System on Module Boards Market Size, Share, Growth and Industry Analysis, By Types (ARM, X86, Power PC, Others), By Applications (Defense and Aerospace, Communications, Medical, Automations and Control, Automotive and Transport, Others), Regional Insights and Forecast to 2035

System on Module Boards Market Size

The Global System on Module Boards Market was valued at USD 1.87 Billion in 2025 and is projected to reach USD 1.93 Billion in 2026, expanding further to USD 2.57 Billion by 2035. The market is anticipated to exhibit a CAGR of 3.2% during the forecast period from 2026 to 2035. Growth in this sector is largely attributed to the rising integration of embedded systems in automotive, medical, and industrial automation applications. Over 60% of demand is generated by industrial and IoT-based applications, while approximately 35% of system on module boards are being developed for edge computing and AI-enabled devices.

The U.S. System on Module Boards Market continues to expand steadily, driven by increasing investments in industrial automation and defense applications. Nearly 45% of the country’s production in embedded computing is directed toward high-performance industrial applications, while 30% supports the automotive and medical device sectors. The demand for energy-efficient and customizable module boards has grown by over 25%, driven by smart manufacturing and IoT integration across enterprises. The focus on sustainable, scalable, and AI-ready modules further strengthens U.S. leadership in the global market landscape.

Key Findings

• Market Size: Valued at USD 1.87 Billion in 2025, projected to reach USD 1.93 Billion in 2026 and USD 2.57 Billion by 2035 at a CAGR of 3.2%.
• Growth Drivers: Over 55% demand comes from industrial automation and IoT applications, while 30% stems from AI-enabled embedded computing solutions.
• Trends: Around 40% of manufacturers focus on AI-integrated modules, and 35% of new launches target edge computing and low-power architectures.
• Key Players: Advantech, Kontron, Congatec, ADLink, Eurotech & more.
• Regional Insights: North America holds 40% share driven by industrial automation and defense; Europe captures 25% from automotive and healthcare; Asia-Pacific leads innovation with 30% through IoT and electronics; Middle East & Africa contributes 5% from energy and telecom growth.
• Challenges: Nearly 30% of developers face integration issues, and 25% report long validation cycles delaying time-to-market for embedded systems.
• Industry Impact: Over 50% of industrial and automotive applications now rely on modular computing, enhancing system reliability and adaptability worldwide.
• Recent Developments: About 45% of new module designs include AI capabilities, while 30% emphasize improved thermal efficiency and environmental durability.

System on module boards are becoming a cornerstone of modern embedded computing, allowing compact, scalable, and energy-efficient designs across industries. Nearly 60% of global manufacturers are now standardizing modular hardware for faster product development and easier maintenance. This shift supports smart infrastructure, IoT, and AI-driven ecosystems that define the next generation of industrial and digital transformation.

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System on Module Boards Market Trends

The system on module boards market is showing strong and steady growth as industries continue to shift toward smarter, more compact computing solutions. More than 40% of new deployments are being integrated into IoT ecosystems, supporting connected infrastructure and devices across sectors. Around 35% of manufacturers are embedding AI accelerators within modules, enhancing processing speed and energy efficiency. In the automotive sector, nearly 15% of usage focuses on advanced driver assistance and in-vehicle infotainment systems. Meanwhile, over 50% of smart factory setups now rely on system on module boards for automation and control. This rising adoption highlights how industries are moving toward scalable, modular designs for flexibility and faster product development.

System on Module Boards Market Dynamics

OPPORTUNITY

Edge and IoT device expansion

The opportunity for system on module boards is being driven by the expansion of IoT and edge computing, accounting for over 40% of new module deployments. As more smart cities, wearables, and connected devices emerge, demand for modular computing platforms that cut development time and reduce energy usage continues to grow, strengthening the market’s foundation across industries.

DRIVERS

Rising demand for embedded modules

Demand for system on module boards is climbing as embedded computing becomes essential in automation, medical, and automotive applications. These three industries together represent over 60% of market adoption, with industrial automation alone using modules in over 50% of operations for robotics, smart manufacturing, and predictive maintenance.

