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The Analog Integrated Circuit (IC) Market size is forecast to increase by USD 30.50 billion, at a CAGR of 7.69% between 2023 and 2028.
The growth of the market depends on several factors, including the increasing demand for consumer electronics, the growing industrial automation, and the growing emphasis on renewable energy. Analog ICs are semiconductor devices that integrate multiple analog functions onto a single chip. These circuits process continuous signals, in contrast to digital circuits that manipulate discrete signals. Analog ICs are designed to perform various functions related to continuous signals, including amplification, filtering, signal conditioning, and more. They are widely used in electronic systems where precise and continuous signal processing is necessary. The integration of multiple analog components onto a single chip offers advantages such as reduced component count, smaller footprint, and improved performance.
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One of the key factors driving the market growth is the increasing demand for consumer electronics. Most of the consumer electronic devices often need sophisticated audio and video processing capabilities. In addition, these are crucial for tasks like audio amplification, video signal processing, and image sensor interfacing in devices such as smartphones, TVs, cameras, and audio systems.
Moreover, with the increasing popularity of portable devices like smartphones and wearables, power efficiency is a critical factor. In addition, they play a vital role in power management, helping to optimize battery life and enhance overall energy efficiency in these devices. Furthermore, consumer electronics devices need to connect to various networks and peripherals. Therefore, they are used in communication interfaces such as Bluetooth, Wi-Fi, and NFC, enabling seamless connectivity between devices. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market during the forecast period.
A key factor shaping the market growth is the increasing demand for IoT devices. Several IoT devices are embedded with different sensors that collect real-time data from the surrounding environment. In addition, they are used to interface with these sensors, converting these signals (such as temperature, pressure, and light levels) into digital data for processing.
Moreover, they are essential for conditioning signals from sensors and other sources. In addition, this includes amplifying, filtering, and processing analog signals to ensure they are accurate and reliable for further processing. Furthermore, they are used in radio frequency (RF) components, transceivers, and power amplifiers to facilitate wireless connectivity. Hence, such factors are positively impacting the market. Therefore, it is expected to drive the market during the forecast period.
The complex design process of analog ICs is one of the key challenges hindering market growth. They are essentially customized for particular applications, requiring intricate design processes tailored to meet unique requirements. In addition, this specialization adds complexity to the design phase. These circuits often demand high precision and tight tolerances.
Moreover, achieving and maintaining these specifications throughout the design process is challenging and needs sophisticated design techniques. In addition, many applications need the integration of both analog and digital components on the same chip. Therefore, designing circuits that effectively manage the interaction between analog and digital signals is a complex task. Hence, such factors are negatively impacting the market. Therefore, it is expected to hinder the market growth during the forecast period.
The general purpose ICs segment is estimated to witness significant growth during the forecast period. There is an extensive use of general-purpose IC in amplifiers and comparators, interfaces, voltage regulators, and data converters. In addition, operational Amplifiers (Op-Amps) are widely used for signal amplification in various applications. Furthermore, they can provide high gain, making them suitable for amplifying small signals to a level that is useful for further processing.
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The general purpose ICs segment was the largest segment and valued at USD 37.35 billion in 2018. Moreover, op-amps can be configured as inverting or non-inverting amplifiers to suit different signal processing requirements. In addition, op-amps, are used in audio amplifiers to amplify low-level audio signals with minimal noise. Furthermore, in audio systems, power amplifiers use these to amplify signals to levels suitable for driving speakers. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
The extensive use of analog ICs in the consumer electronics segment will increase the market growth. There is an increasing adoption in audio amplifiers to enhance and amplify audio signals, ensuring clear and high-quality sound in devices like smartphones, audio systems, and headphones. In addition, ADCs and digital-to-analog converters (DACs) are vital in audio codecs, enabling the conversion between analog and digital audio signals. Moreover, these ICs, such as voltage regulators, are used to maintain a stable voltage supply for various components within consumer electronics, ensuring proper operation and preventing damage due to voltage fluctuations. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
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APAC is estimated to contribute 50% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. There is a significant growth of the global market in the APAC as the region is a main consumer of electronic devices and components. In addition, the growing demand for smartphones, consumer electronics, automotive electronics, and industrial equipment fuels the need that play a crucial role in these applications. Moreover, ongoing industrialization and urbanization in countries like China and India are fuelling the adoption of various electronic systems and automation technologies. In addition, analog ICs are vital components in industrial automation, control systems, and infrastructure development. Therefore, the automotive industry in APAC is experiencing a surge in the integration of electronic systems for safety, infotainment, and connectivity. Hence, such factors are driving the market growth in APAC during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Analog Devices Inc: The company offers MAX22841, MAX22881, LT8638 2, and ADUM1253.
Infineon Technologies AG: The company offers ASIC Application Specific Integrated Circuits, which are custom ICs that are designed, planned, developed, and used for a specific purpose, with the mission of being optimized, efficient, and having all the required functionalities and features to be used in a specific application for a single customer.
MediaTek Inc: The company offers analog devices, cellular radio, and baseband chipset divisions
The research report also includes detailed analyses of the competitive landscape of the market and information about 13 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
The Market is thriving, driven by demand for DC amplifiers, Multi-vibrators, and Oscillators across various sectors like LED lighting applications, Data communication systems, and Display drivers. Emerging trends in Internet of Things (IoT) and Healthcare monitoring are fueling growth, particularly in Healthcare Devices Applications and Automotive applications.
Global Mixed-Mode Technology is a key enabler, supporting RFICs (radio frequency integrated circuits) and enhancing Information Technology and Telecommunications systems. Companies like Maxim Integrated Products lead the market, offering innovative solutions for diverse applications. Despite the promising outlook, the market faces challenges such as Competitive Rivalry and Threat of Substitution. Value Chain Analysis and Pricing Analysis are crucial for market players to maintain competitiveness. Supplier Bargaining Power and Buyer Bargaining Power influence market dynamics. The market's future lies in continuous innovation to meet the evolving demands of the Healthcare, Automotive, and IoT industries.
Analog Integrated Circuit Market Scope |
|
Report Coverage |
Details |
Page number |
159 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.69% |
Market Growth 2024-2028 |
USD 30.50 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.67 |
Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
Performing market contribution |
APAC at 50% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Analog Devices Inc., Infineon Technologies AG, MediaTek Inc., Microchip Technology Inc., NXP Semiconductors NV, ON Semiconductor Corp., Ozark Integrated Circuits, Inc., Qualcomm Inc., Renesas Electronics Corp., Skyworks Solutions Inc., STMicroelectronics International N.V., Taiwan SEMICONDUCTOR CO. LTD, and Texas Instruments Inc. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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