Application Specific Integrated Circuit Market

• Rising consumer electronics industry is driving the market growth

Due to their advantageous characteristics, including lower power consumption, higher integration, intellectual property protection, and higher functionality, the demand for ASICs has risen over the past few decades. The market CAGR for application-specific integrated circuits (ASICs) is also growing due to increased investment in developing 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 address the needs of the product specifications.

With ASIC, a large portion of the total design can be included in a single integrated circuit, lowering the number of additional components. As a result, ASICs are frequently employed in high-volume goods like cell phones and office supplies.

Additionally, the increasing use of electronics across different automotive modules primarily supports the demand for ASICs in the automotive sector. The most significant factor fueling segment growth is the steadily rising automotive industry globally. With the rising discretionary income of people worldwide, especially in the Asia Pacific region, the industry is estimated to continue witnessing steady growth in the coming years. This would significantly fuel the overall application-specific integrated circuit market revenue in the coming years.

The Global Application Specific Integrated Circuit Market Industry is projected to witness substantial growth, with estimates suggesting a market size of 47.1 USD Billion by 2035. This growth trajectory reflects the increasing reliance on specialized circuits across various sectors, including consumer electronics, automotive, and telecommunications. The anticipated compound annual growth rate (CAGR) of 7.83% from 2025 to 2035 indicates a robust demand for ASICs, driven by technological advancements and evolving consumer needs. As industries continue to innovate and integrate ASICs into their products, the market is poised for significant expansion in the coming years.

The Global Application Specific Integrated Circuit Market Industry is experiencing growth due to the increased focus on Internet of Things (IoT) applications. As industries adopt IoT solutions for enhanced connectivity and automation, the demand for ASICs tailored for specific applications is rising. These circuits enable efficient data processing and communication in smart devices, industrial automation, and smart home technologies. The growing adoption of IoT is likely to drive the market forward, with ASICs playing a critical role in ensuring seamless integration and functionality across various platforms. This trend indicates a promising future for ASICs in the expanding IoT landscape.

The Global Application Specific Integrated Circuit Market Industry is significantly influenced by advancements in automotive technology, particularly the rise of electric and autonomous vehicles. As the automotive sector evolves, the integration of ASICs becomes crucial for functionalities such as advanced driver-assistance systems (ADAS) and infotainment systems. The increasing complexity of automotive electronics is expected to drive the demand for specialized circuits, potentially contributing to the market's growth. By 2035, the automotive segment is anticipated to play a pivotal role in the overall market expansion, reflecting the industry's shift towards smarter, more efficient vehicles.

The Global Application Specific Integrated Circuit Market Industry is experiencing a surge in demand driven by the proliferation of consumer electronics. With the global consumer electronics market projected to reach 20.6 USD Billion in 2024, the need for efficient and specialized circuits is paramount. Application specific integrated circuits (ASICs) are increasingly utilized in smartphones, tablets, and wearable devices, enhancing performance and energy efficiency. This trend is likely to continue as manufacturers seek to differentiate their products in a competitive landscape, suggesting a robust growth trajectory for ASICs in the consumer electronics sector.

The Global Application Specific Integrated Circuit Market Industry is witnessing growth in emerging markets, where technological advancements and increased investments are fostering demand for specialized circuits. Regions such as Asia-Pacific are becoming key players in the ASIC market, driven by rising manufacturing capabilities and a growing consumer base. As these markets continue to develop, the demand for ASICs in various applications, including telecommunications and consumer electronics, is expected to rise. This regional expansion could contribute to the overall market growth, indicating a shift in the global dynamics of the ASIC industry.

The Global Application Specific Integrated Circuit Market Industry is bolstered by the expansion of telecommunications infrastructure, particularly with the rollout of 5G technology. ASICs are essential in optimizing network performance and managing data traffic efficiently. As global investments in telecommunications infrastructure increase, the demand for ASICs is likely to rise correspondingly. The transition to 5G networks is expected to create new opportunities for ASIC manufacturers, potentially leading to a compound annual growth rate (CAGR) of 7.83% from 2025 to 2035. This growth underscores the importance of ASICs in supporting next-generation communication technologies.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific application-specific integrated circuit market will dominate, owing to an increase in the growth attributed to the rapidly increasing demand for energy-efficient devices and the rising penetration of smartphones in the Region. This will boost the market growth in this Region. Moreover, China's application-specific integrated circuit market held the largest market share, and the Indian application-specific integrated circuit market was the fastest-growing market in the Asia-Pacific region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure2: GLOBAL APPLICATION SPECIFIC INTEGRATED CIRCUIT MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Europe's application-specific integrated circuit market accounts for the second-largest market share due to technological advancements such as temperature sensors and power management in devices, including smartphones, household appliances, wireless headphones, and speakers are increasing the incorporation of ASICs in the systems. Further, the German application-specific integrated circuit market held the largest market share, and the UK application-specific integrated circuit market was the fastest-growing market in the European Region.

The North American application-specific integrated circuit market is expected to grow at the fastest CAGR from 2024 to 2032. This is due to the growth is attributed to the significant presence of prominent players in the Region, including Maxim Integrated Products Inc.; Qualcomm Inc.; Intel Corporation; and Texas Instruments Inc.

Leading market players are investing heavily in research and development to expand their product lines, which will help the application-specific integrated circuit market grow even more. Market participants are also undertaking various strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The application-specific integrated circuit industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer’s uses in the global application-specific integrated circuit industry to benefit clients and increase the market sector. In recent years, the Application Specific Integrated Circuit Industry has offered some of the most significant advantages to the IT industry.

Major players in the application specific integrated circuit market, including Intel Corporation (U.S.), Texas Instruments Inc. (U.S.), STMicroelectronics N.V (Switzerland), Infineon Technologies AG (Germany), Renesas Electronics Corporation (Japan), Maxim Integrated Products Inc. (U.S.), Analog Devices Inc.(U.S.), ON Semiconductor (U.S.), NXP Semiconductors N.V (The Netherlands), Qualcomm Inc. (U.S.), Linear Technology Corporation (U.S.) and others, are attempting to increase market demand by investing in research and development operations.

Onsemi is an American semiconductor supplier company based in Phoenix, Arizona, and ranked 483 on the 2022 Fortune 500 based on its 2021 sales. Semi is driving disruptive innovations to help build a better future. With a focus on automotive and industrial end-markets, the company is accelerating change in megatrends such as vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure. With a highly differentiated and innovative product portfolio, onsemi creates intelligent power and sensing technologies that solve the world’s most complex challenges and create a safer, cleaner, and smarter world.

Onsemi introduced a trio of USB Power Delivery (PD) design products. The new drivers and controllers integrate novel features that significantly lower the material content of high-efficiency DC/AC power supplies, particularly for load ranges greater than 100W.

OmniVision Technologies Inc. is an American subsidiary of the Chinese semiconductor device and mixed-signal integrated circuit design house Will Semiconductor. Founded in 1995, OmniVision has been at the leading edge of technology, developing and delivering advanced digital imaging, analog, and touch & display solutions for multiple applications across several industries. With more than 3,000 employees worldwide and over 13 billion products shipped, OmniVision is a well-known global fabless semiconductor company. OmniVision partnered with Valens Semiconductor to develop a MIPI A-PHY standard-compliant camera solution, which is expected to find wide-scale applications in the automobile industry.