Integrated Circuit Market (Updated Version Available)

Key Market Overview:

Integrated Circuit Market is estimated to reach over USD 486.90 Billion by 2030 from a value of USD 1217.36 Billion in 2022, growing at a CAGR of 12.3% from 2022 to 2030.

An integrated circuit (IC) is a compact arrangement of transistors, resistors, and capacitors on a single piece of semiconductor material (usually silicon) that performs various functions including amplification, computation, and storage of data. Building block of modern electronics, integrated circuits enable the miniaturization of electronic devices and lead to the development of computers, smartphones, and other technology.

Integrated circuits (ICs) have transformed the electronics industry and have become a critical component in modern technology. ICs have fueled numerous technological advancements, including the development of computers, smartphones, and the Internet of Things (IoT). Additionally, ICs have found wide variety of applications, ranging from consumer electronics to communication, which has led to the growth of market for ICs. For instance, analog circuit, a type of IC is used to control some device such as air conditioner and heaters, in response to continual changes in the environment. The continued advancements in IC technology will further accelerate innovation and growth in the electronics industry.

The market is characterized by rapid technological advancements and high demand for electronic devices due to the rapid digitalization. Hence, resulting in growth of ICs market. Major players in the market include companies such as Intel, Samsung, Taiwan Semiconductor Manufacturing Company (TSMC), and Qualcomm. The market is segmented based on application areas such as consumer electronics, automotive, communication, and industrial, among others.

Integrated Circuit Market Report Coverage:

Market Dynamics:

Driver

Owing to advancement of latest technologies coupled with rapid digitalization, a wide adoption of smartphones, tablets, laptops, and other consumer electronics has been identified thus driving the demand for ICs globally. For instance, microprocessor are found in computers, smartphones, tablets, gaming consoles, and other devices. It serves as the "brain" of aforementioned electronic devices that performs tasks such as controlling the display, managing memory and storage, and executing software applications. Furthermore, the rapid advancement of technology, such as 5G networks, AI, and robotics, has also accelerated the demand for ICs, as the above mentioned technologies require advanced ICs to function.

Restraint

Integrated Circuits are expensive to produce, particularly for advanced manufacturing processes, leading to high costs for consumers. In addition, the production of ICs result in significant environmental impacts, such as environmental impact of electronics waste. Companies must comply with strict environmental regulations, that adds to the costs and complexity of the production of ICs.

Opportunities

The IC industry is expected to invest in advanced manufacturing processes, such as 3D printing and nanotechnology, which would result in more advanced and efficient Integrated circuits.  Researchers at Stanford University have demonstrated a method to manufacture functioning integrated circuits using carbon nanotubes. In order to make the circuit work, scientists developed methods to remove metallic nanotubes, leaving only semiconducting nanotubes, as well as an algorithm to deal with misaligned nanotubes.

By Type

The type segment is bifurcated into General-purpose IC and Application-specific IC. General-purpose IC segment contributed the largest shares to the integrated circuit market growth in terms of revenue. Owing to the factor that general purpose integrated circuits (GPICs) are not specifically designed for a particular application or function, but instead are versatile and have wide range of applications. For instance, digital signal processors (DSP) take real-world signals like, video, audio, voice, pressure, temperature to perform high-speed mathematical operations on digital signals. Such processors find wide variety of application such as audio processing, telecommunications, and control systems.

Furthermore, application specific ICs (ASICs) are anticipated to register the fastest growing CAGR in the forecast period. ASICs are integrated circuits that are designed and optimized for a specific application or function. For instance, GPUs are ASICs that are designed to perform complex mathematical operations for computer graphics applications. For instance, in a modern video game, the GPU is responsible for rendering complex scenes with thousands of individual objects, each with its own unique properties such as color, texture, and shading.

 By Product Type

The Product Type segment is separated into Analog ICs, Digital ICs, Mixed-Signal IC, and Others. Digital ICs segment is dominant in the market in terms of revenue due to its application in electronic devices and systems. For instance, smartphone contains several digital ICs, including microprocessors, memory chips, and communication chips. The microprocessor performs the primary data processing functions, such as running the operating system and executing applications. The memory chips store data and the communication chips handle communication functions such as Wi-Fi and cellular connectivity.

The analog ICs segment are estimated to grow at fastest CAGR in the forecast period due to the fact that Analog integrated circuits handle continuous signals, rather than digital signals. Functions such as amplification, filtering, and conversion of signals are performed by these ICs. For instance, power supply contains analog ICs that perform functions such as voltage regulation and current control, which result in a stable power supply output. The analog ICs in a power supply typically include voltage regulators, filters, and feedback circuits that ensure that the output voltage and current are within specified limits.

By End Use

The end-user segment is categorized into consumer electronics, automotive, communication, computing, industrial, healthcare, others. Consumer electronics segment holds the largest share in the integrated circuit market owing to the fact that integrated circuits provide key functions and enable advanced features in consumer electronic devices. For instance, System-on-a-Chip (SoC), a single chip that integrates multiple components, such as a central processing unit (CPU), graphics processing unit (GPU), memory, and I/O interfaces, onto a single die. Qualcomm Snapdragon and Apple A-series processor are certain examples of consumer electronics where SoCs are being used.

Computing sector is anticipated to account for the substantial growth in terms of CAGR due to the fact that integrated circuits are the backbone of modern computing technologies and provide the necessary computing power and functionality to make computing devices work effectively. For instance, Memory chips, including DRAM and flash memory, are also critical components in computing devices. They provide a fast and reliable storage solution for data, allowing computers to quickly access and process the data they need. For example, the Samsung K4B4G1646E and Toshiba TH58TEG7DDJBA4C are popular DRAM and flash memory chips used in computing.

By Region

The regional segment divided into Europe, Asia Pacific, North America, the Middle East and Africa, and Latin America. The Asia Pacific region is the largest and fastest-growing market for integrated circuits (ICs), driven by the growing demand for consumer electronics, computing devices, and communication devices. In China, the government's focus on promoting the domestic semiconductor industry and the growth of the consumer electronics and computing industries is driving the demand for ICs. Companies such as SMIC and Huawei are significant players in the Chinese IC market.

Moreover, the North American region is also expected to show substantial growth in the integrated circuit market due to the presence of strong technology and semiconductor industries in the region. United States being the largest market for ICs in North America, with several leading IC manufacturers leads to the growth of integrated circuit market in North American region.

Integrated Circuit Market Competitive Landscape:

The Integrated Circuit market is highly competitive, with several large and small players operating in the market. Companies that invest in technology and innovation, offer competitive pricing, and differentiate their products have a competitive advantage in the market. Following are the major market players that comprise the latest market concentration–

• Samsung
• Texas Instruments
• Broadcom
• Qualcomm
• SK Hynix
• Micron Technology, Inc
• NXP Semiconductors
• Taiwan Semiconductor Manufacturing Company Limited (TSMC)
• STMicroelectronics N.V.

 Recent Developments

• In 2022, Intel, an American multinational corporation and technology company acquired the Tower Semiconductor for USD 5.4 billion. Acquisition accelerated Intel’s path in becoming a major provider of foundry services and capacity globally. Intel now offers one of the industry’s broadest portfolios of differentiated technology.
   
• In September 2021, Nvidia launched latest generation of graphics processing units (GPUs) the GeForce RTX 30 series. It is based on the company's new Ampere architecture and is built on the Samsung 8nm process. The new GPUs offer a significant performance increase compared to previous generations, with up to 2x the performance of the GeForce RTX 20 series.