Enjoy complimentary customisation on priority with our Enterprise License!
The system-on-chip (SOC) test equipment market size is estimated to grow at a CAGR of 9.43% between 2023 and 2028. The market size is forecast to increase by USD 2.26 billion. The growth of the market depends on several factors, including the increasing demand for SoCs due to their benefits, the growth of fabless companies causing a rise in demand from the entire manufacturing value chain, and the shortening of product life cycle. SoC is an integrated circuit used in consumer electronics such as smartphones and smartwatches. It is also used in hardware deployed in IT and telecommunication infrastructure, automotive systems, and others such as STBs and PCs. SoC is similar to a printed circuit board (PCB) on which many chips and components are assembled. The only difference between a SoC and a PCB is that the former enables the integration of several components on a single chip.
The report includes a comprehensive outlook on the System-on-Chip (SOC) Test Equipment Market, offering forecasts for the industry segmented by Application, which comprises consumer electronics, IT and telecommunication, automotive, and others. Additionally, it categorizes End-user into integrated device manufacturer (IDM), foundry, and design hous, and covers Geography regions, including APAC, North America, Europe, South America, and Middle East and Africa. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
For More Highlights About this Report, Download Free Sample in a Minute
The shortening of the product life cycle is a key factor driving market growth. The PLC of an IC has been declining rapidly due to semiconductor companies continually improving chip performance by packing more components onto a single chip. This increase in complexity is especially notable in Mixed Signal SoCs. As a result, old SoC test equipment becomes obsolete for cost-effective testing of these advanced SoCs.
Consequently, the demand for Automated Test Equipment that can handle complex SoCs cost-effectively is rising among SoC manufacturers. Therefore, a consistent decline in the lifecycle of SoCs is increasing the demand for such advanced test equipment, driving market growth.
The risk of trade wars that adversely affect demand for electronics is the primary trend in the market. The US and China are currently engaged in a trade war that has the potential to increase the prices of electronic products, including telecommunication equipment for 5G networks and smartphones. One of the biggest reasons for this ongoing trade war is a very high trade deficit that the US runs with China. This is expected to increase the prices of SoC devices.
Besides, although the US designs most of the SoCs produced globally, most of the manufacturing is sent to OSAT (Outsourced Semiconductor Assembly and Test) service providers in China for assembly, testing, and packaging. Thus, a significant portion of electronics equipment manufacturing in the US is now subject to tariffs, potentially impacting market growth. This situation could lead to declining consumption of electronic equipment in the US, affecting various sectors including the demand for cable testers. As uncertainties surrounding tariffs and trade policies persist, industries reliant on electronic equipment may experience fluctuations in demand and investment, influencing the overall market dynamics during the forecast period. These factors underscore the interconnected nature of global supply chains and their implications for market stability and growth in sectors such as cable testers and electronic testing equipment.
SoC applications limited to compact or mobile computing devices is a challenge that affects market growth. SoCs are suitable for mobile computing devices such as smartphones and tablets. In these devices, energy efficiency is an essential requirement than processing capabilities to extract maximum run time from a given battery. However, desktop computers, which are connected to grid power and used for diverse applications that require very large RAM and add-on features such as GPU for gaming applications, do not rely on SoCs.
Likewise, most of the servers in a data center continue to use central processing units (CPUs) as opposed to SoC. This is because SoCs do not offer the flexibility of upgrading them as CPUs do. This limits the number of applications of SoCs. This will hinder the growth of the market during the forecast period.
The market share growth by the consumer electronics segment will be significant during the forecast period. Most consumer electronics are now offered with integrated batteries. The use of SoC in consumer electronics reduces power consumption and increases run time on single charges. In addition, SoC also helps in the miniaturization of consumer electronic products. Thus, the adoption of SoC in consumer electronic devices is increasing. This is driving the demand for SoC test equipment.
Get a glance at the market contribution of various segments Download the PDF Sample
The consumer electronics segment showed a gradual increase in the market share of USD 1.18 billion in 2018. The rising application of the IoT in home appliances is expected to change the dynamics of the consumer electronics industry. Manufacturers are focusing on integrating the IoT with consumer electronics such as televisions, refrigerators, and other home appliances. Furthermore, the increasing penetration of smart technologies and the growing trend of smart homes are expected to propel the demand for consumer electronics. This will provide a high growth opportunity for the market players of SoC test equipment in the consumer electronics market segment during the forecast period.
The Integrated Devices Manufacturer (IDM) segment plays an important role in the global System-on-Chip (SOC) test equipment market. SoC test equipment is essential in the semiconductor industry for ensuring the quality and reliability of SoC devices during the manufacturing process. Companies that develop, produce, and sell their own semiconductor chips instead of contracting out these tasks to outside foundries are referred to as IDMs. Furthermore, the significance of SoC testing for IDM enterprises is further enhanced by the advent of cutting-edge technologies such as edge computing, 5G, and artificial intelligence. Therefore, the increased adoption of such technologies will drive the growth of the Integrated device manufacturer (IDM) segment in the market during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
APAC is estimated to contribute 71% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The demand for SoC test equipment in APAC is expected to be driven by increasing investments in the telecommunication network infrastructure, rising demand for mobile communication devices, and increasing deployment of advanced electronics by automotive original equipment manufacturers (OEMs). In addition, APAC is recording significant growth in the implementation of 4G/5G networks. This is owing to the significant growth potential of 4G and 5G technologies in emerging economies such as Malaysia, Indonesia, and India.
Another major factor contributing to the growth of the market in APAC is the presence of a substantial number of consumer electronic device OEMs. In APAC, countries such as China, Japan, South Korea, and Taiwan are the major hubs of electronic device OEMs such as SAMSUNG ELECTRONICS, Sony, Acer Inc., and others. Low labor costs and the availability of raw materials offer the market players an advantage of manufacturing the same products at a relatively lower price than in the other regions. Hence, such factors are expected to drive market growth in this region during the forecast period.
The System-on-Chip (SOC) Test Equipment Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global System-on-Chip (SOC) Test Equipment Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The system-on-chip (SOC) test equipment market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028
System-on-Chip (SOC) Test Equipment Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.43% |
Market Growth 2024-2028 |
USD 2.26 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
9.01 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 71% |
Key countries |
US, China, Japan, Germany, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advanced Micro Devices Inc., Advantest Corp., Aeris Communications Inc., Arrow Electronics Inc., Astronics Corp., Broadcom Inc., Chroma ATE Inc., Cohu Inc., Hangzhou Changchuan Technology Co Ltd., Intel Corp., Marvin Test Solutions Inc., Microchip Technology Inc., Qualcomm Inc., Samsung Electronics Co. Ltd., STMicroelectronics International N.V., Tektronix Inc., Telefonaktiebolaget LM Ericsson, Teradyne Inc., Texas Instruments Inc., and Wirepas Ltd |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.