Integrated Circuits Market Size (2024 - 2030)

The Global Integrated Circuits Market was valued at USD 635.74 billion in 2023 and is projected to reach a market size of USD 1496.57 billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 13.01%. 

Integrated circuits (ICs) are semiconductor components that are created by connecting devices. These devices offer cost-efficient solutions compared to using individual components to achieve the same functionality. The Global Integrated Circuit Market is driven by the growing demand, for cutting-edge gadgets and the rapid expansion of smartphones, tablets, and other smart devices. The IoT (Internet of Things) growing in popularity. Intelligence (AI) technologies further fuel the need for high-performance ICs. Additionally, advancements in electronics, such as vehicles and autonomous driving systems provide significant learning opportunities for IC manufacturers. However, there are challenges related to miniaturization and the increasing complexity of IC design, which can lead to production costs. Moreover, international uncertainties and disruptions in supply chains impact the industry stability. Despite these limitations the integration of ICs in emerging applications like 5G technology augmented reality and wearable devices offers opportunities, for market growth fostering innovation and new product development.

Key Market Insights:

Regional governments are providing increased support to foster the growth of their integrated circuit (IC) industry. Take China for example which has been actively expanding its fabrication capacities, driven by the introduction of the China Integrated Circuit Investment Fund. According to SEMI China, these investments have yielded results with China’s market share, in wafer fabrication capacity jumping from 9% in 2010, to 17% in 2020.

The rapid advancement of technologies, like the Internet of Things (IoT) cloud computing, and big data is expected to drive the evolution of circuit technology, toward horizons.

Regional governments are providing increased assistance to foster the growth of their integrated circuit (IC) industry. A notable example is China, which has been actively expanding its fabrication capacities, fueled by the establishment of the China Integrated Circuit Investment Fund. According to SEMI China, these investments have yielded results with China’s market share, in wafer fabrication capacity rising from 9% in 2010, to 17% in 2020.

According to the edition of the IEAs Global Electric Vehicle Outlook, more, than 10 million electric vehicles will be sold worldwide in 2022. This year sales are estimated to rise by 35% to reach a total of 14 million. The rapid growth in electric vehicle sales has led to an increase in their market share going from 4% in 2020 to 14% in 2022. It is predicted that this share will further climb to reach 18% by the end of this year as, per the IEA forecasts.

Integrated Circuits Market Drivers:

To encourage healthy growth, the use of smartphones has increased significantly, and the industrial sectors have been steadily developing mechatronics.

In today’s world, many IC manufacturers are focusing on meeting the needs of their customers to expand their product’s reach in the market and increase its appeal. They are developing custom integrated circuits that can provide all the components, on a single chip. According to data published by the Semiconductor Industry Association (SIA) semiconductor sales experienced a growth of around 24% in October 2021 reaching an impressive $49 billion compared to the same month last year. This remarkable growth has contributed $400 million to the industry showing performance in the market for the foreseeable future. Furthermore, the deployment of telecommunication networks, like 5G services requires a comprehensive transformation of infrastructure setup. The increasing use of quantum computing and artificial intelligence is expected to be a factor driving market growth over time.

Increased usage of IoT-connected devices and data traffic resulting in the expansion of the global ICs Market.

The market is predicted to experience growth due, to the increasing usage of connected devices and the subsequent rise in data traffic. The adoption of integrated circuit (IC) components such as magnitude comparators and priority encoders not only meets customer demands but also offers benefits like high-speed data processing, reduced power consumption, and enhanced audio and video signal processing, among others. According to Ericsson mobility research, India’s monthly mobile data traffic is expected to increase from 9.4EB to 12EB in 2021. This surge in data usage will drive the demand for ICs thereby strengthening the outlook, for the ICs sector.

Integrated Circuits Market Restraints and Challenges:

Deterrents to market sales include low chances of repair or refabrication and the inability to function at a low-temperature coefficient.

An integrated circuit functions, as a collection of units housed on a semiconductor material like silicon. This configuration allows for reduced size. Simplified assembly of components in various devices. However, if any component within the IC chip malfunctions the entire chip needs to be replaced as repairing or modifying the circuit is not feasible. Consequently, this increases maintenance costs associated with devices. Additionally, integrated circuits may not perform well in environments or freezing temperatures due to their ability to achieve low-temperature coefficients. Furthermore, improper installation or careless handling can hinder their effectiveness as they are not very flexible. Excessive heat exposure can also lead to failure making them unsuitable for operation, in high-temperature conditions. Both analog and digital ICs have limitations when it comes to voltage operation and minimizing noise. They are designed to handle an amount of power so extending their capabilities becomes necessary when dealing with high-powered events.

Integrated Circuits Market Opportunities:

The forecast period anticipates a chance, for market expansion thanks to the automotive sector. Integrated circuits (ICs) play a role in vehicle components such as ADAS, in vehicle networking, engine management, transmission control systems, and infotainment. In 2021 according to the ACEA, the global production of motor vehicles reached 79.1 million units indicating a 1.3% increase compared to 2020. As a result, the industry’s growth presents an opportunity, for market development.

INTEGRATED CIRCUITS MARKET REPORT COVERAGE:

Integrated Circuits Market Segmentation:

Integrated Circuits Market Segmentation: By Type

• Digital IC
• Analog IC
• Mixed-Signal IC

In 2022, based on the type, the market is projected to be dominated by the Analog IC segment in the coming years. This dominance can be attributed to the range of applications, for analog ICs. Analog integrated circuits are used in the design of amplifiers, linear regulators, oscillators, active filters, and phase-locked loops. These circuits operate with signals that vary over time and require components. They play a role in creating circuits such as voltage comparators and amplifiers. As a result, we anticipate the fastest growth, in this segment throughout the forecast period.

Integrated Circuits Market Segmentation: By Product Type

• General-Purpose IC
• Application-Specific IC

In 2022, based on the product type, the application-specific IC segment is anticipated to capture the market share during the projected timeframe. ASICs, also known as Application Specific Integrated Circuits are a type of circuit designed specifically for a use or application. They are optimized to perform a task effectively surpassing programmable logic devices or conventional logic integrated circuits in terms of speed. Moreover, ASICs can be made smaller, in size. Consume power. They find applications in fields such, as personal digital assistants, emission control, and environmental monitoring. As a result, this segment is expected to experience the fastest growth throughout the forecast period.

Integrated Circuits Market Segmentation: By Industry Vertical

• Consumer Electronics
• Automotive
• IT & Telecommunications
• Manufacturing and Automation
• Healthcare
• Aerospace & Defense
• Others

In 2022 the global circuit market is divided into sectors, such, as Consumer Electronics, Automotive, IT & Telecommunications, Manufacturing and Automation Healthcare, Aerospace and defense, and others. The consumer electronics industry is expected to have a position in the market in the coming years. This can be attributed to the use of chips (ASICs) in smartphones, tablets, and laptops. These chips offer advantages like power consumption enhanced IP security, compact size, and improved bandwidth. As a result of these benefits, there has been an increase in their utilization, within the consumer electronics sector. Furthermore, the continuous advancement of devices has also led to improved performance and energy efficiency driven by application integrated circuits (ASICs).

Integrated Circuits Market Segmentation: Regional Analysis:

• North America
• Asia-Pacific
• Europe
• South America
• Middle East and Africa

In 2022 the North American market saw dominance and held about 36% of the total share. The reason, behind this was the established healthcare infrastructure and continuous advancements in healthcare devices and equipment. Medical tools such as pacemakers, ultrasound machines, and insulin pumps heavily rely on integrated circuits (ICs) for signal processing, monitoring signs, and administering medication. ICs play a role in enabling the development of advanced medical equipment. Thanks to these ICs the healthcare sector has witnessed improvements and advancements that have led to efficient healthcare solutions. With the increasing prevalence of diseases, there is a growing demand, for pacemakers, which will drive market expansion throughout the forecast period.

Based on data, from the CDC it is estimated that 697,000 individuals in the United States lose their lives to heart disease each year accounting for 1 out of every 5 deaths. Consequently, the growing utilization of devices for treating illnesses is anticipated to stimulate market expansion, in this region throughout the projected timeframe.

The forecast period anticipates the Asia Pacific region to experience a growth rate. This growth can be attributed to the thriving consumer electronics industry and the expanding automotive sector. Revenue, from circuits primarily comes from countries such as India and China driven by their industrial growth. ICs are widely utilized in products, within the consumer electronics and automotive industries, including tablets, smartphones, televisions, laptops, home appliances, infotainment systems, and ADAS technologies.

COVID-19 Impact Analysis on the Global Integrated Circuits Market:

The global COVID-19 pandemic has had an impact, on prominent economies leading to a severe shortage of cash and reduced liquidity. As a result, investors and manufacturers have adopted an approach, which has slowed down the growth rate of the market. Furthermore, the trade restrictions, on commodities being transported across borders have had an impact on the global sales of integrated circuits (ICs) produced by manufacturers in the Asia Pacific region. This disruption in the semiconductor value chain and supply chain caused by the pandemic has greatly hindered market growth. Moreover, prolonged limitations on manufacturing operations and unexpected shutdowns of production clusters have resulted in a shortfall between supply and demand thereby limiting the possibilities, for market expansion.

Latest Trends/ Developments:

The demand, for products is experiencing a surge due to the research and development initiatives undertaken by players in the industry like driver assistance systems. Furthermore, the growing utilization of IoT-based devices has created a need for analog ICs, digital ICs, and microcontroller sensors, in automated equipment and IoT devices. As an example, there are endeavors to incorporate cutting-edge entertainment and information setups or accurate GPS tracking and navigation systems into installations. These advancements are expected to drive the demand and sales of microcontrollers (MCUs). Moreover, the sales of vehicles have seen an increase due to fluctuating fuel prices and government subsidies aimed at boosting EV sales. The manufacturing of vehicles is a factor that is expected to open up new growth opportunities for the market. Automotive infotainment systems are predicted to hold a 10% market share while other components of vehicles are estimated to represent 90% of microcontroller sales. These other components include driver assistance systems, power windows, engine controls, battery management systems, electric steering, and power brakes, among others.

The increasing popularity of self-driving vehicles, with the use of sensors and integrated circuit devices, for easier control will greatly impact the global market in different regions.

Key Players:

1. Analog Devices Inc
2. Texas Instruments Inc
3. Intel Corporation
4. Infineon Technologies AG
5. NXP Semiconductors N.V.
6. STMicroelectronics N.V.
7. On Semiconductor Corporation
8. Renesas Electronics Corporation
9. Microchip Technology Inc
10. MediaTek Inc.

In February 2023 Semtech Corporation, a company that specializes in high-performance semiconductors, IoT systems, and Cloud connectivity services made an announcement, about its collaboration with Shanghai Fudan Microelectronics Group Co., Ltd. The purpose of this partnership is to introduce the MCU+SX126x reference design. This reference design aims to provide cost solutions for customers working in areas such, as instrumentation, fire prevention and security environmental monitoring, and various other applications.

In August 2022 Toshiba Electronic Devices & Storage Corporation expanded its range of stepping motor driver ICs by introducing the "TB67S549FTG." This new IC, designed in a package and featuring built-in current regulation eliminates the need, for additional circuit components. It is ideal for equipment such, as office automation and banking equipment offering the advantage of saving space on circuit boards.