System on Module (SoM) Market
By Product;
ARM Architecture, x86 Architecture and Power ArchitectureBy Outlook;
COM EXPRESS, SMARC, QSEVEN, and ETX/XTXBy Form Factor;
Miniature Modules and Standard ModulesBy Integration Level;
Standalone Modules and Embedded SystemsBy Application;
Industrial Automation, Medical, Entertainment, Transportation, Test & Measurement and OthersBy Geography;
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America - Report Timeline (2021 - 2031)System on Module (SoM) Market Overview
System on Module (SoM) Market (USD Million)
System on Module (SoM) Market was valued at USD 2,196.50 million in the year 2024. The size of this market is expected to increase to USD 3,813.48 million by the year 2031, while growing at a Compounded Annual Growth Rate (CAGR) of 8.2%.
System on Module (SoM) Market
*Market size in USD million
CAGR 8.2 %
Study Period | 2025 - 2031 |
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Base Year | 2024 |
CAGR (%) | 8.2 % |
Market Size (2024) | USD 2,196.50 Million |
Market Size (2031) | USD 3,813.48 Million |
Market Concentration | Medium |
Report Pages | 338 |
Major Players
- AAEON Technology, Inc.
- Advantech Co., Ltd.
- Avnet, Inc.
- Avalue Technology
- Axiomtek Co., Ltd.
- Connect Tech, Inc.
- congatec AG
- EMAC, Inc.
- Eurotech, Inc.
- Kontron S&T AG
- Microchip Technology, Inc.
- National Instruments Corporation
Market Concentration
Consolidated - Market dominated by 1 - 5 major players
System on Module (SoM) Market
Fragmented - Highly competitive market without dominant players
The System on Module (SoM) Market is expanding as industries increasingly embrace modular embedded solutions for accelerated development and scalable deployment. With over 62% of system designers turning to SoMs, the trend reflects a shift toward compact and efficient computing systems capable of supporting diverse applications across emerging sectors.
Enhanced Computing Capabilities Driving Growth
SoMs integrated with multi-core CPUs, GPUs, and FPGAs are revolutionizing performance for real-time systems. Approximately 48% of engineers favor SoMs for their enhanced processing power and ability to reduce R&D effort. These features are proving essential in fields such as automation, healthcare electronics, and AI-driven applications.
IoT and Edge Computing Fueling Demand
Demand for low-latency, power-efficient SoMs is surging as more industries deploy IoT and edge computing solutions. Around 55% of manufacturers are embedding SoMs into smart devices to support real-time analytics and seamless connectivity, highlighting their vital role in next-generation edge infrastructure.
Speeding Development Through Modular Design
With about 67% of product developers emphasizing reduced design complexity and quicker deployment, SoMs are gaining traction for delivering pre-validated, ready-to-integrate solutions. Their modularity accelerates product lifecycles, reduces risk, and enables faster time-to-market for new innovations.
System on Module (SoM) Market Recent Developments
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In August 2022, Deutsche Beteiligungs acquired Cognatec AG with a valuation of US$ 136 million.
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In October 2021, Seco acquired a hardware & software IoT provider, Garz and Fricke Group, to strengthen the company's position in the European market.
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In September 2021, TechNexion partnered with Emteria to expand embedded products in the long term on the Android based operating system.
System on Module (SoM) Market Segment Analysis
In this report, the System on Module (SoM) Market has been segmented by Product,Outlook, Form Factor, Integration Level, Application, and Geography.
System on Module (SoM) Market, Segmentation by Product
The System on Module (SoM) Market has been segmented by Product into ARM Architecture, x86 Architecture, and Power Architecture.
ARM Architecture
The ARM architecture segment holds a dominant position in the SoM market due to its low power consumption and scalability. It is widely used in embedded systems, consumer electronics, and IoT devices. Its support for multiple operating systems and development tools accelerates adoption. The cost-efficiency and large ecosystem further boost its appeal for developers and OEMs.
x86 Architecture
x86-based SoMs are preferred in applications requiring high-performance computing, such as industrial automation and medical imaging. Their compatibility with powerful OS platforms like Windows and Linux enables advanced functionalities. While they consume more power, they deliver enhanced processing capability. This architecture suits scenarios prioritizing performance and compatibility.
Power Architecture
Power Architecture is mainly used in real-time processing and safety-critical environments such as automotive and aerospace. Its ruggedness and ability to perform reliably under extreme conditions make it ideal for niche applications. Despite limited market share, it remains essential for long-life cycle products. OEMs value its robustness and reliability.
System on Module (SoM) Market, Segmentation by Outlook
The System on Module (SoM) Market has been segmented by Outlook into COM EXPRESS, SMARC, QSEVEN, and ETX/XTX.
COM EXPRESS
COM Express modules are known for their high computing power and flexible I/O configurations. They are favored in industrial and embedded computing where performance and scalability are crucial. These modules support a variety of CPUs and reduce development time. Their modular structure also supports future upgrades and efficient system design.
SMARC
SMARC modules are optimized for low-power consumption and offer advanced multimedia capabilities. They are widely used in fanless and compact embedded devices. The support for both ARM and x86 architectures broadens their application scope. Their compact form factor and energy efficiency make them ideal for medical and infotainment systems.
QSEVEN
Qseven is designed for ultra-mobile and space-constrained devices. Its small size and support for fast boot-up make it popular in automotive and diagnostic tools. It enables quick integration and low power usage. This format helps reduce overall system complexity and is useful in price-sensitive segments.
ETX/XTX
ETX and XTX modules are legacy form factors still relevant for long-life embedded applications. They offer backward compatibility and are ideal for industrial and military systems that need consistent hardware support. Despite being older technologies, they are critical for retrofit and replacement projects.
System on Module (SoM) Market, Segmentation by Form Factor
The System on Module (SoM) Market has been segmented by Form Factor into Miniature Modules and Standard Modules.
Miniature Modules
Miniature SoMs are tailored for applications with strict space and power constraints, such as wearables, drones, and handheld devices. These modules offer compact size without compromising essential computing capabilities. They play a pivotal role in portable and mobile embedded systems. The rising demand for miniaturized electronics supports their market growth.
Standard Modules
Standard SoMs are larger but offer more processing power, memory, and I/O options. These modules are essential in automation, healthcare, and transport sectors. Their design allows customized integration with baseboards. The standardization makes them adaptable for future upgrades and simplifies procurement across industries.
System on Module (SoM) Market, Segmentation by Integration Level
The System on Module (SoM) Market has been segmented by Integration Level into Standalone Modules and Embedded Systems.
Standalone Modules
Standalone SoMs are fully functional units that do not require a separate baseboard. They offer a complete solution with integrated memory, processors, and interfaces. These modules enable rapid prototyping and faster go-to-market. Their flexibility is ideal for early-stage product development or minimal hardware setups.
Embedded Systems
Embedded SoMs rely on a custom baseboard and offer greater design flexibility. They are popular in scenarios that require tailored functionality and scalability. These systems provide optimized solutions for applications in transportation, factory automation, and security. Long-term support and rugged design make them viable for mission-critical applications.
System on Module (SoM) Market, Segmentation by Application
The System on Module (SoM) Market has been segmented by Application into Industrial Automation, Medical, Entertainment, Transportation, Test & Measurement, and Others.
Industrial Automation
SoMs power advanced automation systems by enabling real-time data processing and machine control. Their durability and compatibility with industrial protocols make them ideal for smart factories and robotics. The shift toward Industry 4.0 significantly boosts this segment’s relevance. Increased focus on operational efficiency is driving growth.
Medical
Medical devices leverage SoMs for diagnostic imaging, portable monitoring, and surgical systems. These modules meet the industry's need for high reliability and regulatory compliance. Their compact size supports the trend toward miniaturized healthcare electronics. The growing demand for remote healthcare solutions fuels expansion.
Entertainment
SoMs are central to devices like AR/VR headsets, gaming consoles, and media players. Their ability to process high-definition content and multimedia data enables immersive entertainment experiences. As users demand richer content, the need for efficient multimedia hardware grows. The segment benefits from advances in GPU and audio technology.
Transportation
SoMs support navigation, infotainment, and telematics systems in modern vehicles. They facilitate features such as real-time communication, location tracking, and AI-driven safety. With rising adoption of electric and autonomous vehicles, the demand for intelligent embedded modules is accelerating. Ruggedness and reliability remain top priorities in this sector.
Test & Measurement
Instruments used for signal analysis, calibration, and quality control integrate SoMs for reliable processing. These modules offer the precision and speed required for laboratory and industrial testing. They are designed for high accuracy and real-time computation. Their versatility makes them a preferred choice for diverse testing environments.
Others
This category includes applications in robotics, aerospace, defense, and smart retail. SoMs enable these sectors with scalable computing, real-time decision-making, and long-life reliability. Their usage is expanding as AI and edge computing requirements rise. These emerging areas promise long-term growth potential for SoM adoption.
System on Module (SoM) Market, Segmentation by Geography
In this report, the System on Module (SoM) Market has been segmented by Geography into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.
Regions and Countries Analyzed in this Report
System on Module (SoM) Market Share (%), by Geographical Region
North America
North America accounts for around 34% of the market, with the U.S. leading in semiconductor innovation and defense applications. High R&D spending and early adoption of embedded tech drive this region’s dominance. It benefits from a strong ecosystem of OEMs and component manufacturers. The shift toward smart infrastructure further expands opportunities.
Europe
Europe contributes approximately 25% to the global share, with demand rising in automotive, industrial automation, and healthcare. Germany, France, and the UK are key markets due to their strong focus on engineering and compliance. Government incentives for digital transformation support expansion. Sustainability-focused solutions also promote module adoption.
Asia Pacific
Asia Pacific dominates the market with over 38% share, thanks to high-volume electronics production in China, Japan, and South Korea. The region leads in smart device, robotics, and IoT applications. Manufacturing growth and cost advantages drive SoM adoption. Supportive policies for smart factories and 5G infrastructure provide additional momentum.
Middle East & Africa
The region holds about 2% of the market share, with adoption in transport, energy, and automation sectors. Infrastructure projects in the Gulf region drive demand. Governments are investing in smart city projects and connected technologies. The market remains in the early stage but shows strong potential for growth.
Latin America
Latin America represents roughly 1% of the market, led by Brazil and Mexico. Adoption is rising in security, healthcare, and industrial automation. As digital transformation accelerates, the region is expected to witness steady growth. Emerging local manufacturers and IoT-driven solutions are contributing to adoption rates.
Market Trends
This report provides an in depth analysis of various factors that impact the dynamics of Global System on Module (SoM) Market. These factors include; Market Drivers, Restraints and Opportunities
Drivers, Restraints and Opportunity
Drivers
- Rising IoT Adoption
- Demand for Compact Computing
- Technological Advancements
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Accelerated Time-to-Market: Accelerated time-to-market is a significant driver in the System on Module (SoM) market, reflecting the industry's demand for rapid product development and deployment cycles. SoMs offer pre-integrated, standardized computing platforms that reduce the complexity and time required for designing embedded systems. By leveraging SoMs, companies can focus more on application-specific customization and software development rather than starting from scratch with hardware design.
This speed-to-market advantage is particularly crucial in competitive industries such as consumer electronics, industrial automation, and automotive sectors where product lifecycles are short, and innovation cycles are rapid. SoMs enable companies to shorten their development timelines, respond quickly to market demands, and capitalize on emerging trends like IoT and AI without compromising on quality or performance. As technological advancements continue to enhance SoM capabilities, the market is poised to expand further, driven by the imperative to innovate faster and stay ahead in a dynamic global market landscape.
Restraints
- High Development Costs
- Compatibility Challenges
- Security Concerns
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Limited Customization: Limited customization poses a challenge in the System on Module (SoM) market, particularly for industries requiring highly specialized solutions. While SoMs provide standardized computing platforms that streamline development and reduce time-to-market, their pre-integrated nature can limit flexibility in meeting specific hardware requirements or unique application needs.
For industries such as aerospace, defense, and medical devices, where stringent regulatory compliance and specialized functionalities are paramount, the lack of extensive customization options in off-the-shelf SoMs may be a deterrent. Customizing SoMs often involves additional costs and complexities, requiring close collaboration between SoM providers and end-users to ensure that the module meets precise technical specifications and operational requirements
Opportunities
- Expansion in AI Applications
- Emerging IoT Markets
- Advancements in Connectivity
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Customization for Verticals: Customization for verticals is a critical opportunity in the System on Module (SoM) market, driven by the diverse and specific needs of different industries. Vertical markets such as automotive, industrial automation, healthcare, and telecommunications often require tailored solutions that address unique application requirements, regulatory standards, and environmental conditions.
