System-on-Chip Design Service Market to Surge Amid Rising Automotive Demand
London, Wednesday, 17 September 2025.
Projected to grow from $3.76 billion in 2024 to $5.5 billion by 2031, the SoC design service market is fueled by the demand for integrated solutions in automotive and consumer electronics.
Expanding Market Dynamics
The system-on-chip (SoC) design service market is anticipated to grow at a compound annual growth rate (CAGR) of 6.4% from 2024 to 2031, underscoring the critical role of integrated semiconductor solutions in modern applications [1]. This growth trajectory reflects a broader industry trend toward compact, power-efficient designs, which are essential for sectors like automotive and consumer electronics [1].
Driving Forces Behind Growth
Key drivers of the market expansion include the rising demand for digital and mixed-signal SoC designs that enable high-performance, power-efficient integration of various functionalities on a single chip [1]. The automotive sector, in particular, is a significant contributor due to its increasing reliance on electronics for advanced driver assistance systems (ADAS), infotainment, and electric vehicle control units [1].
European Market Implications
Europe has emerged as a pivotal region in the SoC design service market, primarily due to its investments in automotive and consumer electronics technologies [1]. Companies like Dream Chip Technologies are leading the charge by advancing functional safety and performance in automotive imaging solutions through strategic collaborations [2]. This regional focus not only enhances Europe’s competitiveness but also aligns with its broader technological goals.
Actionable Insights for Decision-Makers
For companies involved in the SoC design service market, there are substantial opportunities to leverage IP reuse, automation, and deep industry expertise to offer cost-effective and rapid development solutions [1]. Emphasizing the development of application-specific semiconductor solutions can cater to the unique needs of automotive and consumer electronics, positioning companies to capitalize on the projected market growth. Additionally, engaging in strategic partnerships can enhance capabilities and expand market reach, as demonstrated by collaborations like that of proteanTecs and Dream Chip Technologies [2].