Application Specific Integrated Circuit Market

Application Specific Integrated Circuit Market Size:

The global application specific integrated circuit market size reached US$ 16.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 25.4 Billion by 2032, exhibiting a growth rate (CAGR) of 5% during 2024-2032. The market is driven by the rising utilization of various smart electronic devices, growing popularity of smartwatches for real-time tracking of physical activities, increasing adoption of mechatronics across industrial and automotive applications, and the escalating demand for ASIC in consumer electronics and telecommunication equipment.

Application Specific Integrated Circuit Market Analysis:

• Major Market Drivers: The growth in the market is largely driven by advancements in technology, including the rising demand for high-performance computing and the increasing use of ASICs in consumer electronics. Also, the need for energy efficiency and cost reduction in electronics also propels market expansion, as ASICs offer tailored solutions that optimize performance and minimize power consumption.
• Key Market Trends: A key trend in the market is the paradigm shift towards custom-designed ASICs to meet specific industry needs and the integration of artificial intelligence (AI) and machine learning capabilities into ASICs for enhanced performance. Another notable trend that is contributing to the application specific integrated circuit market growth is the adoption of 5G technology, which drives demand for high-speed data processing and communication ASICs. Additionally, an enhanced focus on miniaturization and enhanced functionality within compact devices is also an emerging trend.
• Geographical Trends: North America is leading the market due to its robust technological infrastructure and significant investment in R&D. The presence of major semiconductor companies and a strong consumer electronics market is further bolstering North America's dominance. However, Asia-Pacific is also witnessing rapid growth driven by increased electronics manufacturing and consumer demand in countries like China and India. This, in turn, is expected to contribute significantly to the application specific integrated circuit demand.
• Competitive Landscape: Some of the key market players include Analog Devices Inc., Infineon Technologies AG, Intel Corporation, Maxim Integrated Products Inc., NXP Semiconductors N.V, ON Semiconductor, Qualcomm Incorporated, Renesas Electronics Corporation, STMicroelectronics N.V, and Texas Instruments Incorporated. These companies are heavily involved in innovation and strategic partnerships to maintain their market positions.
• Challenges and Opportunities: Some of the challenges in the market include the high cost of ASIC design and production, coupled with the complexity of the design process, which demands significant expertise and resources. These factors can restrict accessibility for smaller companies, making it difficult for them to compete effectively. However, opportunities exist in developing niche ASIC applications for emerging technologies such as AI, 5G, and IoT. Additionally, the growing demand for customized solutions presents an avenue for market growth and expansion.
   

Application Specific Integrated Circuit Market Trends:

Increasing product demand in consumer electronics and diverse industry applications

The rising product demand in consumer electronics, such as smartphones, smartwatches, and tablets, among other products is bolstering the market. An ASIC is an integrated circuit that has been precisely developed to suit a specific application or purpose. These circuits allow for total assimilation of the entire system by integrating the functionality of numerous smaller and medium-sized integrated circuits into a single chip, assuring alignment with system requirements. As a result, integrated circuits are widely used in a variety of industries, including automotive, telecommunications, electrical and electronics, and medical. This, in turn, is expected to offer numerous application specific integrated circuit market recent opportunities.

Growing customization, efficiency, and high-volume production needs

Application-specific integrated circuits (ASICs) are customized integrated circuits (ICs) designed to meet certain criteria specifically. The IC is built and designed with applications and requirements in mind. ASIC is highly recommended for high volume production; therefore, it is widely utilized in several industries, such as manufacturing, automotive, and industrial, among others. Application-specific integrated circuits help to reduce chip size as they may execute numerous functionalities on a single chip. This is anticipated to increase demand for ASIC and exhibit a positive application specific integrated circuit market overview.

Increasing usage of ASIC technology in aerospace applications

ASICs are rapidly being employed in a variety of aircraft applications, including cockpit illumination control to correct for sunlight to night vision, onboard data handling protocols, and high-speed, high-accuracy accelerometer processing for inertial steering. Therefore, an increase in the use of ASIC technology in aerospace applications is expected to drive the market throughout the forecast period. The use of a field programmable gate array (FPGA) has several benefits for logic solutions in aeronautical applications. It offers excellent performance, powerful IP-like microprocessors, and memory interfaces in programmable devices. It may make these programmable devices more appealing for aerospace applications.

Furthermore, ASIC chips are utilized for aviation or marine security identification to verify that the bearer has passed the security screening. Some companies manufacture ASIC especially for aerospace applications. For instance, Honeywell International Inc. has developed custom ASICs of up to 15M gates. In addition, favorable government regulations are bolstering the adoption of advanced technologies, which is fueling the aerospace industry's growth. This, in turn, is leading to numerous application specific integrated circuit market recent developments.

Application Specific Integrated Circuit Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on product type and application.

Breakup by Product Type:

• Full Custom ASIC
• Semi-Custom ASIC (Cell Based)
• Semi-Custom ASIC (Array Based)
• Programmable ASIC
   

Semi-custom ASIC (cell based) dominates the market

The report has provided a detailed breakup and analysis of the market based on the product type. This includes full custom ASIC, semi-custom ASIC (cell based), semi-custom ASIC (array based), and programmable ASIC. According to the report, semi-custom ASIC (cell based) represented the largest segment.

Within the semi-custom ASIC segment, the cell-based semi-custom ASIC sub-category had the highest share, accounting for the majority of global revenue. This can be linked to its digital-logic and electrical properties, which include inductance and capacitance. Such features offer higher electrical performance and component density. Furthermore, as advanced static random-access memory and internet protocol cores are integrated, cell-based ASICs are versatile and may be used across a wide range of products, regardless of design complexity, allowing for seamless system functionality. Unlike full custom ASICs, cell-based semi-custom ASICs use pre-designed logic cells, reducing development time and cost. This approach offers a compromise between customization and affordability, making it an attractive option for companies that need tailored solutions without the prohibitive costs associated with full custom designs, further contributing to their dominance in the market.

Breakup by Application:

• Telecommunication
• Automotive
• Consumer Electronics
• Others
   

Consumer electronics hold the largest share in the market

A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes telecommunication, automotive, consumer electronics, and others. According to the report, consumer electronics accounted for the largest market share.

The consumer electronics industry holds a sizable global market share and contributes to the positive application specific integrated circuit market outlook. This vertical is positioned to provide lucrative growth opportunities for all value chain stakeholders, owing primarily to the increasing use of application-specific integrated circuits in smartphones, tablets, and laptops around the world. ASICs provide numerous benefits, including low power consumption, IP security, compact size, and increased bandwidth. These integrated circuits are widely used in a variety of industries, including telecommunications, industrial, and healthcare, in addition to consumer electronics. Additionally, the rapid innovation cycle in consumer electronics drives the need for tailored solutions that can deliver specific functionalities, such as advanced graphics, high-speed connectivity, and enhanced battery life. The large-scale production and widespread adoption of consumer electronics further amplify the demand for ASICs in this segment, solidifying its position as the largest market share holder.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest application specific integrated circuit market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for application specific integrated circuit.

The North America region has emerged as a dominant force in the market during application specific integrated circuit market forecast period, resulting in a significant revenue share. This remarkable growth can be attributed to several key factors propelling the demand for ASICs in the region. There is a rising need for energy-efficient devices, driven by the region's rapid economic growth and rapid industrialization. Moreover, the growth of smartphones in the region is contributing significantly to market expansion. The rising penetration of these devices is creating a positive environment for ASIC market growth. Factors such as the ongoing process of digitization, the escalating adoption of high-tech gadgets, advancements in automotive electronics, and growing demand for miniaturization are also bolstering the market growth.

Competitive Landscape:

• The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include Analog Devices Inc., Infineon Technologies AG, Intel Corporation, Maxim Integrated Products Inc., NXP Semiconductors N.V, ON Semiconductor, Qualcomm Incorporated, Renesas Electronics Corporation, STMicroelectronics N.V, and Texas Instruments Incorporated.
  
  (Please note that this is only a partial list of the key players, and the complete list is provided in the report.)
   
• Prominent application specific integrated circuit companies are reputed entities that are actively focusing on research and development initiatives to strengthen their market presence. Prominent application-specific integrated circuit (ASIC) companies are investing in advanced design technologies and expanding their production capacities to ensure market growth. They are focusing on developing more energy-efficient and high-performance ASICs to cater to the growing demand in sectors like consumer electronics, automotive, and telecommunications. Additionally, these companies are forming strategic partnerships and collaborations with industry leaders to enhance their design capabilities and accelerate time-to-market for new products. By adopting flexible and scalable manufacturing processes, they are also reducing production costs and improving accessibility for a wider range of customers, including smaller companies. They are also forming strategic partnerships with other tech firms and industry leaders for expanding market reach, thereby contributing to application specific integrated circuit market revenue.

Application Specific Integrated Circuit Market News:

• September 20, 2023: Intel announced its plans to develop an application specific integrated circuit (ASIC) accelerator to reduce the performance overhead associated with fully homomorphic encryption (FHE) and will release the beta version of an encrypted computing software toolkit for developers later this year.

Application Specific Integrated Circuit Market Report Scope:

Key Questions Answered in This Report:

• How has the global application specific integrated circuit market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global application specific integrated circuit market?
• What is the impact of each driver, restraint, and opportunity on the global application specific integrated circuit market?
• What are the key regional markets?
• Which countries represent the most attractive application specific integrated circuit market?
• What is the breakup of the market based on the product type?
• Which is the most attractive product type in the application specific integrated circuit market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the application specific integrated circuit market?
• What is the competitive structure of the global application specific integrated circuit market?
• Who are the key players/companies in the global application specific integrated circuit market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the application specific integrated circuit market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global application specific integrated circuit market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the application specific integrated circuit industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.