RESTRAINTS

"Complex integration and high initial cost"

Despite clear advantages, system on module boards face challenges with complex integration and high initial costs. Smaller manufacturers struggle with over 30% of their setup time spent customizing modules to fit specific needs. This added complexity often delays deployment, particularly in industries that require extensive validation before adoption.

CHALLENGE

"Supply chain and qualification hurdles"

A major challenge lies in the tight global semiconductor supply chain and lengthy qualification processes. In automotive and medical applications, certification alone accounts for more than 25% of total project timelines. These constraints reduce flexibility and slow down innovation, limiting the full potential of system on module board integration in high-reliability markets.

Segmentation Analysis

The system on module boards market is segmented by type and application, with clear differences in adoption trends and performance across computing architectures. ARM-based modules continue to dominate embedded applications due to their energy efficiency, while X86 architectures are preferred for industrial and high-performance computing environments. Power PC and other niche modules maintain stable demand in defense, aerospace, and custom hardware sectors. The global market size was USD 1.87 Billion in 2025 and is projected to reach USD 1.93 Billion in 2026, further expanding to USD 2.57 Billion by 2035, reflecting steady industrial integration and technological advancements across all segments.

By Type

ARM

ARM-based system on module boards continue to lead the market thanks to their low power consumption and adaptability across IoT and portable device applications. Around 48% of all modules shipped globally are based on ARM architecture, with significant use in consumer electronics, robotics, and automotive electronics. These modules are preferred for their small footprint and strong ecosystem support.

ARM Market Size was USD 0.93 Billion in 2026, representing a 48% share of the total market. This segment is expected to grow at a CAGR of 3.6% from 2026 to 2035, driven by the rise of mobile and connected devices requiring efficient embedded processors.

X86

X86-based modules are gaining traction for industrial automation, medical imaging, and data-intensive computing applications that require higher processing performance. With about 32% of the total market share, these boards are favored by manufacturers seeking compatibility with legacy systems and scalable performance for advanced control systems.

X86 Market Size was USD 0.62 Billion in 2026, accounting for a 32% share of the total market. This segment is projected to grow at a CAGR of 2.8% from 2026 to 2035, supported by increasing use in industrial PCs and smart automation.

Power PC

Power PC modules maintain relevance in aerospace, defense, and transportation industries, where reliability and deterministic processing are key. Holding around 12% of the market, these modules are known for long product lifecycles and strong real-time capabilities, making them a consistent choice for mission-critical systems.

Power PC Market Size was USD 0.23 Billion in 2026, representing a 12% market share. The segment is expected to expand at a CAGR of 2.4% through 2035, driven by steady government and defense investments in rugged embedded platforms.

Others

The “Others” category includes RISC-V, FPGA-based, and custom-designed module architectures, which are increasingly being explored for specialized embedded solutions. Representing about 8% of total demand, these boards are seeing growing adoption in research, industrial AI, and custom hardware design segments.

Others Market Size was USD 0.15 Billion in 2026, accounting for an 8% market share. This category is forecasted to grow at a CAGR of 3.0% from 2026 to 2035, supported by the expansion of open-source architectures and niche embedded systems applications.

By Application

Defense and Aerospace

System on module boards are extensively used in defense and aerospace systems where ruggedness, reliability, and long-term availability are essential. Approximately 18% of total demand comes from these sectors, with applications in radar systems, avionics, and mission-critical communication hardware. The focus is on compact, secure, and high-performance computing solutions for harsh environments.

Defense and Aerospace Market Size was USD 0.35 Billion in 2026, representing an 18% share of the global market. This segment is projected to grow at a CAGR of 3.4% from 2026 to 2035, supported by increased government investments in defense modernization and aerospace innovation.

Communications

In the communications sector, system on module boards are crucial for building 5G infrastructure, network routers, and IoT gateways. This application area accounts for about 20% of the total market, driven by growing demand for high-speed data transmission and low-latency edge computing across telecom networks.

Communications Market Size was USD 0.39 Billion in 2026, accounting for a 20% share. The segment is expected to grow at a CAGR of 3.5% from 2026 to 2035, driven by expanding 5G infrastructure and industrial connectivity advancements.

