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The Application-Specific Integrated Circuit (ASIC) Market is characterized by dynamic forces stemming from technological advancements, industry-specific demands, and competitive landscapes. ASICs are specialized chips designed to perform dedicated functions, and their market dynamics are intricately linked to the evolving needs of various industries relying on customized semiconductor solutions.
One of the primary drivers influencing the ASIC market dynamics is the relentless pace of technological innovation. As industries such as telecommunications, automotive, and healthcare continue to advance, there is a growing demand for highly specialized and efficient integrated circuits. ASICs, being tailored for specific applications, offer unparalleled performance and power efficiency compared to general-purpose chips. The ongoing quest for more compact, powerful, and energy-efficient solutions fuels the demand for ASICs across diverse sectors.
Industry-specific demands play a crucial role in shaping the dynamics of the ASIC market. Different sectors have unique requirements, and ASICs cater to these by providing customized solutions. For instance, in the automotive industry, ASICs are employed for tasks like advanced driver assistance systems (ADAS) and in-vehicle infotainment, requiring specialized processing capabilities. This trend extends to other sectors like healthcare, where ASICs are utilized in medical imaging devices and diagnostic equipment. The market dynamics are, therefore, influenced by the specific needs and challenges of each industry.
Cost considerations are significant factors in the ASIC market dynamics. While ASICs offer unparalleled performance for targeted applications, the development and manufacturing costs associated with custom chip designs can be substantial. Manufacturers must carefully weigh the benefits of application-specific customization against the expenses involved, especially in markets where cost efficiency is paramount. The challenge lies in finding a balance between delivering high-performance solutions and ensuring economic viability for both manufacturers and end-users.
Competition is fierce within the ASIC market, with established players and emerging companies vying for market share. Companies differentiate themselves through expertise in specific application domains, innovation in design methodologies, and time-to-market efficiency. Strategic partnerships and collaborations are common as manufacturers seek to pool resources, share expertise, and enhance their overall competitiveness in a rapidly evolving landscape.
Regulatory compliance and standards are integral components of the ASIC market dynamics. As ASICs are often embedded in critical systems, adherence to industry standards and regulations is paramount. Compliance with standards ensures interoperability, reliability, and safety, particularly in sectors such as aerospace, defense, and industrial automation. Manufacturers need to navigate these regulatory landscapes to build trust with customers and meet industry-specific requirements.
Environmental considerations also influence the ASIC market dynamics. With a growing emphasis on sustainability and energy efficiency, manufacturers are under increasing pressure to develop ASICs that minimize environmental impact. This includes optimizing power consumption, reducing electronic waste, and adopting eco-friendly manufacturing practices.
Consumer preferences and emerging trends contribute to the dynamics of the ASIC market. As consumers demand more advanced features and capabilities in electronic devices, manufacturers must anticipate and adapt to these trends. Whether it's the integration of ASICs in smartphones, smart home devices, or wearable technology, understanding consumer needs and staying ahead of market trends is crucial for success.
Opportunities are emerging in the global ASIC market at a regional level. To better understand current trends, an analysis has been conducted on automotive sensors and their connection to internet protocol cores. This assessment aims to ensure smooth functioning. It is evident that this market optimizes operations and employs strategies to sustain competition effectively. The primary driving force behind its application is the increasing demand from the consumer electronics segment. Additionally, key market analysis has set standards for cell divergence and assessed its fundamental impact on the global application.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Segment Outlook | Product Type, Application, and Region |
Application Specific Integrated Circuit Market Highlights:
Global Application-Specific Integrated Circuit Market Overview:
Application Specific Integrated Circuit Market Size was valued at USD 18.857 Billion in 2023. The Application Specific Integrated Circuit industry is projected to grow from USD 20.554 Billion in 2024 to USD 37.573 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.83% during the forecast period (2024 - 2032). The growing demand for ASIC in the consumer electronics sector owing to the energy-efficient solutions and the global demand increase due to the growing use of application-specific integrated circuits (ASICs) in consumer electronics such as smartphones are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Application-Specific Integrated Circuit Market Trends
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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.
