China has emerged as a global powerhouse in electronics manufacturing, embedded computing, and advanced automation—positioning the System on Module (SoM) market for significant expansion. A System on Module integrates core computing components such as processors, memory, and communication interfaces into a compact board, enabling scalable, efficient, and high-performance embedded designs. In China, the demand for SoMs is accelerating due to rapid industrial digitalization, growth of smart infrastructure, adoption of AI and IoT technologies, and strong government support for advanced manufacturing.

This article analyzes the drivers, trends, and outlook shaping the China System on Module market.

Market Overview

China’s robust electronics manufacturing ecosystem—spanning Shenzhen’s tech clusters to major industrial hubs across Guangzhou, Shanghai, and Chengdu—offers an ideal environment for widespread SoM adoption. Manufacturers across industry verticals are increasingly shifting from fully custom embedded designs to modular platforms that reduce development cycles and improve product scalability.

The country’s ambitions in smart cities, 5G infrastructure, robotics, advanced healthcare, and intelligent transportation are fueling continuous demand for high-performance SoMs based on ARM, x86, and FPGA architectures. Additionally, the rise of AI inference at the edge and low-power IoT deployments further strengthens the strategic importance of SoMs in China’s next-generation hardware innovation landscape.

Key Market Drivers

1. Rapid Industrial Automation and Smart Manufacturing

China’s manufacturing sector—already one of the world’s largest—is undergoing accelerated modernization. Factories are integrating robotics, automated quality inspection, industrial IoT gateways, and digital control systems. SoMs are now embedded in:

• industrial controllers

• robot control units

• machine vision systems

• HMIs

• predictive maintenance platforms

Their reusability and long-term availability make them a preferred choice for industrial OEMs.

2. Expansion of AI-Driven Edge Hardware

China is heavily investing in AI technology, particularly edge AI solutions used in surveillance, autonomous logistics, smart retail, and smart city systems. SoMs equipped with NPUs, GPUs, and high-performance ARM processors are widely adopted for:

• real-time video analytics

• face recognition terminals

• autonomous delivery robots

• AI-enabled consumer devices

This AI-centric shift is significantly boosting demand for high-compute SoMs.

3. Growth of IoT and 5G Ecosystem

China is one of the global leaders in IoT deployments and 5G infrastructure. SoMs serve as the backbone of:

• edge gateways

• connected sensors

• smart meters

• telecom equipment

• remote monitoring systems

Modules supporting 5G, Wi-Fi 6, and multi-protocol connectivity are gaining strong traction.

4. Strong Domestic Electronics Manufacturing

China’s mature semiconductor and electronics supply chain reduces development costs and accelerates production timelines for SoM-based devices. Many domestic SoM manufacturers offer competitively priced modules with advanced specifications, strengthening the local market.

5. Government Support for Advanced Technologies

Policies such as “Made in China 2025,” “AI Development Plan,” and large-scale smart city programs are indirectly driving demand for embedded module platforms as industries upgrade their digital infrastructure.

Market Trends

1. AI-Accelerated SoMs Leading the Market

Modules built around AI-focused SoCs—such as those featuring integrated NPUs—are becoming mainstream in China’s large surveillance and smart retail ecosystems.

2. Growing Adoption of RISC-V SoMs

China is a strong proponent of RISC-V architecture, and the market is beginning to see early adoption of RISC-V based SoMs for IoT, education, and industrial electronics due to increasing domestic investments.

3. Strong Growth of FPGA-Based Modules

FPGA-enabled SoMs are widely used in telecom (5G baseband), high-speed imaging, industrial automation, and defense systems that demand custom parallel processing.

4. Rise of Ultra-Low-Power Modules

SoMs designed for battery-powered and remote applications are gaining momentum in smart agriculture, utilities, and environmental monitoring.

5. Emphasis on Ruggedization

Chinese industrial and outdoor applications often require modules capable of withstanding extreme conditions, driving demand for rugged, extended-temperature SoMs.

Competitive Landscape

The China SoM market features a mix of:

• Global SoM manufacturers supplying high-end, industrial-grade modules

• Domestic manufacturers offering cost-effective, feature-rich alternatives

• Local design houses providing customized carrier boards and end-to-end embedded solutions

Domestic players are gaining strength through innovations in AI-centric modules and by leveraging China’s semiconductor ecosystem for lower production costs. Many companies are also expanding their international presence, using China as a hub for R&D and mass production.

Future Outlook

The China System on Module market is expected to see strong expansion driven by:

• rapid adoption of edge AI and machine vision

• continued growth in smart city deployments

• expansion of 5G and IoT-powered infrastructure

• increasing export of China-made electronics

• rising interest in domestic semiconductor architectures

Key growth opportunities include:

• AI-enabled SoMs for surveillance, robotics, and smart retail

• RISC-V modules for cost-effective IoT solutions

• High-performance FPGA SoMs for telecom and industrial automation

• Rugged modules for smart agriculture, mining, and energy sectors

• Medical-grade modules powering portable diagnostics and healthcare devices

As China continues to lead in hardware innovation and embedded system development, SoMs will play an essential role in enabling the country’s next wave of intelligent devices and digital infrastructure.