Europe System on Module Market share was valued at over USD 600 million in 2019 and is expected to grow at a CAGR of around 10%.
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Europe market is experiencing rapid growth owing to increasing development in connected cars and self-driving vehicles in the region. According to a November 2018 press release by the European Patent Office, the number of patent applications related to autonomous vehicles has grown 20 times faster than other technologies in Europe. This will significantly increase the demand for ADAS, advanced telematics, and vehicle-to-everything (V2X) communication systems for autonomous vehicles in the region. These advanced systems are equipped with system on module devices, adding opportunities for market growth. Additionally, surging demand for smart traffic management in the Europe transportation sector will further fuel the market.
The arm architecture segment is anticipated to grow at a CAGR of around 11.5% owing to rising demand for high-performance computing processors integrated with supercomputers, data centers, and others. The demand for ARM-based SoM is increasing as it is less complex compared to other architectures. It also offers a single cycle computing facility with reduced instruction sets. ARM architecture-based SoM circuit provides multi-core processing and low power consumption with enhanced speed and battery life, which is highly suitable for applications in IoT devices. The rising uptake of ARM-based system-on-modules in IoT solutions will fuel the market growth. According to the GSM Association, in 2019, the total number of IoT connections in Europe was 2.4 billion, which is projected to surpass the 4.5 billion mark by 2025.
The medical application segment held a market share of over 10% in 2019 and will grow at a CAGR of over 6.5% during the forecast timeline. Growth is majorly attributed to the rising adoption of system on modules in wearable medical devices. Wearable medical devices, such as pulse-oximeters, optical heart rate monitors, blood glucose monitors, and fit bits, are integrated with system on modules. The adoption of AI technology in smart medical devices will further fuel market growth. AI-based therapeutic and diagnostic devices help in remote patient monitoring and real-time diagnosis applications. Supportive government initiatives to increase the deployment of AI-based medical equipment in Europe will further accelerate market growth. For instance, in November 2020, the UK Government announced funding of around USD 24.4 million to boost R&D activities in the fields of AI-based wearable medical devices.
Germany will grow at a CAGR of 12.5% in the Europe market over the forecast period. The growth is attributed to proactive investments by Germany-based system on module manufacturers, such as Phytec, emtrion GmbH, NXP Semiconductors, and Kontron, among others, for the development of technically advanced products. For instance, in February 2020, Kontron launched the new SL I/MX8M, a mini System on Module (SoM) device based on the Linux board that offers a miniaturized footprint, higher performance, and advanced energy optimization suitable for low-power smart home devices. Similar initiatives by German market players will accelerate the market growth over the forecast period.
Key players operating in the Europe system on module industry are Toradex Systems, Kontron S&T, Eurotech, and EMAC, among others. These players are extensively focusing on new product innovation to stay competitive in the market. For instance, in September 2020, Eurotech launched an embedded board and system for the industrial sector, providing edge computing and IoT solutions. These solutions cater to products from compact high-performance embedded computers to edge servers and IoT gateways in combination with software framework.