The global system on module market is anticipated to grow at a significant CAGR of 10.2% during the forecast period. There are several drivers responsible for the growth of the systems in module market. One of the drivers of the market is the high adoption of embedded computers in industrial applications and the Internet of Things. The adoption of these technologies provides several benefits such as stability, cost reduction, and reliability, which would benefit the manufactures and propel the growth of the system on modules market. Many wireless connectivity technologies, imaging solutions, and smart sensors are being introduced with advancements in technologies. 

These advancements in technologies have enabled manufactures to improve applications and boost reliability by providing a 'single chip with multiple cores' system. For instance, in February 2020, the Verdin -a family of systems on the module was launched by Toradex, which provided a future-proof and modern set of interfaces focusing on ease of use and robustness. Furthermore, the system on module market is also being boosted by the growing demand for rugged embedded computers that can be utilized in applications in the aerospace and defense industry. In many manufactured end products embedded platforms are used, system on module integrates unstable memory technology like RAM DRAM and provides a stable flash memory of a processor subsystem on a single module. Which would further drive the growth of the system on module market.

Impact of COVID-19 Pandemic on Global System on Module Market

The COVID-19 pandemic has hindered the market demand of the system on modules. Due to the COVID-19 pandemic governments across the globe imposed heavy trade restrictions and lockdowns, with some governments imposing only partial lockdowns and operating with several restrictions. The hardware supply chains were heavily disrupted due to the ban on international trade and the manufactures that were operating in these times had to operate with a minimal workforce. Apart from hardware, the software supplies for X86 were not disrupted, and updates were rolled out regularly by the key market players. Furthermore, the system on module industry saw a major decline in the demand, and the adoption system on the module was on a decline. Recently, as economies have re-opened and restrictions were relaxed, the system on the module market is expected to show positive growth.

Segmental Outlook 

The global system on the module market is segmented based on processor and application. Based on the processor, the market is classified as ARM, X86, PowerPC, and GPU. Among the processor segment, the ARM system on module is expected to majorly dominate the overall system on module market owing to the increased demand for ARM-based processors in consumer electronics. Based on the application, the market has been segmented as industrial automation, aerospace & defense, consumer electronics, healthcare, automotive, and others. 

Global System on Module Market Share by Processor, 2021 (%)

The ARM Segment Holds the Major Share in the Global System on Module Market

Out of the processor segment, the ARM dominated the global system on module market in 2021 and is anticipated to grow further during the forecast years. This majority of the segment can be contributed to the less complexity offered by the ARM-based processor compared to X86 processors when used in modules and boards. Due to the ARM's single cycle processing, the demand from various consumer electronics such as smartphones, tablets, multimedia players, and other wearable devices would significantly drive the growth of the market share of ARM in the system on module market.

Regional Outlooks

The global system on module market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others), and the Rest of the World (the Middle East & Africa, and Latin America).  Among these, Europe is likely to show notable growth in the global system on module market owing to the increased adoption of new technologies such as AI and IoT in many sectors such as medical, industrial, and defense, and ongoing development of AI-based therapeutic & diagnostic devices for medical applications. Furthermore, medical equipment such as pulse oximeter, fit bits, glucose monitor, and heartrate monitor also use integrated systems on module. This massive application will further help the growth of the European market.  

Global System on Module Market Growth, By Region 2021-2027

The Asia-Pacific Region Emerge as a Fastest Growing in the Global System on Module Market

Geographically, Asia-Pacific showed the fastest growth in the market in 2021, and it is estimated that to be the fastest growing region again in the market during the forecast period. The market growth in the region is attributed to the high adoption of control systems, and IoT technologies in end-user industries to handle processes. The flourishing trends of deploying industrial robots in the manufacturing sector is significantly driving the adoption of system on modules in industrial automation. Further, the continuous advancements in communication systems and sensors are also accelerating the demand for system on modules to deliver high productivity. Moreover, Industry 4.0 has bolstered the adoption of service robots as robotics helps achieve high manufacturing productivity. This led to the market growth. 

Market Players Outlook

The major companies serving the global System on module market include AAEON, Advantech Co., Ltd., Avnet, Inc., Congatec GmbH, Intel Corp., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in 2020, to establish a distribution network in India Reinfold and SoMLabs signed a contract. This contract enabled all SoMLabs products to be offered through Reinfolds offerings.

The Report Covers

    • Market value data analysis of 2020 and forecast to 2027.

    • Annualized market revenues ($ million) for each market segment.

    • Country-wise analysis of major geographical regions.

    • Key companies operating in the global System on module market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

   • Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

    • Analysis of market entry and market expansion strategies.

    • Competitive strategies by identifying ‘who-stands-where’ in the market.