Global Fabless IC Market Overview:
Fabless IC Market Size was valued at USD 1,05,018.6 million in 2023. The Fabless IC Market industry is projected to grow from USD 1,17,620.8 million in 2024 to USD 4,39,469.8 million by 2032, exhibiting a compound annual growth rate (CAGR) of 17.9% during the forecast period (2024- 2032). The fabless chip business model enables companies to design and sell semiconductors used in everything from smartphones to vehicles to medical devices without having to manufacture them. Fabless chipmakers make and sell semiconductors for smartphones, computers, medical devices, and many other electronic devices. They decide how to assemble and sell semiconductor chips but they’re not (fab) so they’re fableless. That work is assigned to a factory specializing in the most sophisticated and capital-intensive manufacturing processes.
FIGURE 1: Fabless IC Market SIZE 2019-2032 (USD MILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Fabless IC Market Trends
INTEGRATION OF AI AND MACHINE LEARNING TECHNOLOGIES IN SEMICONDUCTOR DESIGN
Incorporating AI and machine learning technology into semiconductor design offers major advantages for the fabless IC market. The need for chips designed for artificial intelligence is increasing rapidly. In the year 2023, their Design tools powered by AI help to speed up the process of the design process by automating tasks like generating layouts, conducting timing analysis, and optimizing. This allows companies that do not manufacture their own integrated circuits to introduce new products more quickly, giving them a competitive advantage in quickly changing industries. This period offers semiconductor companies the chance to redefine their procedures, invest in innovative technologies, and manage the intricate geopolitical environment. Digital technologies such as 5G, AI and the Internet of Things, of which utilization will be more driven by the enterprise side. Some leading industries, such as automobiles, computing and medical care are pushing forward with the wave of AI application, thereby promoting the development of AI semiconductors. Meanwhile, AI also plays an important role in the demand for data centers and edge hardware. In addition to promoting the development of the telecoms industry, the industry-wide use of 5G is also accelerating the development of semiconductors, enriching the design of AI Internet of Things and innovation around automotive technology. On top of that, with the popularity of the Internet of Things, market demand will increase accordingly which will further boost the huge demand for semiconductor products. The semiconductor industry plays a crucial and thrilling role in shaping AI's future, offering significant potential gains in efficiency and revenue.
Fabless IC Market Segment Insights:
Fabless IC Type Insights
Based on type, the Fabless IC Market is segmented into Microcontrollers (MCUs), Digital Signal Processors (DSP), Graphic Processing Units (GPUs), Application Specific Integrated Circuits (ASIC), Power Management ICs (PMICs), Display Driver ICs, Memory ICs, and Others. Memory ICs hold the largest market share in 2023. Memory chips can hold memory permanently using short-term random-access memory (RAM), Static Ram (SRAM) or read-only memory (ROM). Read-only memory holds permanently stored data that the processor can read but cannot change. Memory chips are important components of computers and electronic devices.
Fabless IC End Use Industry Insights
Based on end use type, the Fabless IC Market is segmented into Consumer Electronics, Automotive, Industrial, Telecommunication, Healthcare, Aerospace & Defense, and Others. In 2023, telecommunication accounted for the largest market share. Increasing demand for high-speed data connections, the rising demand of connected devices due to the Internet of Things (IoT), and the increasing adoption of cloud computing are all driving the telecom market for ICs that provide signal processing, modulation and demodulation at base stations is increasing. They optimize radio frequency (RF) performance and enhance network coverage. ICs are essential for routers, switches, and optical communication equipment. They manage data packets, ensure efficient routing, and maintain network stability in telecommunication.
FIGURE 2: Fabless IC Market, BY END USE INDUSTRY, 2023 VS 2032 (USD MILLION)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Fabless IC Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East and Africa and South America. North America has secured the second-largest market share, primarily due to the pioneering advancements in semiconductor and IC technology and its components, notably led by the United States, a frontrunner in the IC industry. This dominance is largely attributed to the significant consumer demand for products like tablets, smartphones, and various other consumer electronics within the region. Moreover, the burgeoning market for smart wearables, medical devices, sensors, and IoT-enabled products in both the United States and Mexico further amplifies the need for ICs, thereby augmenting the region's demand for such components. Another industry that supports the expansion of the market in this area is industrial automation.
Europe region consists of UK, Germany, France, Rest of Europe for the study. The surge in industrial automation and the implementation of Industry 4.0, alongside the deployment of automated material handling systems like industrial robots, COBOTs, rollers, and automated guided vehicles, are driving the demand for IC. Prospects for the IC industry is anticipated to thrive with the increasing demand for hybrid and electric vehicles. Notably, Germany stands out as the largest European market for plug-in electric vehicle sales. Moreover, advancements in advanced driver assistance systems (ADAS) are propelling the development of autonomous vehicles, further fuelling market growth.
The Asia-Pacific (APAC) region has emerged as a powerhouse in the fabless integrated circuit (IC) industry, bringing technological advancements and reshaping the semiconductor landscape in this dynamic and diversified market is dominated by fabless companies’ key role, delivering innovation, expertise, and strategic partnerships to enable it. The Asia Pacific market is poised to record the highest compound annual growth rate (CAGR) throughout the forecast period. This growth is largely driven by the availability of abundant raw materials and cheap labour in the industry. The increasing demand is driven by rising standards of living in countries such as China, India, Japan, and South Korea, with a focus on various material goods such as self-driving cars, advanced electronics, appliances processing and on advanced medical devices.
FIGURE 3: Fabless IC Market SIZE BY REGION 2023 VS 2032
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Further, the major countries studied in the market report are the U.S., Canada, Mexico, Germany, UK, France, Italy, Spain, China, Japan, and India.
Fabless IC Key Market Players & Competitive Insights
The Fabless IC Market is characterized by the presence of many global, regional, and local vendors. The regional market is highly competitive, with all the players continually competing to gain a larger market share. The vendors compete based on reliability, cost, product quality, and aftermarket services. Therefore, vendors must provide cost-effective and efficient products to survive and succeed in a competitive market environment.
The growth of the vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their services. According to MRFR analysis, the growth of the Fabless IC Market is dependent on market conditions.
The growth of the vendors is dependent on market conditions, government support, and industrial development. Thus, the vendors should focus on expanding their presence and improving their services. According to MRFR analysis, the growth of the Fabless IC market is dependent on market conditions. The key vendors in the market are Qualcomm Inc., Broadcom Inc., Silicon Labs, MediaTek Inc., NVIDIA Corporation, Xilinx Inc., Himax Technologies Inc., Ambarella Inc., Infineon Technologies AG and Renesas Electronics Corporation. These players focus on expanding and enhancing their product portfolio and services to remain competitive and increase their customer base. Additionally, these players are focusing on partnerships & collaborations to expand their business and customer base to enhance their market position.
Key Companies in the Fabless IC Market include.
Fabless IC Industry Developments
In April 2024, Qualcomm has launched the “micro-power” QCC730 Arm Cortex-M4F dual-band WiFi 4 microcontroller for the IoT market that targets similar applications as the Espressif ESP32 microcontrollers but potentially at lower power consumption with claims of up to 88% lower power than “previous generations” making it suitable for battery-powered industrial, commercial and consumer applications.
In November 2023, Silicon Laboratories Inc. has launch the BB5x family, a new family of 8-bit microcontrollers (MCUs) built to help designers use familiar tools when developing simple embedded applications like electric toothbrushes, handheld kitchen tools, and even children's toys.
Fabless IC Market Segmentation:
Fabless IC Type Outlook
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Microcontrollers (MCUs)
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Digital Signal Processors (DSP)
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Graphic Processing Units (GPUs)
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Application Specific Integrated Circuits (ASIC)
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Power Management ICs (PMICs)
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Display Driver ICs
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Memory ICs
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Others
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Acoustic HMI
Fabless IC End Use Industry Outlook
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Consumer Electronics
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Automotive
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Industrial
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Telecommunication
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Healthcare
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Aerospace & Defense
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Others
Fabless IC Regional Outlook
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North America
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Europe
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UK
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Germany
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France
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Italy
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Spain
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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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South Korea
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Australia
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Rest of Asia-Pacific
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Middle East & Africa
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South America
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Report Attribute/Metric
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Details
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Market Size 2023
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USD 1,05,018.6 million
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Market Size 2024
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USD 1,17,620.8 million
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Market Size 2032
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USD 4,39,469.8 million
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Compound Annual Growth Rate (CAGR)
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17.9 % (2024-2032)
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Base Year
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2023
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Market Forecast Period
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2024-2032
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Historical Data
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2019- 2022
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Market Forecast Units
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Value (USD Million)
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Report Coverage
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Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
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Segments Covered
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Type, End Use Industry and Region
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Geographies Covered
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Europe, North America, Asia-Pacific, Middle East & Africa, and South America
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Countries Covered
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US, Canada, Mexico, Germany, U.K., Italy, France, Japan, China, India, South Korea, Saudi Arabia, UAE, South Africa Brazil, Argentina, and Others.
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Key Companies Profiled
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Qualcomm Inc.
Broadcom Inc.
Silicon Labs
MediaTek Inc.
NVIDIA Corporation
Xilinx Inc.
Himax Technologies Inc.
Ambarella Inc.
Infineon Technologies AG
Renesas Electronics Corporation.
Others
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Key Market Opportunities
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Integration of ai and machine learning technologies in semiconductor design
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Key Market Dynamics
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Increasing demand for innovative electronic devices
Technological advancements in IC manufacturing
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Frequently Asked Questions (FAQ) :
The Fabless IC Market size is expected to be valued at USD 1,05,018.6 Million in 2023.
The global market is projected to grow at a CAGR of 17.9 % during the forecast period, 2024-2032.
North America had the largest share of the global market.
The key players in the market are Qualcomm Inc., Broadcom Inc., Silicon Labs, MediaTek Inc., NVIDIA Corporation, Xilinx Inc., Himax Technologies Inc., Ambarella Inc., Infineon Technologies AG and Renesas Electronics Corporation and Others.
The Memory ICs category dominated the market in 2023.
