Field Programmable Gate Array (FPGA) Market

Market Overview

The global field programmable gate array (FPGA) market size was valued at USD 7,678.39 million in 2023. It is estimated to reach USD 14,317.78 million by 2032, growing at a CAGR of 8.1% during the forecast period (2024–2032).

The semiconductor device, a field programmable gate array (FPGA), comprises a matrix of configurable logic blocks (CLBs) connected by programmable interconnects. FPGAs can be reprogrammed after manufacturing to satisfy certain application or functionality needs. This characteristic sets FPGAs apart from Application Specific Integrated Circuits (ASICs), created specifically for certain design requirements. Despite the existence of one-time programmable (OTP) FPGAs, the most common models are SRAM-based and allow for reprogramming when the design changes.

Most FPGA logic blocks also have memory components, which might be straightforward flip-flops or larger memory blocks. It is possible to reprogramme several FPGAs to implement various logic functions, enabling flexible, reconfigurable computing like that found in software. Due to their ability to begin system software development concurrently with hardware, enable system performance simulations at a very early stage of the development, and permit various system trials and design iterations before finalizing the system architecture, FPGAs play a remarkable role in embedded system development.

Market Dynamics

Global Field Programmable Gate Array Market Drivers

Increasing Demand for IoT

Due to the continuous operation of several sensors, including humidity and temperature sensors, parallel processing is a fundamental advantage of FPGAs. FPGAs are typically more power-efficient for IoT because there is no need to spend time looping and waiting for delays. The number of IoT-connected devices has surpassed the number of non-IoT connection devices for the first time, according to the State of the IoT study. By the end of 2020, 11.7 billion (or 54% of the 21.7 billion connected devices) were Internet of Things connections. This figure is anticipated to exceed 30 billion by 2025 or about 4 IoT devices per person on average.

In addition, the demand for chips to manufacture IoT devices is anticipated to expand along with the sharp rise in IoT devices during the forecast period. For IoT infrastructure, FPGA boards may serve as big data accelerators, thus providing parallel processing. This highlights a hybrid cloud implementation, where the public cloud provides reporting, storage, and presentation. A private FPGA-based cloud implementation performs real-time analytics—such factors fuel market expansion.

Increasing Implementation in Diverse End-User Industries 

The market is anticipated to increase quickly because of the widespread usage of SRAM-based FPGA devices in consumer electronics, wireless communication systems, and military and aerospace applications. Numerous industries, including telecommunication, automotive, consumer electronics, aerospace and defense, healthcare, transportation, etc., can benefit from FPGA. Further, the growing use of FPGA in these sectors offers potential opportunities for market contributors to expand. This reason is boosting the expansion of the global FPGA market.

Global Field Programmable Gate Array Market Restraint

High Power Consumption Compared to ASIC

Power is an important component in the designer's decision-making process in the current marketplace. This change is partly because power translates to significant system costs. As ASICs are intended for a dedicated purpose/application, they offer better speed contrasted performance compared to FPGAs. In addition, ASICs are substantially more power-efficient than FPGAs due to their capacity to control and improve power utilization levels, especially with electronic gadgets that use batteries. FPGAs need more power to perform comparative functions than ASICs.

The demand for portable gadgets has quickly expanded over the last few years. Developing a variety of multiple real-time functionalities in these devices needs the design of millions of gate counts on a single chip. Speed is also a major consideration in these designs. Mixed-signal ASIC chip architecture and low-power transistors like FinFET are quickly gaining popularity to satisfy these objectives. Moreover, technology giants focus on developing power-efficient chips for data centers. These developments pose challenges and restraints for further developing the FPGA market.

Global Field Programmable Gate Array Market Opportunities

Growth Potential in Asia-Pacific

The FPGA market is expanding most rapidly in the Asia Pacific area. The global FPGA market is anticipated to be dominated by nations like China, Japan, and India. The number of manufacturers active in the Asia Pacific FPGA market is rising. These players are obtaining opportunities to grow revenue streams through value grabs. In addition, there are enormous potential opportunities for product producers because of the development of technology and the rising demand for FPGA from customers in these nations.

The global FPGA market's producers are also focusing more on creating high-quality products to meet the demands of the aerospace and military industries. Benefitting opportunities are being created by the developing IT and telecommunications sector and the rising number of data centers in China and India. The demand for FPGA, which is driving the worldwide FPGA market, is also anticipated to be boosted by an established supply chain management system in the Asia-Pacific region. Such factors are expected to create opportunities for market expansion.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global field programmable gate array (FPGA) market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

Asia-Pacific is the most significant global field programmable gate array (FPGA) market shareholder and is anticipated to exhibit a CAGR of 8.5% during the forecast period. The Asia-Pacific market is growing owing to the presence of key countries such as China, Japan, India, and South Korea. China is the largest revenue contributor in the region. China is paving the way for the expansion of the FPGA market, as the country's demand is developing due to its leading position in the global consumer electronics manufacturing industry. In addition, China is the largest manufacturing center in the world, producing 36% of the world's electronics, including smartphones, computers, cloud servers, and telecom infrastructure, establishing the country as the most important node in the global electronics supply chain. Artificial intelligence's (AI) rising prominence in China has created new growth opportunities for the Chinese consumer electronics market. In the next decade, smart homes and IoT (Internet of Things) will undoubtedly represent a significant development opportunity for FPGA manufacturers.

North America is estimated to exhibit a CAGR of 7.3% over the forecast period. Artificial intelligence, quantum computing, and enhanced wireless networks push the semiconductor industry forward, with American companies poised to benefit. The growth of smart cities, which use semiconductors to collect location, direction, and speed data from smartphones to coordinate traffic lights and manage traffic flows, is driving up demand for FPGA in North America. An excessive number of high-definition photographs, videos, and data may be expected in smart cities. This data needs to be collected and processed, which is why FPGA-enabled smart cities are rising. In addition, FPGAs are being investigated extensively in IoT security, image processing, and interfacing with other IoT devices. Vehicles may communicate with traffic signal cameras in the future as they grow more autonomous, allowing them to identify construction and others; hence, 5G is essential. The 5G technology is currently the most hotly contested area in communications, which is why the FPGA market in North America has been rapidly expanding.

The European market is further fragmented into key regions such as Germany, France, the U.K., and the rest of Europe. Germany is expected to witness significant market growth in the FPGA market due to its flourishing data center industry, continuous investments, and initiatives undertaken by the government to augment the industry's growth. The significant increase in colocation service providers' investments in the European colocation market is driving the growth of data centers in Germany. In addition, the data center market in Germany is growing because of the number of cloud service providers and the IT sector. Data centers use FPGAs in volume to provide parallel programmability, which a processor cannot achieve (one customer calls it "programmability at the speed of hardware"). These FPGAs are paired with dedicated function ICs, such as NICs (network interface chips) and network switch chips. Therefore, the factors above propel the market growth in this region.

In Latin America, IoT solutions are expected to have applications in the region's energy, healthcare, and transportation sectors. IoT solutions are expected to combine improved communication networks and existing offline services to increase productivity, reduce waste, and improve regional public service delivery. Brazil is witnessing multiple investments in AI and IoT technologies. For instance, in July 2021, the Brazilian government launched a technology development center focusing on IoT, 5G, and robotics research. Furthermore, in July 2020, Qualcomm Ventures partnered with Brazil's National Bank for Economic and Social Development (BNDES) to launch a fund for Brazilian startups working with Internet of Things (IoT) tech. Such initiatives are expected to further fuel the growth of IoT adoption and support the growth of the FPGA market.

In the Middle East and Africa, the semiconductor industry is steadily growing with support from the government. In December 2021, multiple data centers were launched in the United Arab Emirates, including Oracle and Amazon. Furthermore, every enterprise in the Middle East is looking to build a strategy around modern data protection policy, including cloud, security, and containers, which could positively impact the usage of FPGA solutions.

Segmental Analysis

The globalfield programmable gate array (FPGA) market is segmented by configuration, technology, node size, and end-user industry.

Based on configuration, the global market is bifurcated into low-end FPGA, mid-end FPGA, and high-end FPGA.

The mid-range FPGA segment dominates the global market and is projected to exhibit a CAGR of 7.6% over the forecast period. In the high-end FPGA market, Xilinx (now AMD) and Intel are prominent players, capturing a significant share of use cases. Many other FPGA companies focus on the mid-range and low-end with a lower cost of entry to start competing. Until recently, the small and medium companies did not have the momentum to tackle these giants in the high-end FPGA segment (AMD and Intel). However, the high-end FPGA market represents the largest segment of the FPGA business. Currently, some companies also introduce their products in the high-end FPGA segment. High-end FPGAs of Xilinx and Intel are targeted for their application in 5G infrastructure, AI/ML, automotive, computational storage, compute acceleration, networking, defense and hardware assurance, and testing and measurement.

Based on technology, the global market is bifurcated into SRAM-based FPGA, anti-fuse-based FPGA, and flash-based FPGA, and others.

The SRAM-based FPGA is the most significant contributor to the market share and is anticipated to exhibit a CAGR of 8.3% over the forecast period. Designing low-power SRAM cells is necessary for today's FPGAs, as SRAM is an essential component of FPGA design and consumes most of the total power. SRAM is used in a computer's cache memory and as part of a video card's random-access memory digital-to-analog converter. In addition, SRAM-based FPGAs are created using the CMOS fabrication method, which allows higher power efficiency and logic density than previous technologies, propelling the market forward. The widespread use of SRAM-based FPGAs in military and aerospace applications, telecommunications and wireless communication systems, and consumer goods further fuels segment expansion.

An anti-fuse-based FPGA is the most secure programmable device available. The anti-fuse in these FPGAs can be burned to conduct current. The anti-fuse cannot be changed once it has been ignited. Hence, these FPGA boards can only be programmed once and are not reusable. For instance, Actel's Anti fuse is like fuse technology as it is one-time programmable (OTP). The opposite part of anti-fuse comes from its programming method. Instead of disconnecting the metal connection by passing an electric current, it grows and connects the link.

Based on the end-user industry, the global market is segmented into IT and telecommunication, consumer electronics, automotive, industrial, military and aerospace, telecom, healthcare, and others. 

The military and aerospace segment owns the highest market share and is projected to exhibit a CAGR of 7.5% during the forecast period. Field programmable gate arrays have become common in signal processing boards for defense applications such as radar and sonar. These devices promise even higher performance, especially in communication technologies like software-defined radio. Domestically and abroad, the aerospace and space sectors extensively use FPGAs, particularly in commercial satellites. According to data, FPGAs are used in 60 deep space exploration projects, research and commercial satellites in the US and abroad, and many military satellite programs.

FPGAs can replace older ASIC technologies for industrial applications to provide more cost-effective solutions. As a communication coprocessor, FPGAs are responsible for connecting to Ethernet, and flexible solutions can support different protocols over a single hardware platform. In addition, the FPGA controls the motor. This is easily achieved with an embedded processor, real-time characteristics, and a digital encoder. Further, Industry 4.0 relies on connection and autonomous operation to construct robust industrial IoT applications. Industrial system designers can use FPGA industrial automation solutions to drastically cut costs and time to market for factory automation system designs.

Recent Developments

• November 2022- Innodisk introduced an embedded development board for the embedded computer vision market, which features an AMD Xilinx Kria K26 field-programmable gate array (FPGA) system-on-module (SOM) as four USB 3.1 Gen 1 interface and two M.2 expansion slots.
• December 2022- Lattice introduced a family of low-power FPGAs with a compact form factor. The company stated that the new FPGA platform is designed specifically for low-power peripheral computing applications.