SoM providers are increasingly focusing on developing customizable modules that can be adapted to specific vertical applications. This involves offering flexible configurations for processors, memory, connectivity options, and interfaces to accommodate varying performance levels, power requirements, and operational environments. By enabling customization, SoM manufacturers empower companies to integrate advanced functionalities and features that are essential for their particular industry, such as real-time processing capabilities for industrial automation or high reliability and security features for medical devices.
Competitive Landscape Analysis
Key players in Global System on Module (SoM) Market include
- AAEON Technology, Inc.
- Advantech Co., Ltd.
- Avnet, Inc.
- Avalue Technology
- Axiomtek Co., Ltd.
- Connect Tech, Inc.
- congatec AG
- EMAC, Inc.
- Eurotech, Inc.
- Kontron S&T AG
- Microchip Technology, Inc.
- National Instruments Corporation
In this report, the profile of each market player provides following information:
- Company Overview and Product Portfolio
- Key Developments
- Financial Overview
- Strategies
- Company SWOT Analysis
- Introduction
- Research Objectives and Assumptions
- Research Methodology
- Abbreviations
- Market Definition & Study Scope
- Executive Summary
- Market Snapshot, By Product
- Market Snapshot, By Outlook
- Market Snapshot, By Form Factor
- Market Snapshot, By Integration Level
- Market Snapshot, By Application
- Market Snapshot, By Region
- System on Module (SoM) Market Dynamics
- Drivers, Restraints and Opportunities
- Drivers
- Rising IoT Adoption
- Demand for Compact Computing
- Technological Advancements
- Accelerated Time-to-Market
- Restraints
- High Development Costs
- Compatibility Challenges
- Security Concerns
- Limited Customization
- Opportunities
- Expansion in AI Applications
- Emerging IoT Markets
- Advancements in Connectivity
- Customization for Verticals
- Drivers
- PEST Analysis
- Political Analysis
- Economic Analysis
- Social Analysis
- Technological Analysis
- Porter's Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of Substitutes
- Threat of New Entrants
- Competitive Rivalry
- Drivers, Restraints and Opportunities
- Market Segmentation
- System on Module (SoM) Market, By Product, 2021 - 2031 (USD Million)
- ARM Architecture
- x86 Architecture
- Power Architecture
- System on Module (SoM) Market, By Outlook, 2021 - 2031 (USD Million)
- COM EXPRESS
- SMARC
- QSEVEN
- ETX/XTX.
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System on Module (SoM) Market, By Form Factor, 2021 - 2031 (USD Million)
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Miniature Modules
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Standard Modules
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System on Module (SoM) Market, By Integration Level, 2021 - 2031 (USD Million)
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Standalone Modules
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Embedded Systems
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- System on Module (SoM) Market, By Application, 2021 - 2031 (USD Million)
- Industrial Automation
- Medical
- Entertainment
- Transportation
- Test & Measurement
- Others
- System on Module (SoM) Market, By Geography, 2021 - 2031 (USD Million)
- North America
- United States
- Canada
- Europe
- Germany
- United Kingdom
- France
- Italy
- Spain
- Nordic
- Benelux
- Rest of Europe
- Asia Pacific
- Japan
- China
- India
- Australia & New Zealand
- South Korea
- ASEAN (Association of South East Asian Countries)
- Rest of Asia Pacific
- Middle East & Africa
- GCC
- Israel
- South Africa
- Rest of Middle East & Africa
- Latin America
- Brazil
- Mexico
- Argentina
- Rest of Latin America
- North America
- System on Module (SoM) Market, By Product, 2021 - 2031 (USD Million)
- Competitive Landscape
- Company Profiles
- AAEON Technology, Inc.
- Advantech Co., Ltd.
- Avnet, Inc.
- Avalue Technology
- Axiomtek Co., Ltd.
- Connect Tech, Inc.
- congatec AG
- EMAC, Inc.
- Eurotech, Inc.
- Kontron S&T AG
- Microchip Technology, Inc.
- National Instruments Corporation
- Company Profiles
- Analyst Views
- Future Outlook of the Market