System on Module Boards Market Size, Share, Growth, and Industry Analysis, By Types (ARM, X86, Power PC, Others) , Applications (Defense and Aerospace, Communications, Medical, Automations and Control, Automotive and Transport, Others) and Regional Insights and Forecast to 2033

System on Module Boards market Size

The global System on Module Boards market was valued at USD 1,809.36 million in 2024 and is projected to grow to USD 1,867.26 million by 2025, reaching USD 2,394.91 million by 2033, with a CAGR of 3.2% during the forecast period [2025–2033].

The US System on Module Boards market is set to play a significant role in this growth, driven by rising demand for compact and efficient embedded computing solutions across industries such as automotive, healthcare, and industrial automation. Technological advancements and increasing IoT integration are expected to boost market expansion in the US region.

The System on Module (SoM) boards market is experiencing rapid growth, fueled by increased adoption across diverse industries. Over 60% of its applications are driven by sectors like industrial automation, automotive, and healthcare. The growing integration of IoT and AI technologies has further expanded its use in edge computing and smart devices.

The market is characterized by a shift towards more compact, energy-efficient, and high-performance modules. Manufacturers are increasingly focusing on modular designs, with more than 30% of new product developments being tailored to meet specific application requirements, ensuring scalability and reduced time-to-market.

System on Module Boards Market Trends

The System on Module (SoM) boards market is evolving rapidly, with several trends shaping its growth trajectory. A significant trend is the increasing adoption of SoM boards in IoT ecosystems, which accounts for over 40% of new deployments. These modules are preferred for their compact size and power efficiency, making them ideal for smart cities and industrial automation projects. Edge computing applications are projected to grow by more than 25% annually, driving demand for high-performance modules capable of processing real-time data.

Another notable trend is the integration of AI and machine learning capabilities into SoM boards. Approximately 35% of manufacturers are now embedding AI accelerators to cater to emerging needs in robotics, autonomous vehicles, and advanced medical diagnostics. Additionally, open-source hardware platforms have seen a surge in adoption, with nearly 20% of developers opting for customizable SoM designs to meet specific application needs.

The automotive sector contributes significantly to this trend, with over 15% of SoM usage focused on advanced driver assistance systems (ADAS) and in-vehicle infotainment. Furthermore, sustainability is becoming a key driver, as low-power SoM boards designed for renewable energy applications are witnessing a growth rate of over 30%, emphasizing energy efficiency and environmental impact.

System on Module Boards Market Dynamics

DRIVER

" Increasing Demand for Industrial Automation"

The adoption of industrial automation is propelling the System on Module (SoM) boards market, accounting for over 50% of applications in smart factories. With industrial IoT installations growing by more than 15% annually, SoM boards have become essential for enhancing productivity and operational efficiency. The healthcare sector also contributes significantly, with over 25% of its demand coming from wearable devices and diagnostic equipment. These trends reflect a broader shift towards compact, high-performance solutions to meet the evolving needs of automation-driven industries.

RESTRAINT

"Complex Integration and High Development Costs"

Complexity in integration and the high costs of development remain significant barriers in the SoM boards market. Around 40% of end-users face challenges in customizing and scaling modules to meet specific needs. This complexity often increases time-to-market by more than 20%, discouraging adoption among small and medium-sized enterprises (SMEs). Furthermore, nearly 30% of manufacturers report difficulties in ensuring compatibility across diverse application areas, increasing the total cost of ownership and reducing market penetration.

OPPORTUNITY

" Expansion of Smart City Initiatives"

Smart city initiatives offer significant growth opportunities, with over 35% of global IoT spending directed toward urban infrastructure. The integration of System on Module (SoM) boards into smart grids, transportation, and public safety systems is driving demand for scalable and energy-efficient solutions. Additionally, smart city projects are expanding at a rate of over 20% annually, creating a lucrative market for advanced SoM boards. Manufacturers focusing on developing low-power, modular designs can capitalize on these opportunities to cater to the growing needs of urbanization and digital transformation.

CHALLENGE

"Rapid Technological Advancements"

Adapting to rapid technological advancements poses a challenge for the System on Module (SoM) boards market. Over 30% of manufacturers report difficulties in keeping pace with new processor and interface technologies. This challenge is compounded by a lack of standardization, with over 25% of users citing compatibility issues as a major concern. Additionally, frequent design updates to meet diverse industry requirements result in increased development cycles, extending product launches by more than 15%. These challenges highlight the need for streamlined innovation and improved industry-wide standards to ensure sustained market growth.

Segmentation Analysis

The System on Module (SoM) boards market is segmented based on type and application, catering to a wide range of industries. By type, ARM modules dominate, comprising over 40% of the market, followed by X86 at 30%, PowerPC at 15%, and others at 15%. By application, automation and control account for more than 30% of the demand, medical applications contribute over 20%, while automotive and transportation represent approximately 25%. Defense and aerospace applications make up 20% of the market, with communications adding an additional 25%. This segmentation highlights the diverse adoption and adaptability of SoM boards across industries.

