Global Micro System-on-Module (SOM) Market Size, Share, Growth Analysis Report - Forecast 2034

Micro System-on-Module (SOM) Market: Industry Perspective

The global micro system-on-module (SOM) market size was worth around USD 1.15 Billion in 2024 and is predicted to grow to around USD 2.96 Billion by 2034 with a compound annual growth rate (CAGR) of roughly 9.86% between 2025 and 2034. The report analyzes the global micro system-on-module (SOM) market's drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the micro system-on-module (SOM) industry.

Request Free Sample

Micro System-on-Module (SOM) Market: Overview

A micro system-on-module (SOM) is an integral part of the larger family of modular embedded computing solutions. The typical dimensions of micro SOM range from 25mm x 25mm to 30mm x 40mm while being 3.5mm in height. In other words, they can be called the compact version of the more prominently known SOM that is responsible for providing core units of all forms of the embedded processing system that includes memory blocks, communication interfaces, and processor cores. All of these components are installed on a single unit of production-ready printed circuit board or PCB.

SOMs have become extremely popular in recent times and are used extensively in applications such as security cameras and robots owing to the modular approach adopted by system-on-modules for functional purposes. Furthermore, the micro version of SOM which promotes reduced power usage has shown excellent suitability for modern embedded systems including wearables and the Internet of Things (IoT) which in turn is expected to help the market for micro SOM witness higher growth during the forecast period. While the growth trajectory for the global micro system-on-module market looks promising it will be subject to certain growth restrictions and challenges in the coming years.

Key Insights

• As per the analysis shared by our research analyst, the global micro system-on-module (SOM) market is estimated to grow annually at a CAGR of around 9.86% over the forecast period (2025-2034).
• Regarding revenue, the global micro system-on-module (SOM) market size was valued at around USD 1.15 Billion in 2024 and is projected to reach USD 2.96 Billion by 2034.
• The micro system-on-module (SOM) market is projected to grow at a significant rate due to rising demand for compact and efficient embedded systems, growth in IoT and AI applications, increasing adoption in industrial automation, and advancements in edge computing technologies.
• Based on End-User, the Robotics segment is expected to lead the global market.
• On the basis of Application, the Medical Devices segment is growing at a high rate and will continue to dominate the global market.
• Based on region, North America is predicted to dominate the global market during the forecast period.

Request Free Sample

Micro System-on-Module (SOM) Market: Growth Drivers

Increasing industrial automation to push higher growth in the market

The global micro system-on-module (SOM) is expected to register steady growth propelled by the increasing demand and need for industrial automation. This trend includes the use of novel robotics and computer software for the ultimate control of processes and machinery. Industrial automation primarily focuses on aspects of businesses such as quality control, manufacturing, and material handling. There are several advantages of adopting industrial automation. Some of them include achieving higher flexibility in terms of the production process, greater productivity, cost reduction, excellent safety, and enhanced human capacity. Studies indicate that investing in automation can help companies improve productivity by over 400%. It can also translate into reduced costs by nearly 79%.

In addition to this, the ongoing changes and recent trends associated with industrial automation are expected to shape the demand for technologies that promote automation. For instance, the extensive use of virtual reality (VR) and augmented reality (AR) not only in the field of entertainment but other industries including healthcare may contribute to a higher global market growth rate. Market research suggests that AR and VR in the healthcare industry are expected to become a USD 18 billion industry by 2032.

Growth in smart farming to contribute significantly toward the market growth rate

Smart farming refers to the application of advanced technology infrastructure in the agriculture industry. It deals with systems such as IoT, cloud, and big data to name a few. In June 2023, Sweden and India collaborated to launch ‘Smart Farm’, a solar-powered unit meant for small-hold farmers. It encourages food producers to use sustainable food development systems. The facility is home to some of the most advanced technologies. Moreover, rising private investments in smart farming coupled with a rise in government support could trigger higher consumption of micro SOM during the projection period.

Key Growth Drivers

The Micro System-on-Module (SOM) market is propelled by accelerating adoption of edge computing and IoT across industries that demand compact, power-efficient compute at the sensor or gateway level. Advances in semiconductor process nodes and low-power architectures enable high performance in smaller footprints, making micro SOMs attractive for wearables, industrial sensors, robotics, and smart home devices. Growing use of AI/ML inferencing at the edge, expansion of 5G connectivity, and the need for rapid time-to-market (using prevalidated modules rather than full custom SoCs) further drive demand. Additionally, rising investments in automation, smart manufacturing, and medical electronics create recurring requirements for flexible, modular compute building blocks.

Restraints

Market growth is constrained by thermal and power management challenges inherent to packing high performance into very small modules, which can limit sustained workloads or require costly cooling and design tradeoffs. Fragmentation of form-factors and interfaces across vendors increases design complexity for OEMs and lengthens validation cycles. Supply chain volatility for critical components (especially advanced SoCs, memory, and passive parts) can hamper production and lead times. For some applications, the perceived premium of pre-qualified micro SOMs versus commodity MCUs or custom SoCs can slow adoption where cost is the primary constraint.

Opportunities

Significant opportunities lie in domain-specific modules optimized for AI, vision, and secure connectivity—enabling turnkey edge AI appliances, predictive maintenance nodes in Industry 4.0, and advanced medical/diagnostic wearables. Growing demand for ultra-compact, certified modules opens avenues in regulated markets (medical, automotive) where suppliers can offer pre-validated safety and security stacks. Ecosystem plays—software platforms, reference designs, and managed lifecycle services—allow vendors to upsell higher-margin offerings and shorten customer development time. Expansion into emerging markets and low-power-first applications (battery-operated sensors, asset trackers) also presents sizable greenfield growth.

Challenges

Key challenges include ensuring robust hardware-and-software supply continuity and long-term lifecycle support (critical for industrial and medical customers who expect multi-year availability). Security and trustworthiness at the module level—secure boot, trusted execution environments, and secure update mechanisms—are nonnegotiable yet technically demanding to implement across product lines. Lack of universal standards for connectors, pinouts, and software abstraction layers complicates interoperability and can lock customers into specific suppliers. Finally, recruiting and retaining engineers with combined expertise in SoC integration, thermal design, embedded Linux/RTOS, and security remains a bottleneck for smaller vendors trying to scale.

Micro System-on-Module (SOM) Market: Segmentation

The global micro system-on-module (SOM) market is segmented based on end-user, application, and region.

Based on end-user, the micro system-on-module industry  segments are robotics, automotive, industrial automation, medical, aerospace, and others. In 2022, the highest growth was observed in the automotive segment. The industry deals with all operational aspects including designing and manufacturing of motor vehicles. The growing demand for connected vehicles allowed higher consumption of micro SOM in the automotive industry. The rising demand for affordable vehicles propelled by the growing sale of electric vehicles (EVs) is important for segmental expansion. More than 1 million EVs were sold in India in fiscal year 2023. Industrial automation is projected to generate significant revenue driven by surging demand for automation in industrial units.

Based on application, the micro system-on-module industry  is divided into medical devices, blade servers, network appliances, Internet of Things, data acquisition, and others. In 2022, the Internet of Things dominated the global market growth. IoT deals with a large network of things or physical objects embedded with software, sensors, and other systems. In 2022, the global IoT market was valued at more than USD 322 billion and by 2030 it is expected to grow at a CAGR of more than 15% as IoT continues to find greater application in end-user industries such as transportation, agriculture, retail, government, health care, and banking services. Blade servers are another set of crucial segments for the micro SOM industry growth as complex computing environments are in demand.

Micro System-on-Module (SOM) Market: Report Scope

Micro System-on-Module (SOM) Market: Regional Analysis

Asia-Pacific to dominate market growth rate during the projection period

Research indicates that the global micro system-on-module (SOM) market will be dominated by Asia-Pacific by 2032. The growth is expected to be led by countries such as China, Taiwan, India, Japan, and other nations. Taiwan is currently the world’s leading provider of all forms of semiconductors. In 2024, the country witnessed an increase of nearly 27% in terms of electronic components as compared to 2023. Additionally, China is the second-highest semiconductor manufacturer. The increasing population, growing demand and use of electronic devices, and regional dominance of China as a manufacturing hub for all electronic and non-electronic goods are some of the crucial reasons contributing to higher growth in the Asia-Pacific region.

Moreover, India has increased its spending to promote the regional semiconductor industry. In July 2023, the country witnessed an announcement of investment worth USD 800 million by Micron Technology. The funds will be used to construct a novel semiconductor assembly and test unit in Gujarat state of India.

Micro System-on-Module (SOM) Market: Competitive Analysis

The report provides a company market share analysis to give a broader overview of the key market players. In addition, the report also covers key strategic developments of the market, including acquisitions & mergers, new product launches, agreements, partnerships, collaborations & joint ventures, research & development, and regional expansion of major participants involved in the micro system-on-module (SOM) market on a global and regional basis.

The global micro system-on-module (SOM) market is dominated by players like:

• ADL Embedded Solutions Inc
• Atmel Corporation
• National Instruments Corporation
• Toradex AG
• SolidRun Ltd.
• MEN Micro Inc.
• VIA Technologies Inc.
• Infineon Technology
• Intel Corporation
• Texas Instruments
• Technique Innovator Inc.
• Advantech Sealevel Systems

The global micro system-on-module (SOM) market is segmented as follows;

By End-User

• Robotics
• Automotive
• Industrial Automation
• Medical
• Aerospace
• Others

By Application

• Medical Devices
• Blade Servers
• Network Appliances
• Internet of Things
• Data Acquisition
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America