Application-Specific Integrated Circuit Market Segment Insights:
Application-Specific Integrated Circuit Product Type Insights
The Application-Specific Integrated Circuit Market segmentation, based on product type, includes full custom, semi-custom, and programmable designs. The semi-custom segment held the largest market share of 48.0% in 2022 and is also anticipated to dominate the market for application-specific integrated circuits over the forecast period. The growth is attributed to its low complexity and wide scope of applications compared to other segments. The full-custom ASIC segment is expected to register considerable growth. These ICs provide faster and more reliable performance with intellectual property protection using less electrical power. Besides, the full custom ASIC allows designers to customize logic cells, mechanical structures, layouts, and circuits and optimize memory cells on an IC, which helps to decrease processing time and risks. However, due to its complex design, the manufacturing time for these application-specific integrated circuits is eight weeks for a specific application, which is more than semi-custom ASICs.
Figure1: Global Application Specific Integrated Circuit Market, By Product Type, 2022 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Application-Specific Integrated Circuit Application Insights
Based on application, the Application-Specific Integrated Circuit Market segmentation includes IT & Telecommunication, industrial, automotive, and consumer electronics. The consumer electronics segment accounted for over 34.0% of the global market share in 2022. The consumer electronics vertical is anticipated to offer significant growth opportunities for all the players involved in the value chain on the back of the increasing use of ASICs within phones, tablets, and laptops across the globe. These ASICs offer various advantages, including low power consumption, IP security, small size, and higher bandwidth, leading to increased adoption of ICs in the consumer electronics industry. Moreover, the rapid advancement of electronic devices enables stable performance and energy efficiency, propelling the application-specific integrated circuit market growth. Besides the consumer electronics vertical, these ICs are used in multiple verticals such as telecommunication, industrial, and healthcare. The consumer electronics segment accounted for over 34.0% of the global market share. The consumer electronics vertical is anticipated to offer significant growth opportunities for all the players involved in the value chain on the back of the increasing use of ASICs within phones, tablets, and laptops across the globe. These ASICs offer various advantages, including low power consumption, IP security, small size, and higher bandwidth, leading to increased adoption of ICs in the consumer electronics industry. Moreover, the rapid advancement of electronic devices enables stable performance and energy efficiency, propelling the application-specific integrated circuit market growth. Besides the consumer electronics vertical, these ICs are used in multiple verticals such as telecommunication, industrial, and healthcare.
Application-Specific Integrated Circuit Regional Insights
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.
Application-Specific Integrated Circuit Key Market Players & Competitive Insights
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.
Key Companies in the Application Specific Integrated Circuit market include
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Intel Corporation (U.S.)
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Texas Instruments Inc. (U.S.)
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STMicroelectronics N.V (Switzerland)
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Infineon Technologies AG (Germany)
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Renesas Electronics Corporation (Japan)
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Maxim Integrated Products Inc. (U.S.)
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Analog devises Inc.(U.S.)
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ON Semiconductor (U.S.)
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NXP Semiconductors N.V (The Netherlands)
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Qualcomm Inc. (U.S.)
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Linear Technology Corporation (U.S.)
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Brunswick Corporation
Application-Specific Integrated Circuit Industry Developments
February 2022: Researchers at MIT developed an application-specific integrated circuit (ASIC) chip that can be implemented on the Internet of Things devices to defend against power-based side-channel attacks. The team's chip is based on a particular type of computation known as threshold computing. Rather than holding a neural network operating on actual data, the data is first split into unique, random components. The network operates on the random components individually, in a random order, before accumulating the final result.
June 2021: Taiwan-based IC design houses reported that they are optimistic about their shipments for smartphone applications in the third quarter of 2021 due to the upcoming rollouts of new 5G-enabled models, particularly by Chinese brands. Most IC vendors expect their order volumes to increase by over 10% sequentially in the third quarter, and revenues of related vendors will also see significant increases as quotes for 5G chips are generally higher than those for 4G applications. The analog IC vendors also insisted that their shipment targets of 5G chips for 2021 remain unchanged as they expect global 5G phone shipments to grow exponentially in 2021 and 2022.
Application-Specific Integrated Circuit Market Segmentation:
Application Specific Integrated Circuit Product Type Outlook
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Full Custom Design
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Semi-Custom Design
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Programmable
Application Specific Integrated Circuit Application Outlook
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It & Telecommunication
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Industrial
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Automotive
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Consumer Electronics
Application-Specific Integrated Circuit Regional Outlook
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North America
- US
- Canada
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Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
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Asia-Pacific
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China
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Japan
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India
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Australia
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South Korea
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Australia
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Rest of Asia-Pacific
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Rest of the World
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Middle East
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Africa
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Latin America
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