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The Rugged Integrated Circuit (IC) Market size is estimated to grow at a CAGR of 6.91% from 2023 and 2028. The market size is forecast to increase by USD 905.29 million. The growth of the market depends on several factors, including the adoption of ruggedized computers in defense applications, the expansion of industrial automation, and the rising use of rugged ICs in defense and aerospace applications. Rugged integrated circuits (ICs) are specialized semiconductor devices designed to operate reliably in challenging and harsh environments. These environments can include extreme temperatures, high levels of radiation, exposure to dust and moisture, vibrations, and physical shocks.
This rugged IC market report extensively covers market segmentation by product (rugged mobile computers, rugged tablets, rugged scanners, and rugged air quality monitors), end-user (consumer electronics, automotive, industrial, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2018-2022.
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One of the key factors driving the rugged IC market growth is the expansion of industrial automation. Industrial automation depends on sensors and control systems to monitor and manage different processes. In addition, these sensors often need rugged ICs to function in harsh environments, including manufacturing plants, where they may be exposed to extreme temperatures, vibration, and contaminants.
Moreover, rugged ICs are essential for the control and precision required in these systems, especially in environments with high mechanical stress. In addition, machine vision systems are used for quality control, inspection, and automation in manufacturing. Furthermore, rugged ICs are crucial for image processing and analysis in these applications. Hence, such factors are positively impacting the rugged integrated circuit market. Therefore, it is expected to drive the market growth during the forecast period.
A key factor shaping the rugged IC market growth is the growing need for environmental sensing and monitoring. Several environmental sensors that are utilized in monitoring systems often need rugged ICs to function reliably in challenging outdoor conditions. In addition, these ICs can withstand temperature fluctuations, humidity, and exposure to the elements.
Moreover, the development of smart cities includes the deployment of sensors and monitoring systems for traffic management, waste management, air quality, and more. In addition, rugged ICs are used to ensure the longevity and reliability of these sensors. Furthermore, rugged ICs are used in data loggers, weather stations, and remote monitoring systems. Hence, such factors are positively impacting the rugged integrated circuit market. Therefore, it is expected to drive the market growth during the forecast period.
The cyclical nature of the semiconductor industry is one of the key challenges hindering the rugged IC market growth. The global rugged IC market highly relies on the sales of electronic devices. Therefore, the fluctuating demand for electronic devices, including consumer electronic devices, and mobile devices, makes forecasting in the semiconductor market difficult.
As a result, it leads to the oversupply or undersupply of electronic components. In addition, the oversupply of components results in reduced demand for them. Furthermore, the slow pace at which industrial automation is moving may further result in an oversupply due to the high estimated growth of industrial automation, based on which semiconductor manufacturers plan their unit production. Hence, such factors are negatively impacting the rugged IC market. Therefore, it is expected to hinder the market growth during the forecast period.
The rugged mobile computers segment is estimated to witness significant growth during the forecast period. Factors such as the increased technological advances in the consumer-grade device sector signficantly contribute to the growth of this segment. In addition, the non-rugged mobile computer market is well-established, and intense competition in this market has led to several developments, including the bundling of technologies.
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The rugged mobile computers segment was the largest segment and was valued at USD 975.72 million in 2018. Moreover, this segment is mainly dominated by semi-rugged devices, followed by fully rugged devices. In addition, the ultra-rugged handhelds are used by the military and the government segments only for application in extreme environments. Furthermore, the commercial and industrial segments have contributed to the high sales volumes of rugged mobile computers. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
The increasing incorporation of rugged ICs in the consumer electronics segment will fuel the market growth. Consumer smartphones designed for outdoor enthusiasts, including hikers and adventurers, may utilize rugged ICs to improve their durability. In addition, these ICs can help the device withstand exposure to water, dust, and shocks, ensuring the smartphone remains functional in challenging outdoor conditions. Moreover, fitness trackers and wearable devices may incorporate rugged ICs to ensure that they can withstand sweat, moisture, and minor impacts during workouts and outdoor activities. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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North America is estimated to contribute 36% 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. As North America has a strong defense and aerospace sector, with the United States being a significant player in these industries, it is significantly contributing to the growth of the rugged IC market in the region. In addition, rugged ICs are essential for military and aerospace applications, including avionics, missile systems, and satellite technology.
Moreover, the manufacturing and industrial sectors in North America continue to adopt automation and Industry 4.0 technologies. In addition, these applications require rugged ICs for control systems, machinery, and equipment used in challenging environments. Furthermore, the automotive industry in North America, including the United States, Canada, and Mexico, is a major market for rugged ICs as they are used in off-road vehicles, construction equipment, and other heavy-duty applications. Hence, such factors drive the market growth in North America during the forecast period.
In 2020, during the COVID-19 pandemic, the growth of the global rugged IC market witnessed a significant slowdown due to the halt in operations of manufacturing of rugged ICs in North America. However, in 2021, the initiation of large-scale vaccination drives lifted the lockdown and travel restrictions, which led to the restoration of operations in manufacturing units. Such factors are expected to drive the market during the forecast period.
The rugged IC 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 Rugged IC 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 rugged IC such as LTC2874 and LT3669 which provide as a communication interface between automation control systems and intelligent sensors and actuator
Dexter Apache Holdings Inc: The company offers rugged IC such as RE1539, RE1813, and RE3101.
General Dynamics Corp: The company offers type 1, type 2, and type 3 rugged IC that are created by using silicon carbide as this semiconducting material which can withstand high voltage and possess high thermal conductivity.
The research report also includes detailed analyses of the competitive landscape of the market and information about 12 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 rugged IC 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.
Rugged IC Market Scope |
|
Report Coverage |
Details |
Page number |
173 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.91% |
Market Growth 2024-2028 |
USD 905.29 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.67 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 36% |
Key countries |
US, China, Germany, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Analog Devices Inc., Dexter Apache Holdings Inc., General Dynamics Corp., Honeywell International Inc., Infineon Technologies AG, MediaTek Inc., NXP Semiconductors NV, Qualcomm Inc., STMicroelectronics International N.V., Taiwan SEMICONDUCTOR CO. LTD, Texas Instruments Inc., and Ozark Integrated Circuits, Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, 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. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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