By Type

• ARM: ARM-based System on Module (SoM) boards lead the market with over 40% share, driven by their energy efficiency and versatility. These modules are extensively adopted in IoT devices and edge computing solutions, where they support more than 35% of applications. Their integration in smart city projects, growing at a rate of over 20% annually, further solidifies their dominance. Industries such as healthcare and automation heavily rely on ARM modules due to their low power consumption and scalability.
• X86: X86-based SoM boards contribute 30% of the market, favored for their robust processing power and compatibility with legacy systems. Over 25% of automation and control systems utilize X86 modules to support high-speed operations. Additionally, these boards are extensively used in automotive applications, representing more than 20% of the X86 segment's demand. Their adoption in communication infrastructure continues to grow at a rate exceeding 15% annually, showcasing their adaptability to complex applications.
• PowerPC: PowerPC-based modules hold 15% of the market, with strong demand from defense and aerospace applications. Over 40% of their adoption is concentrated in mission-critical systems like avionics and satellite communications. The industrial sector also uses PowerPC boards, accounting for approximately 10% of applications requiring real-time control. Their reliability in harsh environments ensures sustained usage, particularly in highly specialized applications.
• Others: The "others" category comprises emerging and custom solutions, contributing 15% to the market. Over 10% of these modules are tailored for renewable energy applications, where their use is growing at a rate of over 15% annually. Specialized robotics and unique IoT applications represent more than 5% of the demand. This segment's flexibility in addressing niche challenges ensures steady growth and innovation opportunities.

By Application

• Defense and Aerospace: The defense and aerospace sector accounts for 20% of the System on Module (SoM) boards market. These boards are critical in avionics and radar systems, where they support over 30% of operations requiring rugged, real-time processing. Satellite communications systems use SoM boards in more than 25% of their configurations. With government investments growing annually by over 10%, the adoption of SoM boards in this sector continues to expand.
• Communications: Communications applications represent 25% of the market, with SoM boards integral to over 40% of 5G and IoT network deployments. Their role in signal processing and network monitoring systems drives annual growth exceeding 15%. The increasing adoption in base stations and other infrastructure systems further cements their importance, with over 20% of communication installations relying on these modules for scalability and efficiency.
• Medical: Medical applications make up over 20% of SoM board usage, with diagnostic devices and wearable health monitors accounting for more than 35% of this demand. Imaging systems utilize these boards in over 25% of their configurations. The healthcare industry is adopting SoM boards at an annual rate of over 15%, driven by the need for compact, high-performance computing in advanced medical equipment.
• Automations and Control: Automation and control systems contribute 30% to the market, with over 40% of deployments focused on industrial IoT and robotics. Smart home solutions represent more than 20% of this segment's usage. The adoption rate in industrial applications grows annually by over 20%, highlighting the critical role of SoM boards in real-time monitoring and operational efficiency across automation technologies.
• Automotive and Transport: The automotive and transport sector accounts for approximately 25% of SoM board applications. Over 30% of ADAS and infotainment systems use these modules, while vehicle connectivity solutions account for more than 20%. Autonomous vehicle projects are driving annual adoption growth of over 20%, emphasizing the increasing reliance on SoM boards to enhance safety, efficiency, and functionality in transportation systems.

System on Module Boards Market Regional Outlook 

The System on Module (SoM) boards market exhibits regional diversity in growth trends. North America leads with over 35% of global adoption, supported by advancements in healthcare and automotive industries. Europe contributes more than 25%, driven by automation and renewable energy projects. Asia-Pacific, with over 30% market share, experiences the fastest growth due to manufacturing and smart city initiatives. The Middle East & Africa region accounts for approximately 10% of the market, with energy and communication sectors driving demand. These regional variations underline the dynamic nature of the SoM boards market and its alignment with regional industry trends.

North America 

North America holds over 35% of the System on Module (SoM) boards market, with over 40% of healthcare applications relying on these modules. The automotive sector represents more than 25% of regional usage, particularly in ADAS and infotainment systems. IoT deployments, growing annually by over 20%, further fuel demand. The region's emphasis on innovation and advanced technology integration ensures its leadership in the SoM boards market.

Europe 

Europe accounts for over 25% of the market, with automation applications making up more than 30% of demand. Renewable energy projects, growing at a rate exceeding 15% annually, utilize SoM boards in over 25% of their configurations. The automotive industry contributes more than 20%, with a strong focus on ADAS and connectivity solutions. Europe's emphasis on sustainability and technological advancement drives continued growth.

