Micro System-on-Module (SOM) Market Size, Share, Growth, Forecast 2030

Micro System-on-Module (SOM) Industry Prospective:

The global micro system-on-module (SOM) market size was worth around USD 956.25 million in 2022 and is predicted to grow to around USD 1956.9 million by 2030 with a compound annual growth rate (CAGR) of roughly 9.56% between 2023 and 2030.

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Micro System-on-Module (SOM) Market: Overview

A micro system-on-module (SOM) is an integral part of the larger family of modular embedded computing solutions. The typical dimensions of micro SOM range from 25mm x 25mm to 30mm x 40mm while being 3.5mm in height. In other words, they can be called the compact version of the more prominently known SOM that is responsible for providing core units of all forms of the embedded processing system that includes memory blocks, communication interfaces, and processor cores. All of these components are installed on a single unit of production-ready printed circuit board or PCB.

SOMs have become extremely popular in recent times and are used extensively in applications such as security cameras and robots owing to the modular approach adopted by system-on-modules for functional purposes. Furthermore, the micro version of SOM which promotes reduced power usage has shown excellent suitability for modern embedded systems including wearables and the Internet of Things (IoT) which in turn is expected to help the market for micro SOM witness higher growth during the forecast period. While the growth trajectory for the global micro system-on-module market looks promising it will be subject to certain growth restrictions and challenges in the coming years.

Key Insights:

• As per the analysis shared by our research analyst, the global micro system-on-module (SOM) market is estimated to grow annually at a CAGR of around 9.56% over the forecast period (2023-2030)
• In terms of revenue, the global micro system-on-module (SOM) market size was valued at around USD 956.25 million in 2022 and is predicted to grow to around USD 1956.9 million, by 2030.
• The micro system-on-module market is projected to grow at a significant rate due to the growing demand for sustainable packaging
• Based on end-user segmentation, automotive was predicted to show maximum market share in the year 2022
• Based on application segmentation, Internet of Things was the leading application in 2022
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022

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Micro System-on-Module (SOM) Market: Growth Drivers

Increasing industrial automation to push higher growth in the market

The global micro system-on-module (SOM) is expected to register steady growth propelled by the increasing demand and need for industrial automation. This trend includes the use of novel robotics and computer software for the ultimate control of processes and machinery. Industrial automation primarily focuses on aspects of businesses such as quality control, manufacturing, and material handling. There are several advantages of adopting industrial automation. Some of them include achieving higher flexibility in terms of the production process, greater productivity, cost reduction, excellent safety, and enhanced human capacity. Studies indicate that investing in automation can help companies improve productivity by over 400%. It can also translate into reduced costs by nearly 79%.

In addition to this, the ongoing changes and recent trends associated with industrial automation are expected to shape the demand for technologies that promote automation. For instance, the extensive use of virtual reality (VR) and augmented reality (AR) not only in the field of entertainment but other industries including healthcare may contribute to a higher global market growth rate. Market research suggests that AR and VR in the healthcare industry are expected to become a USD 18 billion industry by 2030.

Growth in smart farming to contribute significantly toward the market growth rate

Smart farming refers to the application of advanced technology infrastructure in the agriculture industry. It deals with systems such as IoT, cloud, and big data to name a few. In June 2023, Sweden and India collaborated to launch ‘Smart Farm’, a solar-powered unit meant for small-hold farmers. It encourages food producers to use sustainable food development systems. The facility is home to some of the most advanced technologies. Moreover, rising private investments in smart farming coupled with a rise in government support could trigger higher consumption of micro SOM during the projection period.

Micro System-on-Module (SOM) Market: Restraints

Performance limitations in comparison to custom-made PCB to restrict the market growth

The micro system-on-module market growth trend may face restrictions due to the performance limitations of micro SOM when compared to more traditionally used customized printed circuit boards, especially simple projects. PCBs are known to be more cost-effective and affordable. They are also easier to produce and maintain over time. Rising innovation aimed at developing compact and higher-grade PCBs could further limit the market size of micro SOM. Additionally, integrating new components such as micro system-on-module in legacy systems further inhibits growth in the micro SOM industry.

