System on Module Market is Projected to Reach USD 2.5 Billion by 2026
According to a recent study from market research firm Global Market Insights, The System on module market is anticipated to gain momentum in view of the product’s several technological features in line with increasing adoption of smart and connected solutions across diverse industries. Rising construction of smart factories globally may generate new growth opportunities for system on module manufacturers and suppliers. The propagation of IoT and AI technologies is quickening the adoption of SoM in new application areas.
The COVID-19 pandemic has resulted in suspension of operations across several manufacturing plants. This has resulted in restricting market opportunities for system on module manufacturers and suppliers. Due to the lockdowns imposed by governments, the labor community have moved back to their hometown, resulting in lack of engineers across manufacturing facilities, further diminishing production. However, rising initiatives taken by governments to resume manufacturing operations could propel the demand for SoMs over time.
With respect to the type of product, power architecture has gained considerable recognition over the years. This is due to the fact that processors with power architecture accelerate the integration capability, provide effective software/hardware compatibility along with enhancing performance.
Regionally speaking, Europe has emerged as a prominent system on module market over the years due to the regional development in the automobile industry. Moreover, the emergence of autonomous vehicles has magnified the growth prospects of the market over time. As per the European Patent Office, the total number of registered patent applications across Europe with regards to autonomous vehicles was growing 20 times faster when compared to other technologies.
The medical industry has witnessed considerable developments in both developed and developing countries in order to cater to the growing healthcare requirements of the people, as well, the rise in incidences of chronic diseases. In 2019, the medical applications accounted for more than 15% of the global system on module market share, due to the rapid adoption of AI in the sector to improve the quality of service by managing patients in real-time, along with optimizing the results with high accuracy.
The key players operating in the system on module market include Advantech Co., Ltd., National Instruments Corporation, Eurotech, Inc., Kontron S&T AG, Congatec AG, Digi International, Inc., and VIA Technologies, Inc., among others.
Companies operating in the system on module market are constantly focusing on new product development to be competitive in the market. Market players are also establishing collaboration and merger strategies to increase system on module production and hasten their market position. For Instance, in February 2020, ARIES Embedded developed its new SoM “M100PFS” based on the FPGA family of Microchip.