Asia-Pacific 

Asia-Pacific represents over 30% of the global market, with more than 40% of demand stemming from manufacturing and automation applications. Smart city projects account for over 25% of the region’s SoM board deployments, growing annually by more than 20%. The automotive sector uses SoM boards in over 20% of configurations, particularly in autonomous and electric vehicles. These trends highlight Asia-Pacific’s rapid adoption of advanced technologies.

Middle East & Africa 

The Middle East & Africa region holds approximately 10% of the market, with energy sector applications representing over 40% of demand. Smart grid projects are growing annually by over 15%, driving the adoption of SoM boards. Communication infrastructure uses these modules in more than 20% of configurations. Gradual adoption of IoT and automation technologies highlights the region’s potential for sustained growth.

LIST OF KEY SYSTEM ON MODULE BOARDS MARKET COMPANIES PROFILED

• Advantech
• Kontron
• Artesyn Embedded
• MSC Technologies (Avnet)
• Congatec
• ADLink
• DFI
• Portwell
• Axiomtek
• Eurotech
• Phytec
• Avalue Technology
• Digi International
• IEI
• AAEON
• Fastwel
• Radisys (Reliance Industries)
• Toradex
• ASRock
• SECO srl
• Technexion

Top Companies with Highest Market Share:

Advantech: Over 20% of global market share.

Kontron: Over 15% of global market share.

Recent Developments by Manufacturers in the System on Module Boards Market 

In 2023 and 2024, several manufacturers made significant advancements in the System on Module (SoM) boards market. For example, more than 25% of new products launched during this period focused on high-performance computing and low-power solutions to cater to IoT and industrial automation.

Companies like Advantech and Kontron invested in enhancing modular designs, with over 30% of their R&D efforts directed toward AI and edge computing capabilities.

Additionally, over 20% of the market leaders introduced SoM boards with integrated security features, responding to the rising need for secure embedded systems. These developments underscore the market's focus on innovation and adaptability.

New Product Development 

The System on Module (SoM) boards market witnessed substantial new product developments in 2023 and 2024, with more than 40% of these products targeting IoT and smart city applications. ARM-based SoM boards accounted for over 50% of new launches due to their energy efficiency and versatility. Manufacturers introduced products with integrated AI accelerators, with more than 20% of new boards focusing on edge AI applications.

In 2024, over 30% of new SoM boards were designed specifically for medical applications, enhancing diagnostic devices and wearable health monitors. Automotive-focused SoM boards accounted for more than 25% of new developments, addressing the rising demand for ADAS and infotainment systems. Additionally, manufacturers emphasized modularity, with over 15% of new products featuring customizable options to cater to diverse industrial needs.

The introduction of PowerPC-based modules, comprising more than 10% of new launches, highlighted the continued demand for rugged and reliable solutions in defense and aerospace sectors. This surge in product innovation aligns with the growing focus on compact, high-performance computing solutions across various industries.

Investment Analysis and Opportunities 

Investment in the System on Module (SoM) boards market is accelerating, with over 25% of manufacturers increasing their R&D budgets in 2023 and 2024. Focus areas include developing AI-integrated modules and energy-efficient designs, which accounted for more than 30% of R&D spending. The IoT sector represents a key investment area, with over 20% of market growth driven by IoT-enabled applications such as smart cities and industrial automation.

Asia-Pacific attracted over 35% of global investments, reflecting its rapid industrialization and adoption of smart manufacturing technologies. Europe and North America collectively accounted for more than 45% of investment activities, focusing on renewable energy and automotive advancements. The defense sector, contributing over 15% of market growth, continues to see investments in ruggedized SoM boards for mission-critical applications.

Opportunities abound in the healthcare industry, where more than 20% of investments target medical-grade SoM boards for diagnostic equipment and wearables. The rising emphasis on cybersecurity is also creating demand for secure SoM solutions, representing more than 10% of investment priorities. Overall, these trends showcase the market's dynamic nature and the broad opportunities for innovation and growth.

Report Coverage of System on Module Boards Market 

The System on Module (SoM) Boards Market report provides comprehensive insights into key market segments, regional dynamics, and competitive landscapes. The report highlights the dominant role of ARM-based modules, comprising over 40% of the market, followed by X86 and PowerPC at 30% and 15%, respectively. Application-wise, automation and control lead with more than 30% of demand, while medical and automotive sectors each contribute over 20%.

The regional analysis emphasizes North America's dominance, with over 35% of global adoption, and Asia-Pacific's rapid growth, accounting for more than 30% of the market. Europe and the Middle East & Africa together represent over 25% of market activities, reflecting the global expansion of SoM applications.

The report also discusses technological advancements, with more than 20% of new developments focused on AI and machine learning capabilities. The rising integration of SoM boards in smart cities and renewable energy projects highlights the market's alignment with global sustainability goals. Competitive analysis reveals that leading companies like Advantech and Kontron collectively hold over 35% of market share, showcasing their influence in driving innovation and setting industry standards.