Micro System-on-Module (SOM) Market: Opportunities

Growing demand rate for miniaturization in electronic systems to provide growth opportunities

The micro system-on-module industry is expected to come across higher growth opportunities led by the increasing demand for miniaturization in electronic systems. The dimensions of transistor nodes are going down. Such trends allow chip sizes to be reduced without compromising the performance of the system. Studies indicate that, in certain circumstances, the performance may increase as the chip size is reduced. Furthermore, the two main advantages offered by miniaturization which include shorter signal paths owing to greater density have added to the growing demand for miniaturized electronic devices and other technologies.

Rising investments toward smart cities to act in favor of market expansion

Several countries are diverting resources toward the development of smart cities which is expected to push the demand for micro SOM. In July 2023, Eurazeo announced the closure of its Smart City Fund II at €400 million. The fund will be used to develop logistics, mobility, and renewable energy. Additionally, in May 2022, the European Commission (EC) selected 100 cities that will witness the development of smart cities. The project is expected to be completed by 2030.

Micro System-on-Module (SOM) Market: Challenges

Managing regulatory compliance in the international market to pose a major threat

One of the key challenges faced by the global micro system-on-module market players is related to the management of regulatory compliance especially in the international market. Suppliers and manufacturers must ensure that the final products consisting of micro SOM or the unit itself comply with regional regulations when supplying in the international industry. The problem further intensifies due to changing trading rules in the semiconductor industry fueled by growing demand for ultra-advanced smart systems.

Micro System-on-Module (SOM) Market: Segmentation

The global micro system-on-module (SOM) market is segmented based on end-user, application, and region.

Based on end-user, the micro system-on-module industry  segments are robotics, automotive, industrial automation, medical, aerospace, and others. In 2022, the highest growth was observed in the automotive segment. The industry deals with all operational aspects including designing and manufacturing of motor vehicles. The growing demand for connected vehicles allowed higher consumption of micro SOM in the automotive industry. The rising demand for affordable vehicles propelled by the growing sale of electric vehicles (EVs) is important for segmental expansion. More than 1 million EVs were sold in India in fiscal year 2023. Industrial automation is projected to generate significant revenue driven by surging demand for automation in industrial units.

Based on application, the micro system-on-module industry  is divided into medical devices, blade servers, network appliances, Internet of Things, data acquisition, and others. In 2022, the Internet of Things dominated the global market growth. IoT deals with a large network of things or physical objects embedded with software, sensors, and other systems. In 2022, the global IoT market was valued at more than USD 322 billion and by 2030 it is expected to grow at a CAGR of more than 15% as IoT continues to find greater application in end-user industries such as transportation, agriculture, retail, government, health care, and banking services. Blade servers are another set of crucial segments for the micro SOM industry growth as complex computing environments are in demand.

Micro System-on-Module (SOM) Market: Report Scope

Micro System-on-Module (SOM) Market: Regional Analysis

Asia-Pacific to dominate market growth rate during the projection period

Research indicates that the global micro system-on-module (SOM) market will be dominated by Asia-Pacific by 2030. The growth is expected to be led by countries such as China, Taiwan, India, Japan, and other nations. Taiwan is currently the world’s leading provider of all forms of semiconductors. In 2021, the country witnessed an increase of nearly 27% in terms of electronic components as compared to 2020. Additionally, China is the second-highest semiconductor manufacturer. The increasing population, growing demand and use of electronic devices, and regional dominance of China as a manufacturing hub for all electronic and non-electronic goods are some of the crucial reasons contributing to higher growth in the Asia-Pacific region.

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Moreover, India has increased its spending to promote the regional semiconductor industry. In July 2023, the country witnessed an announcement of investment worth USD 800 million by Micron Technology. The funds will be used to construct a novel semiconductor assembly and test unit in Gujarat state of India.

Micro System-on-Module (SOM) Market: Competitive Analysis

The global micro system-on-module (SOM) market is led by players like:

• ADL Embedded Solutions Inc
• Atmel Corporation
• National Instruments Corporation
• Toradex AG
• SolidRun Ltd.
• MEN Micro Inc.
• VIA Technologies Inc.
• Infineon Technology
• Intel Corporation
• Texas Instruments
• Technique Innovator Inc.
• Advantech Sealevel Systems.

The global micro system-on-module (SOM) market is segmented as follows:

By End-User

• Robotics
• Automotive
• Industrial Automation
• Medical
• Aerospace
• Others

By Application

• Medical Devices
• Blade Servers
• Network Appliances
• Internet of Things
• Data Acquisition
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa