The chipset market, which was pegged at $45.89 billion in 2016, will grow at 8.4 percent CAGR from 2017 to 2025 to $89.03 billion by 2025, said Transparency Market Research.

Qualcomm, the US-based technology major, has 38.6 percent share in the global System on Chip (SoC) market. Top three players collectively account for 68 percent of the global chipset market in 2016.

ALSO READ: Chipset market size forecast

Mixed-signal SoCs is the leading contributor of revenue to the global market, accounting for nearly 44 percent share in 2016. The segment is expected to remain the leading segment throughout the forecast period, growing at 9 percent CAGR from 2017 to 2025.

The Asia Pacific market for SoCs accounted for more than 45 percent of the global market in 2016. Factors such as the increased demand for smart electronic devices and the increasing adoption of IoT-based technologies across a number of industry verticals are some of the key growth factors for the growth of the SoC market in Asia Pacific.

The lowering of costs per function of ICs is one of the drivers of the SoC market, further enhancing the applications of SoCs across different industry verticals. Design changes in microcontrollers and microprocessors to embed different patterns within a single chip are key to the development of the global SoC market in the past few years.

With growing advancement in the fabrication and lithography process along with design changes in nodes due to multiple patterning results in increase in software development costs as well – posing challenges to the growth in SoC market.

The telecom research report said overlapping of functionalities resulting from changes in consumer demands could also have a negative effect on the overall growth prospects of the global SoC market in the next few years.