, IoT-ready platforms, and edge computing modules. |
| Congatec AG | Industrial-grade SoMs with a focus on rugged design and low-power consumption. |
| Aaeon Technology Inc. | Embedded computing modules tailored for robotics, smart cities, and AI applications. |
| Toradex AG | Scalable SoMs optimized for low-power and high-efficiency embedded applications. |
Key Market Insights
Kontron AG (18-22%)
Kontron leads the SoM market with advanced embedded solutions for mission-critical applications in transportation, medical, and industrial sectors.
Advantech Co., Ltd. (14-18%)
Advantech focuses on AI-driven and IoT-compatible SoM platforms, widely adopted in smart manufacturing and edge computing.
Congatec AG (12-16%)
Congatec specializes in rugged, industrial-grade SoMs that support wide temperature ranges and low power usage.
Aaeon Technology Inc. (8-12%)
Aaeon offers a wide range of SoMs suited for robotics, AI vision, and edge AI projects.
Toradex AG (5-9%)
Toradex provides energy-efficient and scalable SoM platforms widely used in industrial and medical device applications.
Other Key Players (30-40% Combined)
Other companies and ODMs contribute to innovation in SoM technology, including:
The overall market size for system on module market was USD 1,520.8 Million in 2025.
The system on module market is expected to reach USD 5,890.4 Million in 2035.
The demand for the System on Module market will be driven by rising adoption in medical devices, transportation systems, industrial automation, entertainment electronics, and testing equipment, supported by advancements in ARM, x86, and Power Architecture technologies during the forecast period.
The top 5 countries which drives the development of system on module market are USA, European Union, Japan, South Korea and UK.
ARM Architecture demand supplier to command significant share over the assessment period.
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System on Module Market
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