The global application specific integrated circuits market size was valued at USD 14.7 billion in 2020 and is projected to reach USD 24.59 billion by 2030 at a CAGR of 5.28% from 2022 to 2030.
ASICs, or application-specific integrated circuits, are non-standard integrated circuits created for a specific application or use. The majority of the time, an ASIC design is started for a product with a significant projected manufacturing run. Integrated circuits designed specifically for a given application may contain a sizable portion of the necessary electronics.
Because they are more expensive to design than regularly integrated circuits, they are typically used in high-volume goods (such as cell phones and applications of the like). However, if the volumes are great enough, application-specific integrated circuits might assist applications with lower costs. The application-specific integrated circuit design can be altered to meet unique product needs, and the number of additional components can be greatly reduced because the majority of the entire design can be contained in a single integrated circuit.
Due to their advantageous characteristics, including lower power consumption, higher integration, intellectual property protection, and higher functionality, the demand for ASICs has been rising over the past few decades. The market for application-specific integrated circuits (ASICs) is also growing as a result of increased investment in the development of sophisticated integrated circuits.
No matter how expensive an ASIC design is, many high-volume applications can benefit greatly from using ASICs. The ASIC design can be modified to specifically address the needs of the product. With the use of ASIC, a large portion of the total design can be included in a single integrated circuit, hence lowering the number of additional components. As a result, ASICs are frequently employed in high-volume goods like cellphones and office supplies.
For logic solutions in aerospace applications, the use of field-programmable gate arrays (FPGAs) has some benefits. It offers outstanding performance capabilities, cutting-edge IP-like microprocessors, and memory interfaces in programmable devices. The appeal of these programmable electronics for aircraft applications may increase as a result. ASIC chips are additionally utilised for aviation or maritime security identification in order to verify that the bearer has passed the security inspection.
Onboard data handling protocols, high-speed, high-accuracy accelerometer processing for inertial navigation, and cockpit lighting control that corrects for sunlight to night vision are just a few of the applications in aeroplanes where ASICs are being employed more and more. Therefore, it is anticipated that the market will experience growth throughout the forecast period as ASIC technology adoption increases in aircraft applications.
The process of creating application-specific integrated circuits is expensive. There are many levels of customization that can be employed to cut expenses. Therefore, the market for application-specific integrated circuits is expected to have slow growth over the coming years due to factors such as the high cost of producing custom circuits, the difficulty of developing circuits, and functional reliability problems.
With the development of technologies like big data analytics, the Internet of Things (IoT), blockchain, and machine learning, the unit cost of application-specific integrated circuits has been falling, which is having a favourable effect on the market globally. The aforementioned developments enable the organisational data to move throughout the IT network more quickly thanks to their widespread use in linked devices, data centre infrastructure, and public clouds. As a result, the firms are using these ICs to enable the operation of cutting-edge technology in devices, which lowers operational costs. In addition, the electronics industry's ongoing development creates a perpetual demand for advancement in application-specific integrated circuit designs to meet users' precise needs.
This market can be segmented on the basis of product, application, region and competitors. With a market share of 48.0% in 2019 and an expected dominance of the application-specific integrated circuits market over the forecast period, semi-custom ASICs retained the greatest market share. Due to its low complexity and broad range of applications compared to other industries, the rise is attributable to these factors. Two further sub-segments, cell-based and array-based, are divided within the semi-custom ASIC market. Additionally, because of its electrical and digital-logic properties like inductance and capacitance, cell-based ASIC retained the highest market of about 70% in 2019. As a result of these properties, the component has a high component density and better electrical performance. Due to their advanced inbuilt static random access memory and internet protocol cores, which aid in the system's smooth operation, cell-based ASICs can be employed in any product, regardless of the complexity of its design.
More than 34% of the global market share in 2019 was held by the consumer electronics sector. On the strength of the growing use of ASICs in phones, tablets, and laptops around the world, the consumer electronics vertical is predicted to offer considerable growth prospects for all the stakeholders engaged in the value chain. These ASICs provide a number of benefits, including as low power consumption, IP security, compact design, and better bandwidth, which has led to a growth in the use of the ICs in the consumer electronics sector. Additionally, the steady performance and increased energy efficiency provided by the quick innovation of electronic devices are fueling the expansion of the market for application-specific integrated circuits. These ICs are employed in numerous industries, including telecommunication, industry, and healthcare, in addition to the consumer electronics industry.
In 2019, North America accounted for more than 20%. Maxim Integrated Products Inc., Qualcomm Inc., Intel Corporation, and Texas Instruments Inc. are just a few of the well-known companies that have a substantial presence in the area and are responsible for the expansion. The U.S. dominates the region in the contemporary industrial landscape. In the United States, there has been a significant advancement in the fields of consumer electronics, medical monitoring systems, and electric and hybrid automobiles. North America is home to a sizable number of application-specific integrated circuit manufacturers and solution providers due to its early adoption of the ASIC technology.
Over the projected period, Asia Pacific is predicted to increase at the fastest rate. The rise in sales of cellphones in the area and the quickly expanding demand for energy-efficient devices are both credited with the growth. Growing digitalisation, increased use of high-tech devices, improved vehicle electronics, and an increased requirement for miniaturisation are all contributing to market growth in developing nations like China, Japan, and India. Additionally, the presence of numerous semiconductor firms in the area, including Infineon Technologies, as well as major manufacturers of consumer electronics, including LG Electronics and Samsung Electronics Co., Ltd., is fueling the expansion of the sector.
Application specific integrated circuit market manufacturers are concentrating on research and development, which would help them become more prevalent in the market.
Are some of the leading companies in the market for application-specific integrated circuits.
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|