Global Smartphone System on Chip (SoC) Market to Reach US$1.8 Billion by 2030
The global market for Smartphone System on Chip (SoC) estimated at US$662.3 Million in the year 2024, is expected to reach US$1.8 Billion by 2030, growing at a CAGR of 17.9% over the analysis period 2024-2030. Dual Core SoC, one of the segments analyzed in the report, is expected to record a 15.3% CAGR and reach US$750.0 Million by the end of the analysis period. Growth in the Quad Core SoC segment is estimated at 20.5% CAGR over the analysis period.
The U.S. Market is Estimated at US$174.1 Million While China is Forecast to Grow at 17.0% CAGR
The Smartphone System on Chip (SoC) market in the U.S. is estimated at US$174.1 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$275.4 Million by the year 2030 trailing a CAGR of 17.0% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 16.1% and 15.7% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 13.4% CAGR.
Global Smartphone System On Chip (SoC) Market - Key Trends & Drivers Summarized
What Makes SoCs the Technological Backbone of Modern Smartphones?
System on Chip (SoC) technology forms the central processing nucleus of modern smartphones by integrating multiple essential components-CPU, GPU, memory controller, modem, ISP, NPU, and more-onto a single silicon substrate. This high-density integration minimizes footprint, reduces power consumption, and significantly improves processing speed, making SoCs critical to the performance and efficiency of smartphones. Instead of using discrete chips for different functions, the SoC model allows for tighter interconnectivity, faster data exchange, and reduced latency, aligning perfectly with the compact and battery-constrained architecture of mobile devices.
Contemporary smartphone SoCs not only power general computing but also handle specialized tasks such as on-device AI inference, ultra-high-resolution image processing, 5G connectivity, and real-time gaming rendering. Major players in the market-including Qualcomm, Apple, MediaTek, and Samsung-continuously push SoC capabilities by adopting leading-edge process nodes, integrating more cores, and embedding dedicated accelerators. These chips are designed with application-specific requirements in mind, whether it-s flagship performance in premium devices or cost-efficiency in entry-level phones. As smartphones evolve into computational powerhouses, SoC designs are becoming increasingly complex and application-optimized.
Which Technology Innovations Are Reshaping Smartphone SoC Capabilities?
Cutting-edge process nodes and architecture innovation are primary drivers of SoC advancement. The shift from 7nm to 5nm and now 3nm manufacturing technology has allowed manufacturers to pack more transistors into smaller dies, increasing processing power while lowering thermal output. These nodes are enabling the development of octa-core or deca-core CPUs with heterogeneous configurations (e.g., big.LITTLE architecture), optimized for both high performance and power efficiency. AI engines within SoCs, typically represented by Neural Processing Units (NPUs), are now standard components for tasks such as voice recognition, scene detection, and language translation without cloud dependency.
Another major development is the integration of advanced GPUs capable of real-time ray tracing, high refresh rate display support, and advanced shading. These enhancements support console-grade mobile gaming and immersive multimedia experiences. Image Signal Processors (ISPs) are evolving to manage multi-lens camera arrays, 8K video recording, and computational photography techniques. ISPs now support real-time HDR, AI-based noise reduction, and facial recognition enhancements.
On the connectivity front, 5G modems-either integrated or discrete-have become essential for enabling sub-6GHz and mmWave bands in modern smartphones. Wi-Fi 6/6E and Bluetooth 5.3 modules embedded in SoCs support high-throughput, low-latency wireless communication. Power management units and security enclaves are being enhanced to enable secure biometric processing and energy-efficient operation. The role of SoCs is expanding beyond processing; they now manage end-to-end performance optimization across thermal, power, and connectivity domains.
Which Device Segments and Regions Are Fueling SoC Market Growth?
The primary demand for smartphone SoCs comes from high-performance and mid-range device segments, with entry-level smartphones also contributing significant volume. Flagship devices from brands like Apple, Samsung, and Xiaomi drive demand for premium SoCs with advanced fabrication, GPU/ISP enhancements, and 5G integration. Apple-s Bionic series, Qualcomm-s Snapdragon 8 Gen series, and Samsung-s Exynos 2200 represent the bleeding edge of this segment. Conversely, MediaTek-s Dimensity and Helio series cater to mid-range and budget devices with performance-efficient chips that support gaming and photography at lower power and cost levels.
Emerging markets such as India, Southeast Asia, and Africa are showing robust demand for mid- and low-end smartphones, fueling shipment volume for cost-effective SoCs. In these markets, MediaTek, UNISOC, and entry-tier Qualcomm chipsets dominate. Meanwhile, developed markets in North America, Europe, South Korea, and Japan are key adopters of high-performance smartphones that rely on advanced SoCs. The rising popularity of foldable smartphones and gaming-centric phones in China and South Korea is pushing demand for GPUs and thermal-efficient SoC designs.
Device differentiation is increasingly reliant on SoC performance, particularly for OEMs who lack proprietary chipsets. This has created a high-stakes market for SoC suppliers who are expected to deliver faster, more integrated, and application-specific silicon to device manufacturers operating under compressed development cycles. The evolution of extended reality (XR) devices and mobile-first AI workloads will only deepen the reliance on powerful smartphone SoCs across use cases.
What Drives the Expansion of the Smartphone SoC Market Globally?
The growth in the global smartphone SoC market is driven by several factors, including the surging demand for mobile AI capabilities, accelerated 5G rollouts, smartphone design convergence, and consumer demand for advanced imaging and gaming experiences. As users seek smoother multitasking, intelligent camera features, and real-time language processing on their devices, OEMs are turning to increasingly powerful SoCs that support these capabilities on-device. The integration of NPUs and ISP advancements are no longer luxury features-they are baseline requirements in competitive smartphones.
The global transition to 5G is another significant growth driver. Integrated 5G modems are becoming standard in mid- and high-end SoCs, reducing BOM (bill of materials) costs and improving power efficiency. Regions such as China, South Korea, the U.S., and parts of Europe have embraced 5G infrastructure aggressively, pushing OEMs to offer compatible phones even in sub-$300 segments. This fuels demand for SoCs that combine 5G, AI, imaging, and multimedia in increasingly compact packages.
Further, the adoption of ARM-based architectures, multi-core configurations, and AI-enablement is spurring innovation across both chip vendors and OEMs. Industry partnerships between foundries (like TSMC and Samsung), IP vendors (such as ARM and Imagination), and SoC brands are accelerating time-to-market. As fabrication and R&D costs rise, the market is witnessing a consolidation around few dominant players capable of sustained investment in next-gen architectures. These trends will continue to shape SoC evolution as mobile computing becomes ever more powerful, autonomous, and multifunctional.
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