Narrative: SoC Markets Q4 2024

Discover how the SoC market, valued at $354B in 2024, is set to surpass $500B by 2029, driven by AI, datacenter growth, and advanced IP design trends. Explore forecasts, CAGR insights, and geopolitical impacts.

The total SoC market was $354b in 2024, growing 24% year-over-year, with computing growing +52% owing to datacenter AI. We expect the total SoC market to grow 7% CAGR toward 2030 and cross the $500b mark by 2029. The main driver of the market is the integration of artificial intelligence accelerators and long-term trends toward more capable compute engines. As design efforts continue to lean toward smaller geometries, we expect the prevalence of IP blocks and software to increase, supporting a healthy silicon IP market growth above +18% CAGR to 2030, doubling the overall market value from 2025. A trade war would negatively affect most SoC end markets while accelerating regional decoupling, creating additional demand for new local designs and derivatives (e.g., China-for-China).