Press Release:
WORLDWIDE SYSTEM-ON-CHIP (SOC) MARKET TO REACH $43.2 BILLION BY 2009
Press Release
News Article October 2004
To accommodate exponential growth demands for larger and faster transistors, chip designers and manufacturers have constantly pushed the envelope of technological, physical, and design constraints. Various innovations and paradigm-defining ideas have taken shape as a result. The System-on-Chip (SOC) concept is one significant trend in this context. SOC can deliver the headroom necessary to continue pushing the envelope for at least the next five years.
According to a soon-to-be-released report from Business Communications Company, Inc. RGB-304 System-on-a-Chip: Technology, Markets, the worldwide SOC market is currently estimated at nearly $14.4 billion. Expected to grow at an AAGR (average annual growth rate) of 24.6%, this market will reach $43.2 billion by 2009. Unit growth will average 18.4% on average per year to reach 2.2 billion in 2009, and average unit prices will increase from a current level of $15.2 to $19.6 by the end of the forecast period.
It is crucial here to highlight some of our drivers for the immense growth projected for the SOC market, especially when compared to that of the overall IC market that is estimated to grow by less than 10%. Basically, SOC components are being propelled by the following three factors:
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SOC average selling prices are higher than standalone chips, as is to be expected due to integrated functionality
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SOC unit sales are definitely cannibalizing the consumption volume of the standalone micro-processor unit (MPU), application-specific integrated circuit (ASIC), field programmable gate array (FPGA), and digital signal processor (DSP). Therefore, there is the occurrence of SOC devices simultaneously penetrating into the existing markets of most other standalone chips
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The growth of SOC components has, in fact, led to the birth and popularity of new end-use devices that were hitherto deemed impossible to make or to market. Examples include ultra-small mobile gadgets of the future, ultra-wideband Internet, and certain automobile gadgetry. In essence, SOC has introduced new end-use markets.
These three drivers lead to a relatively high projected growth for SOCs, compared to the overall IC realm for the forecast period. The development of the SOC industry within the semiconductor industry is one of the most interesting subplots of the rapid innovation in the high-tech industry. As pressure continues to achieve higher levels of device integration while reducing cost, size and complexity, the issue of process innovation has become very significant. In addition, economic and market forces are fueling the market. This environment calls for an assessment of current market and technology trends as well as potential breakthroughs in the near- and long-term future.
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| Source: BCC, Inc. |
($ Millions)
RGB-304 System-on-a-Chip: Technology, Markets
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