Integrated Circuit Market Forecasts to 2028 – Global Analysis By Type (Mixed-Signal IC, Digital IC AND Analog IC), Product Type (Application-Specific IC and General-Purpose IC), End User and By Geography

Integrated Circuit Market Forecasts to 2028 – Global Analysis By Type (Mixed-Signal IC, Digital IC AND Analog IC), Product Type (Application-Specific IC and General-Purpose IC), End User and By Geography

According to Stratistics MRC, the Global Integrated Circuit Market is accounted for $561.7 billion in 2022 and is expected to reach $1285.8 billion by 2028 growing at a CAGR of 14.8% during the forecast period. An integrated circuit (IC) is a tiny silicon-based semiconductor chip. It is an electronic component assembly made up of manufactured small active and passive devices. It was created on a small scale to design a circuit with multiple components and the linkages between them. An integrated circuit (IC) can perform the functions of a microprocessor, amplifier, counter, oscillator, timer, or computer memory. An integrated circuit might be analogue, digital, or a combination of both.

According to SEMI China, these investments are paying off, as China's wafer fab capacity market share surged from 9% in 2010 to 17% in 2020.

Market Dynamics:

Driver:

High growth in use of integrated circuits

Many IC manufacturers are now attempting to fulfil the bespoke requirements of the consumers in order to improve the product's presence across the worldwide market and promote its attraction among customers. Manufacturers are working on custom-made integrated circuits that can provide all of the major basic electronic components in a single chip. According to current Semiconductor Industry Association (SIA) statistics, global semiconductor sales increased by 24% in October 2021, reaching about USD 49 billion, compared to the same month the previous year. The massive growth helped the industry to accumulate an additional USD 400 million providing an optimistic performance to the market over the forecast period.

Restraint:

Low chances of refabrication or repair

ICs are a compact unit composed of various electronic components mounted on a semiconductor material such as silicon, which decreases the size and complexity of electronic devices. However, if one component in the IC chip breaks, the entire chip must be replaced, and it is not possible to repair or modify the circuit, resulting in higher maintenance expenses. Furthermore, due to reasons such as the high cost of making bespoke circuits, the complexity of building circuits, and functional dependability issues, the market for application-specific integrated circuits is likely to grow slowly in the coming years.

Opportunity:

Substantial demand for ICS in automotive sector and iot-based devices to provide noteworthy

Increased prospects for IoT-based devices have increased the demand for analogue ICs, digital ICs, and microcontroller sensors in automated equipment and IoT devices. Continuous attempts, for example, to introduce developed and advanced car infotainment installations, such as current entertainment and information setup or precise GPS tracking and navigation, will drive demand and subsequent sales of automotive microcontrollers (MCU). Furthermore, due to excessive fluctuation in fuel prices and government subsidies to stimulate EV sales, electric vehicle sales have increased significantly.

Threat:

Unable to operate at low temperature coefficient

Because of their possible inability to attain a low temperature coefficient, integrated circuits may not be suitable for operating in hostile settings or at freezing temperatures. They are also less flexible and cannot work well if improperly installed or handled carelessly. ICs are prone to failure when subjected to intense heat, making them unsuitable for use in high-temperature situations. Analogue and digital integrated circuits cannot operate at high voltages with low operational noise. These circuits can only handle a limited amount of power.

Covid-19 Impact

The COVID-19 epidemic has impacted various significant economies throughout the world, causing severe cash shortage and lowering cash liquidity. As a result, most pessimistic investors and manufacturers halted the market's growth rate. Furthermore, bans on cross-border commerce of non-essential commodities restricted the import and export of ICs from Asia Pacific manufacturers to other areas, lowering sales in other regions. As a result of increased usage, the price of integrated circuits increased. The disruption of the semiconductor value chain and supply chain during the initial period of the pandemic severely hampered the market's development prospects.

The analog IC segment is expected to be the largest during the forecast period

The analog IC segment is estimated to have a lucrative growth. Analog integrated circuits are integrated circuits that produce an electrical representation of continuous signals. Op-amps, linear regulators, phase locked loops, oscillators, and active filters are all designed using analogue integrated circuits. Analog design is primarily concerned with the physics of semiconductor devices such as gain, matching, power dissipation, and resistance. Analog integrated circuits are less expensive than digital circuits, have fewer faults, and cause no significant changes in data if a minor error occurs.

The consumer electronics segment is expected to have the highest CAGR during the forecast period

The consumer electronics segment is anticipated to witness the highest CAGR growth during the forecast period, due to the growing use of ASICs in phones, tablets, and laptops around the world. These ASICs provide a number of advantages, including as low power consumption, IP security, small size, and higher bandwidth, which has led to growing popularity in the consumer electronics market. Furthermore, the increasing invention of electronic devices allows for consistent performance and energy efficiency, propelling the application specific integrated circuit industry forward.

Region with highest share:

North America is projected to hold the largest market share during the forecast period. The effective performance of the global leaders and the promising performance of the application sectors in the regional market ensure a significant share of the region outperforming all other regions. A considerable number of application-specific integrated circuit manufacturers and solution providers can be found in North America. Established automobile production in Detroit is driving up demand for automotive microcontrollers. The growth of automotive manufacturing clusters in Canada is expanding improvements throughout North America.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period. Many major companies and rapidly expanding market suppliers rely on Japan and China as regional markets. The focus of these firms on R&D operations and the development of upgraded and effective market products also contributes to reasonable industry growth. Furthermore, steps launched by the Indian government to boost indigenous production of chips and other semiconductor devices may prove critical in the market's development. There are several expansion potential in India, as well as a comprehensive market landscape in far eastern countries.

Key players in the market

Some of the key players profiled in the Integrated Circuit Market include Analog Devices, Inc., Samsung, NVIDIA, STMicroelectronics N.V., Texas Instruments, Inc., Infineon Technologies AG, NXP Semiconductors N.V., SK Hynix, Avago Technologies, Intel Corporation, Qualcomm Technologies, Inc., Toshiba Electronic Devices & Storage Corporation, AMI Semiconductor and Micron Technology, Inc.

Key Developments:

In August 2021, Analog Devices, Inc. (ADI) announced the completion of its previously announced acquisition of Maxim Integrated Products, Inc. The combination is expected to strengthen other ADI’s position as a high-performance analog semiconductor company.

Types Covered:
• Mixed-Signal IC
• Digital IC
• Analog IC

Product Types Covered:
• Application-Specific IC
• General-Purpose IC

End Users Covered:
• IT & Telecommunications
• Consumer Electronics
• Manufacturing and Automation
• Automotive
• Other End users

Regions Covered:
• North America
US
Canada
Mexico
• Europe
Germany
UK
Italy
France
Spain
Rest of Europe
• Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
• South America
Argentina
Brazil
Chile
Rest of South America
• Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements