Communication Standard Logic IC Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Communication Standard Logic IC Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Communication Standard Logic IC Market is expected to grow by 4.85% CAGR during the forecast period. New applications have emerged as a result of recent technological breakthroughs in this industry. The increasing use of smartphones, the adoption of electric vehicles, and the expansion of telecommunication infrastructure in both developed and developing countries are all factors driving up demand for Communication Standard Logic IC.

Key Highlights

• Manufacturers are increasingly focusing on developing gadgets that minimize power consumption while delivering the desired performance in a small package. As a result, the Communication Standard Logic IC market is expected to be driven by the increased focus on device integration.
• Telecommunication modules employ communication ICs to interpret, process, and transmit data signals. It simplifies electrical equipment and supports numerous technologies, allowing it to be used in automotive, data centers, and the consumer electronics sector. Amplifier circuits, FM wave detection ICs, mixers, and other ICs are used in the electronics industry to deliver effective solutions. Industry players are helping to boost their market share by providing services such as IC selection advice for specific applications.
• The communication ICs market is expanding due to rising internet penetration and rising demand for consumer devices such as mobile phones, laptops, and tablets. Because of the rising need for high-band connectivity services around the world, the COVID-19 pandemic is positively impacting the market growth. Furthermore, the increased production of medical equipment contributed to the market's expansion.
• Rapid expansion in the automotive industry is favorably influencing market growth due to the increasing deployment of connection services in cars. Furthermore, a rise in the connected automobiles market is expected to drive market growth throughout the forecast period.

Key Market TrendsAutomotive Industry to Drive the Market Growth

• Because of rising consumer awareness about environmental pollution and rising oil prices, the demand for electric vehicles is expanding globally, which is driving the market for communication logic IC to rise. The potential of vehicle-to-vehicle (V2V) communication to wirelessly transmit information on the speed and position of nearby cars holds enormous promise for reducing traffic congestion, avoiding crashes, and improving the environment.
• Increased sales of vehicles as a result of increased connectivity options in vehicles are positively impacting the industry's growth. Furthermore, the market is expected to develop in the forecast period due to the rapid growth of the automotive sector.
• Germany produces a major portion of the world's premium cars, accounting for over 70% of all premium vehicles sold worldwide. According to the Federal Statistical Office, Germany's automotive microelectronics sector is predicted to grow at a rate of 5.9% each year, making it the industry's strongest country. The addition of advanced features and utilities to such vehicles boosts the market's demand.
• The need for ICs in automotive is growing as a result of new government laws aimed at improving driver safety and security. Because of the existence of large players offering innovative solutions, North America held a dominating market for automotive ICs in 2016.
• Furthermore, the market for automotive ICs in North America has grown due to the widespread adoption of modern vehicles and a surge in public demand for safety and security in vehicles. Due to increased sales of modern vehicles, passenger cars have a larger penetration in this region, which is likely to boost market growth even further.

Asia pacific is Anticipated to be the Fastest Growing Region

• Asia-Pacific is the fastest-growing region in terms of demand, consumer base, and economy of the region. Many growing economies in the Asia-Pacific area have lower ownership rates for consumer electronics, automobiles, etc. The region is also witnessing rapidly growing industries such as automobiles, electronics, semiconductors, smartphones, and others. The region also has major countries with massive military budgets, driving the demand for electronics and IC products. These combined factors make Asia-Pacific one of the fastest-growing geography for the market.
• According to the GSMA's Mobile Economy Report 2021, nearly 200 million new mobile subscribers will be added by 2025, bringing the total number of subscribers to 1.8 billion (62% of the region's population). Moreover, South Asia will account for a large portion of the expansion, with India accounting for more than half of the new users by 2025.
• 5G networks, cloud services, edge computing, AI, big data, and the Internet of Things will all be critical in driving the market in a post-pandemic digital economy. By the end of 2025, Asia Pacific will have 429 million 5G connections and 3.3 billion total IoT connections, according to the GSMA.
• The region has a strong infrastructure for automobile manufacturing and a huge market for consumption. Asia-Pacific is the home of major automobile manufacturers such as Honda, Hyundai, Toyota, TATA, etc. The region is also a huge market for the automobile industry, with consumers of all classes.
• According to the 2022 data by OICA, in 2021, China produced approximately 21.4 million passenger cars, while Japan and India produced approx. 6.6 and 3.6 million cars. While China has partnerships and collaborations with global automobile manufacturers, making it the biggest auto producer in the region, ahead of South Korea, Japan, and India, these countries enjoy a strong domestic automotive sector. With the rise of the auto industry in the region, the demand for the studied market will also grow.

Competitive Landscape

The market for Communication Standard Logic ICs is competitive, with several manufacturers. Product innovation, mergers, and acquisitions are some of the techniques used by market players. Furthermore, as the IC manufacturing process improves, allowing for more applications, new industry participants are extending their market presence and expanding their corporate footprint in emerging nations.

• In November 2021 - The R9A06G061 power line communication (PLC) modem IC was introduced by Renesas Electronics Corporation, a leading provider of sophisticated semiconductor technologies. The R9A06G061 provides high-speed communication of up to 1 Mbps across extended distances of a kilometer or more without the use of relays, broadening the scope of PLC applications.
• In August 2021 - Renesas Electronics Corporation, a leading provider of advanced semiconductor solutions, and Dialog Semiconductor Plc, a leading provider of battery and power management, Wi-Fi, Bluetooth, low energy, and Industrial edge computing solutions, have announced the completion of Renesas' acquisition of Dialog's entire issued and to be issued share capital.

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