Medical

Medical applications make up roughly 14% of the market, as system on module boards power imaging systems, patient monitoring devices, and portable diagnostic equipment. The healthcare industry relies on their precision, scalability, and ability to handle complex data in real-time environments.

Medical Market Size was USD 0.27 Billion in 2026, representing a 14% share of the global market. This segment is projected to expand at a CAGR of 3.1% through 2035, supported by growing digital healthcare adoption and medical device innovation.

Automations and Control

Automation and control applications represent the largest share of the market, contributing around 26%. These modules are widely used in robotics, industrial machinery, and smart factory environments. They enable real-time decision-making, predictive maintenance, and integration with IoT platforms for optimized operations.

Automations and Control Market Size was USD 0.50 Billion in 2026, representing a 26% share. This segment is forecasted to grow at a CAGR of 3.6% from 2026 to 2035, driven by accelerating industrial digitalization and increased use of autonomous systems.

Automotive and Transport

The automotive and transport segment covers applications in advanced driver assistance systems, infotainment, and electric vehicle control units. This category holds around 15% of the total market, reflecting rising adoption in smart and connected vehicle technologies.

Automotive and Transport Market Size was USD 0.29 Billion in 2026, accounting for a 15% share. The segment is expected to grow at a CAGR of 3.3% through 2035, fueled by electrification trends and integration of intelligent computing in vehicle systems.

Others

The “Others” category includes educational tools, consumer electronics, and customized industrial designs that make up about 7% of total demand. These niche areas use system on module boards for prototyping, edge computing research, and device innovation where flexibility is key.

Others Market Size was USD 0.13 Billion in 2026, representing a 7% share of the market. This segment is anticipated to grow at a CAGR of 2.9% from 2026 to 2035, supported by emerging applications in prototyping, automation training, and digital electronics.

System on Module Boards Market Regional Outlook

The global system on module boards market, valued at USD 1.87 Billion in 2025, is projected to reach USD 1.93 Billion in 2026 and further expand to USD 2.57 Billion by 2035. Regional demand varies based on industrial automation maturity, technology infrastructure, and embedded system adoption rates. North America and Asia-Pacific dominate due to strong investments in advanced manufacturing and IoT integration, while Europe and the Middle East & Africa are witnessing steady growth through industrial and automotive applications.

North America

North America continues to lead the system on module boards market, driven by robust demand in industrial automation, defense electronics, and automotive innovation. The U.S. contributes the majority of regional demand, with strong adoption across semiconductor and embedded technology manufacturers. Canada’s growing IoT ecosystem also supports regional expansion, alongside increased focus on AI-enabled modules and smart edge computing.

North America held the largest share in the global market, accounting for USD 0.77 Billion in 2026, representing 40% of the total market. This region’s growth is primarily driven by investments in advanced manufacturing, aerospace electronics, and smart connected infrastructure.

Europe

Europe’s system on module boards market is expanding steadily, with strong adoption in industrial automation, medical technology, and automotive sectors. Countries like Germany, France, and the United Kingdom are leading the regional shift toward embedded control systems and modular computing platforms. Increased demand from robotics and medical imaging applications continues to strengthen Europe’s position in the global market.

Europe accounted for USD 0.48 Billion in 2026, representing 25% of the total market. Growth in this region is supported by rising implementation of automation in automotive manufacturing and the expanding use of embedded technologies in healthcare systems.

Asia-Pacific

Asia-Pacific remains the fastest-growing region, driven by the rapid industrialization of China, Japan, South Korea, and India. Over 45% of regional production facilities are integrating modular embedded solutions into consumer electronics, automotive systems, and smart factories. The region also benefits from government-backed digital manufacturing initiatives that encourage system on module adoption in both startups and large enterprises.

Asia-Pacific Market Size was USD 0.58 Billion in 2026, representing a 30% share of the global market. Growth here is powered by expanding semiconductor manufacturing, rising demand for IoT devices, and increasing automation across electronics and transportation industries.

Middle East & Africa

The Middle East & Africa market is developing at a moderate pace, supported by gradual industrial adoption and increasing demand for embedded control systems in energy, telecom, and transportation. Countries such as the UAE, Israel, and South Africa are investing in digital infrastructure and localized manufacturing, which boosts demand for system on module boards in specialized applications.

Middle East & Africa Market Size was USD 0.10 Billion in 2026, representing 5% of the total global market. The region’s progress is supported by technological diversification, expansion of telecom infrastructure, and early adoption of modular computing for smart city and defense projects.

List of Key System on Module Boards Market Companies Profiled

Investment Analysis and Opportunities in System on Module Boards Market

Investment in the system on module boards market continues to grow steadily as embedded computing becomes a core requirement across industrial, automotive, and IoT-driven sectors. More than 55% of recent investments focus on miniaturized boards with improved AI acceleration and edge-processing capability. Around 35% of funding is directed toward industrial automation and robotics integration, supporting the shift to Industry 4.0 infrastructure. In addition, nearly 25% of venture and R&D investments target AI-enhanced and low-power system-on-module designs for consumer and medical electronics. With over 40% of companies prioritizing long-term modular scalability, the sector offers significant opportunities in customization, product longevity, and regional manufacturing partnerships.

New Products Development

Recent developments in the system on module boards market show a clear shift toward intelligent and energy-efficient designs. Approximately 45% of newly launched modules now include built-in AI inference engines to improve processing at the edge. Around 30% feature advanced thermal management and ruggedized packaging to serve industrial and defense sectors. More than 25% of new products are based on ARM and RISC-V architectures, emphasizing open-source adaptability and flexibility. Additionally, about 35% of companies are investing in compact form factors compatible with 5G and high-speed data systems, reflecting the trend toward enhanced connectivity and modular integration for future-ready embedded solutions.

Recent Developments

• Advantech: Advantech introduced a new line of AI-integrated system on module boards designed for industrial and IoT applications in 2025. These modules improve real-time processing efficiency by nearly 40% and are optimized for edge-based data analytics in automation and robotics.
• Kontron: Kontron launched next-generation COM Express Type 7 modules that enhance network communication speeds by 35% and reduce latency across industrial applications. These modules also include hardware-level security and improved energy performance for data-heavy workloads.
• Congatec: Congatec rolled out its upgraded SMARC 2.1 modules with integrated NPU support, boosting AI inferencing capabilities by 50%. The company’s 2025 lineup focuses on low-power embedded systems for automotive and medical imaging equipment.
• ADLink Technology: ADLink expanded its industrial-grade system on module portfolio with new ruggedized designs supporting harsh environments, achieving a 25% increase in operational lifespan. These modules target transportation, defense, and oil & gas applications.
• SECO srl: SECO introduced ultra-compact modules featuring RISC-V processors aimed at IoT and consumer devices, cutting power consumption by 20% compared to previous models. The 2025 product line supports real-time processing for smart home and wearable applications.

Report Coverage

The system on module boards market report provides an in-depth analysis of the global landscape, covering market segmentation, emerging technologies, and regional performance indicators. It includes assessments of major manufacturers, distribution networks, and product adoption across key verticals such as industrial automation, automotive, medical devices, and communication systems. More than 60% of the report focuses on technological innovation and integration trends driving embedded system applications. Around 25% of the data analysis highlights the impact of IoT, AI, and machine learning advancements on modular board performance and design efficiency.

The report also evaluates the competitive landscape, where over 20 global manufacturers are profiled based on product portfolio, regional presence, and innovation benchmarks. Approximately 35% of companies analyzed have expanded production capacity, while 28% are prioritizing collaborations and joint ventures for next-generation board development. Regional data covers four major markets—North America, Europe, Asia-Pacific, and the Middle East & Africa—accounting collectively for 100% of global market share. Additionally, 30% of the report focuses on supply chain and manufacturing optimization, detailing trends such as material sourcing, miniaturization, and lifecycle management strategies. Overall, this coverage ensures a balanced, data-driven view of the system on module boards market in 2025 and beyond.