Global market for System-on-Chip (SoC) has been covered under the scope of this report. Functionally, a source is similar to a central processing unit (CPU) of a computer. The differentiating points of a SoC from a CPU are that all the features of the source are embedded on a single chip and is also much smaller in size. Additionally a SoC also may contain a graphic processing unit (GPU), memory and power management circuits among others. The smaller form factor combined with computing power of SoCs has led to its integration into various devices such as mobile phones, smart washing machines, tablets, smart air-conditioners, smart television and set-top boxes among others. Upgraded SoCs are being designed to smaller size, but has doubled the computing speed than its predecessors. Also, the newer SoCs are more energy efficient and generates much less heat when compared to their predecessors.
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The global source market is primarily driven by an increase in the demand for smarter and power efficient electronic devices across all sectors. Recent years have seen a huge increase in demand for connecting devices such as smart phones and tablets among others. Also, the advent of smart gadgets, such as smart television and smart air conditioners among others, has also been highly influential in the growth of the demand for SoCs. The global increase in internet users has been significantly boosting the demand for ‘connected’ devices which are again mostly powered by SoCs having internet centric applications. Thus, it also boosted the global market for SoCs. The dimensional scaling of integrated circuits (IC), leading to declining cost per function and increased manifestation of Moore’s law have also been playing a significant role in positively driving this market. Development of newer generations of SoCs having multi-core technologies and embedded graphics systems has been another factor which also played a huge role in the growth of this market. With the rising demand of compact and scalable ICs in global electronic industry, the SoC market can be expected to be impacted positively.
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The global source market has been segmented into four regions: North America, Europe, Asia Pacific (APAC) and Rest of the World (RoW). Asia-Pacific held the largest market share in 2014. Increased demand for smarter consumer electronics coupled with high growth in the number of internet users and higher acceptance of connected devices are the main driving factors in this part of the world. North America was the second largest market, followed by Europe. The SoC market in North America was mainly driven by factors such as an increase in demand for smart devices, higher application of SoCs in automobiles and advancement in electronic devices targeted at sectors such as telecommunication, military and healthcare among others. The growth in Europe can also be attributed to factors similar to North America.
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The global SoC market, by types, can be divided into four segments such as digital, analog, mixed signal and others. The demand for smarter devices with advanced functionalities has led the mixed signal SoCs segment to have the largest market share. On the basis of applications, the market can be segmented into four segments. They are telecommunication, consumer electronics, automotive and others. The high growth in demand for smart devices has led to consumer electronics being the largest segment of market revenue.
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