Advanced Packaging Market Size, Share & Trends Analysis Report By Type (Flip Chip CSP, Flip-Chip Ball Grid Array, Wafer-Level CSP, 5D/3D, Fan-Out WLP, Others), By End-Use (Consumer Electronics, Automotive, Industrial, Healthcare, Aerospace and Defense, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global advanced packaging market size is projected to reach USD 102,097 million by 2030, from USD 42,458 million in 2021, and is anticipated to register a CAGR of 10% during 2022–2030. Factors like growing demand for the miniaturization of devices and emerging trends of fan-out wafer level packaging boost demand for advanced packaging.

Chip packaging has evolved from its traditional concept of providing protection and I/O for a single discrete chip to include a growing number of techniques for numerous interconnecting chips. By providing high device density in a tiny footprint, advanced packaging has become critical to integrating more functionality into a variety of electronics, such as cellular phones and self-driving automobiles.

Wafer-level packaging (WLP) is a sort of advanced packaging technology in which an integrated circuit is packaged while still on the wafer. This packaging technique can result in a wafer package that is approximately the same size as the original die.

Market Dynamics

Market Drivers: 

Growing Demand for Miniaturization of Devices to Boost Demand for Advanced Packaging

Manufacturers are focusing on offering tiny electronic devices in many industry verticals such as consumer electronics, healthcare, automotive, and semiconductor IC manufacturing as technology advances. These companies are shrinking integrated circuits in order to achieve fine patterning on wafers and chips. Furthermore, with the sophistication and advancements in wearable and personalized healthcare gadgets, the medical device market is seeing an increase in demand for nano-sized robotic surgery equipment. As a result of the movement toward small electrical gadgets, designers must move beyond traditional packaging methods and employ sophisticated packaging.

Due to the increased need for high-performance electronics, the semiconductor industry is seeing growth in miniaturized electronic devices. Furthermore, advances in technologies such as RFID, MEMS, and other power devices are driving up demand for thin wafers. The wafer back grinding procedure, for example, is used to reduce wafer thickness from 750 m to 75-50 m. 

Thin wafers assist minimize package thickness, which is beneficial for smartphones, portable gadgets, and other small electronic equipment. Emerging applications in semiconductor technology that use ultra-thin and ultra-thin dies produce a great demand for miniaturized electronic devices, which helps to drive the global advanced packaging market.

Enhanced System Performances and Optimization of Advanced Packaging to Soar the Advanced Packaging Market Growth

The semiconductor packaging industry is helping to build next-generation chip designs by supplying enhanced IC containers. For new devices, the integrated circuit industry has traditionally used classic chip scaling and unique architectures. Furthermore, multi-chip packages are found in every phone, data center, consumer electronics, and network, fueling the advancement of advanced packaging by promoting system optimization. Because it allows a range of different processing modules and memories to be coupled together utilizing very high-speed interconnects, advanced packaging encourages the use of AI, machine learning, and deep learning.

As a result, several industry verticals, including automotive, healthcare, aerospace and defense, and the industrial sector, are increasingly using innovative packaging. All of these characteristics contribute to improved system performance during operation and hence function as a primary driver for market expansion across various end-use industries.

Market Restraint: 

High Cost to Hamper the Advanced Packaging Market Growth 

In comparison to traditional semiconductor packaging techniques, advanced packaging is a relatively expensive procedure. At some points, the cost of designing and producing semiconductors for each successive node is prohibitively expensive. Furthermore, due to the complexities of the ICs, wafer fabrication costs are substantially greater. The cost of advanced packaging rises as more chips and ICs are packaged with complicated patterns, slowing their adoption.

Advanced packaging has a number of advantages, including easier and larger interconnections for chips and wafers, as well as the ability to integrate heterogeneously, making it particularly feasible in the semiconductor industry. However, because such characteristics are readily available, the cost of advanced packaging over standard packaging is rather high, making it difficult for small businesses to implement.

Market Opportunity: 

Emerging Trends of Fan-out Wafer Level Packaging to Create Lucrative Opportunities for Advanced Packaging Market Growth

Fan-out wafer-level packaging is an integrated circuit packaging technology that improves traditional wafer-level packaging options. Unlike traditional packaging methods, where a wafer is diced first, fan-out wafer-level packaging includes packaging integrated circuits while the wafer is still intact and then chopped. Compared to traditional packages, fan-out wafer-level packaging has a reduced package footprint and better thermal and electrical performance. Furthermore, fan-out wafer-level packaging encourages many wafer contacts while reducing the die size.

Several essential elements contribute to the global adoption of technology. These include wafer bumping elimination, flip-chip reflow elimination, improved wafer-level yield, embedded passive device integration, and easier system-in-package and 3D integrated circuits packaging adoption. These characteristics encourage the use of fan-out level packaging in modern packaging solutions and provide the profitable potential for global market expansion.

Regional Analysis

Based on region, the global advanced packaging market is divided into North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.

Which Region Accounts for Most Demand for Advanced Packaging?

The Asia-Pacific region dominated the global market, with revenue forecasted to grow at a CAGR of 10% to USD 80,060.28 million by 2030.

Asia-Pacific is the world's fastest-growing region. Due to the availability of high-end upgraded technologies, increased demand for smart devices, and expansion in manufacturing industries, it is the most profitable market for advanced packaging. Furthermore, the evolution of packaging technology is fueled by a number of helpful non-profit organizations. These organizations take various measures to construct improved power infrastructure, which fuels the region's advanced packaging market expansion.

The North American region accounts for the second-largest share of the global market, at a CAGR of 10% expected to generate USD 10,625 million in revenue by 2030.

The United States, Canada, and Mexico make up North America. Sales of equipped advanced packaging are driven by the increase in disposable income of the North American population. Different sectors' demand for intelligent and smart equipment and technological platforms has expanded the use of innovative packaging solutions. The use of improved technology in the energy & power industry is boosting the market's growth. Furthermore, during the forecast period, the use of microcontrollers and microprocessors in consumer electronics and electric cars is likely to drive the market for sophisticated packaging.

Segmental Analysis

By type, the market is segmented into flip-chip CSP, flip-chip ball grid array, wafer-level CSP, 2.5D/3D, fan-Out WLP, and others. Flip-chip ball grid array type accounted for the largest shareholder in the programmable logic controller market and is anticipated to grow at a CAGR of 9%, generating revenue of USD 27,738 million by 2030.

The controlled collapse chip connection method is used for die to substrate connecting in the flip-chip ball grid array, which is a low-cost, high-performance semiconductor packaging solution. Design freedom for substantially better signal density and functionality into a smaller die and packaging footprint is provided by flip-chip BGA. Flip-chip BGA is more expensive, but it gives better performance. It's commonly utilized in ASICs, DSPs, and other high-performance applications.

By end-use, the market is segmented into consumer electronics, automotive, industrial, healthcare, aerospace & defense, and others. Consumer electronics hold the largest share in the market and the segment is expected to grow at a CAGR of 10%, generating a revenue of USD 55,679 million by 2030.

Smartphones, televisions, DVD players, and other consumer gadgets are used by end-users regularly for commercial and personal purposes. Owing to the widespread acceptance of smart devices across many industry verticals and the introduction of IoT, the consumer electronics market is growing at a breakneck rate. Since an embedded processor is a microprocessor utilized in many electronic devices such as digital watches, digital cameras, MP3 players, and other home appliances to process data at high speed, it aids in the efficient performance of system operations continuous and repetitive tasks.

Impact of covid-19

As the world moves into lockdown to halt the transmission of the COVID-19 virus, the uncertainty and constraints are hindering markets. Countries such as China, Italy, Australia, the United Kingdom, Canada, and the United States, among others, are the most affected. Thus, this may impact the global mining industry.

The ongoing spread and different responses to the COVID-19 are predicted to delay the existing mining projects. COVID-19's effect on the mining sector may take an extended period. For example, in Italy, one of the worst affected countries outside of China, the national lockdown has delayed various ongoing mining projects in-country. Alta Zinc suspended the manufacture of its flagship project, the Orno Mine Project, in the Lombardy region of Northern Italy.

Due to COVID-19-related regulations, major mining companies such as Rio Tinto and Anglo American, among others, have declared plans to scale back or close their operations. Following Mongolian government limitations, Rio Tinto's Oyu Tolgoi project in Mongolia ceased non-essential operations. Due to the Peruvian Government's proclamation of a 15-day quarantine to restrict the spread of COVID-19, Anglo American is temporarily demobilizing the majority of its extensive construction team at its Qullaveco copper mine in Peru. Hence, due to the lockdown in various countries, the consumption of mining chemicals is expected to decrease during 2020, which is likely to impact the market studied.

Recent Developments

• May 2022, according to records filed with city planners, a Japanese semiconductor and electronics business has proposed expanding its San Jose tech campus with a large new structure. Renesas Electronics has proposed the construction of a new building at 6027 Silver Creek Valley Road in South San Jose.
• May 2022- Microchip Technology Inc. has unveiled the GridTime 3000 GNSS time server, a software-configurable system that protects power plants and substations from surges, bad weather, and cyberattacks targeting critical infrastructure.
• May 2022- Investing $1000 in Texas Instruments: Based on the current price of $170.42 for TXN, an investor who invested $1000 in TXN 15 years ago would be worth $4,842.05 today.
• May 2022- After soliciting buyout offers, Toshiba Corp (6502.T) in Japan said on Friday that it has received interest from ten possible investors. The company also declared a special dividend of $545 million, marking the second year in a row that it has done so in response to activist shareholders' lobbying.
• May 2022- Intel Corporation's chief executive officer and a member of its board of directors is Patrick (Pat) Gelsinger. Our mission at Intel is to create game-changing technology that enhances the lives of everyone on the planet. Every day, we endeavour to have a positive global effect and to be responsible corporate citizens. Technology is rapidly reshaping our world, becoming increasingly important to every element of human existence. Semiconductors are at the heart of this technology. Semiconductors are at the heart of all innovation as the world becomes more digital, from enabling people to work from anywhere, to remaining connected with friends and family, to improving healthcare and developing driverless vehicles.
• May 2022- Qualcomm Technologies, Inc. and Viettel Group announced plans to collaborate on the development of a next-generation 5G Radio Unit (RU) with enormous MIMO capabilities and distributed units (DUs). This is aimed at accelerating the development and deployment of 5G network infrastructure and services in Vietnam and around the world. Viettel expects to accelerate the development and commercialization of high-performance Open RAN massive MIMO solutions, which simplify network deployment and lower total cost of ownership, by combining the Qualcomm® X100 5G RAN Accelerator Card and Massive MIMO Qualcomm® QRU100 5G RAN Platform with its own advanced hardware and software systems (TCO).
• May 2022- Analog Devices, Inc. has unveiled a three-axis MEMS accelerometer that may be used in a variety of healthcare and industrial applications, such as vital sign monitoring, hearing aids, and motion-enabled metering devices. The ADXL367 accelerometer reduces power consumption by two times compared to the previous generation (ADXL362) while boosting noise performance by up to 30%. The new accelerometer also has a longer field duration, which extends battery life while lowering maintenance frequency and costs.