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The special purpose Logic IC market size is projected to increase by USD 38.7 at a CAGR of 6.77% between 2024 and 2028. The market is experiencing significant growth, driven by several key factors. The increasing adoption of smartphones and tablets, which rely on these ICs for advanced functionality, is a major contributor. Additionally, the automotive industry's shift towards automation is fueling demand for these components in vehicle systems. Furthermore, the expanding need for memory devices, particularly in data centers and other large-scale IT infrastructure, is creating new opportunities for Special Purpose Logic ICs. These trends are expected to continue, ensuring robust growth for the market in the coming years.
The market growth and forecasting report includes key player's detailed analyses of the competitive landscape of the market and information about key companies, including Advanced Micro Devices Inc., Analog Devices Inc., Broadcom Inc., GOWIN Semiconductor Corp., Infineon Technologies AG, Intel Corp., Kingston Technology Co. Inc., Microchip Technology Inc., NXP Semiconductors NV, Phoenix Contact GmbH and Co. KG, Qualcomm Inc., Renesas Electronics Corp., STMicroelectronics International N.V., Texas Instruments Inc., and Trenz Electronic GmbH
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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.
Market analysis and report of 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 share growth by the communications segment will be significant during the forecast period. The communication segment includes telecommunications equipment, data communications equipment, Ethernet switch ICs, and baseband. Positive trends in mobile broadband and big data management are expected to drive the market. Network operators are looking to offer faster data connections, faster high-definition video streaming, and a wide range of multimedia applications. 4G networks have replaced 3G in some developed countries and are growing rapidly in developing countries such as India. Moreover, with the rollout of his 5G network in 2020, the market is expected to drive the growth of telecom equipment. This will enhance the demand for special-purpose logic ICs, as telecommunication equipment.
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The communications segment was valued at USD 45.70 billion in 2018. With the growth in telecommunication equipment, the demand for special-purpose logic ICs will also rise. Further, high growth in global data traffic, fueled by the emergence of wireless devices, cloud computing, and virtualization, will increase the demand for special-purpose logic ICs. The rising demand for network infrastructure equipment such as Ethernet switches, routers, wireless local area networks (WLAN), IP telephony, fiber channel switches, and enterprise video conferencing and telepresence equipment is expected to drive the growth of the communication segment during the forecast period.
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APAC is estimated to contribute 75% to the growth of the global market during the forecast period. Technavio's analysts have provided an extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period.
APAC is home to a large number of electronic device manufacturers, and holds the largest share of the Special Purpose Logic Integrated Circuit (IC) Market. The market is expected to grow at a considerable pace, mainly due to the growth and expansion of telecommunication networks in China, Thailand, Malaysia, South Korea, India, and other developing countries in the region. Additionally, the region is home to major players in the consumer electronics and mobile device industry such as Sony, Samsung, LG, Toshiba, and Panasonic. The consumer electronics (including mobile phones) market is likely to experience significant growth as disposable income in developing countries in the region grows rapidly during the forecast period. This will drive demand for semiconductor ICs in APAC.
The market is crucial in powering high-performance electronic devices across various sectors, including telecommunications and consumer electronics like low-cost smartphones, tablets, and TVs. These ICs, ranging from Programmable Logic ICs to Gate-array Based ICs, offer specific functionalities tailored to IoT capabilities and digital signal processing needs. Semiconductor fabs play a pivotal role in manufacturing these ICs, often requiring specialized environments like those using liquid nitrogen and Front Opening Unified Pods for production. Full-custom Design ICs and Standard-cell Based ICs are essential for developing custom solutions in electronics, ensuring efficient operation in general-purpose and specialized applications. As internet penetration grows, the demand for advanced Logic ICs continues to expand, driving innovation and performance enhancements in the semiconductor industry. Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The high adoption of smartphones and tablets is notably driving the market growth. Global smartphone shipments reached 353.6 million units in Q3 2020. Smartphone shipments are expected to exceed 1.67 billion units by 2023 due to the availability of low-cost smartphones and increasing global internet penetration. companies in the smartphone market are investing in developing smartphones with advanced features. For example, Hytera Communications Corp. Inc. September 2020 launched PNC550, a rugged Android smartphone with PTT functionality. This device provides fast and efficient voice communication via a PTT button. It's inexpensive and supports broadband networks (3G/4G) and Wi-Fi for fast speeds and long-range. Such technological advances in smartphones will increase consumer adoption of smartphones worldwide. This will boost the demand for specialized logic ICs in smartphones and tablets, propelling the market growth during the forecast period.
Advanced wireless technology has made it imperative to use advanced transceiver ICs in smartphones and tablets. Transceiver ICs define mobile device performance in terms of signal strength. This is because the transceiver IC detects weak signals at the tuned frequency and transmits the signal at that tuned frequency. For example, an LTE-enabled mobile phone in LTE mode should work in its corresponding LTE frequency band, but in 3G mode and 2G mode, it should also work in a different frequency band. This is very demanding as the transceiver must work reliably on all single bands from 4G to 2G. Complex Programmable Logic Devices (CPLDs) are used for several applications in smartphones, such as performance optimization, and are therefore critical in fulfilling critical functions of smartphones, such as cellular transmission of content, including voice and text. Signaling requires the ability of the CPLD to transfer data efficiently. Therefore, demand for communication devices around the world creates demand for CPLDs in the market. This will propel the growth of the market during the forecast period.
Change in wafer size is a key trend influencing the market growth. The global semiconductor industry has seen a change in wafer size over the last 40 years. Silicon wafer size has increased from 100mm to 300mm to reduce manufacturing costs by at least 20% to 25%. The semiconductor industry currently uses 300 mm wafers to manufacture ICs. The use of 300mm wafers is expected to continue during the forecast period as semiconductor manufacturers invest heavily in upgrading and building new fabs for this wafer size. Demand for 200mm wafers is expected to continue as devices such as sensors, microcontrollers, display drivers, and some MEMS-based products such as accelerometers still use 200mm wafers for manufacturing. The industry is currently planning to develop 450mm wafer technology. Intel has invested in 450mm wafer research and development and is building a production facility for it. Therefore, the transition to new wafer sizes and the development of new manufacturing units create a huge demand for wafer inspection equipment.
Market companies have continuously supported technology transitions and increased production yields while achieving high production volumes. Several developments have taken place in semiconductor manufacturing, including shrinking node sizes and increasing wafer sizes. Similarly, node size reduction to 7nm or 5nm ICs and 3D stacking of ICs are some of the key trends in the market. As smartphones integrate multiple functions, the demand for ICs is increasing. Therefore, the IC maker is moving to larger-diameter wafers to ramp up the production of PMICs. This allows manufacturers to integrate more chips per wafer, reducing production costs. Therefore, increasing smartphone users and the introduction of advanced technology into smartphones are expected to force IC manufacturers to switch to 450mm wafers to reduce manufacturing costs and improve production yields during the forecast period.
The miniaturization of electronic devices is challenging the market growth. As semiconductor electronic devices continue to shrink in size, IC manufacturers are forced to reduce board area while maintaining manufacturing costs. Shrinking board space means that it has to integrate over 30 different high and low-voltage circuits and analog functions into one chip. This increases design complexity and manufacturing costs, highlighting the importance of integrated circuit design. Rapid technological advances and the trend toward miniaturization have continuously reduced circuit and chip sizes, increasing the need for uncompromised performance. Such scenarios make the design of new-age ICs difficult, especially when manufacturing costs must be kept low. This poses a challenge for manufacturers who need to design high-performance IC chips that are miniaturized while keeping cost factors in mind, emphasizing the significance of market growth analysis in the electronics market.
Demand for small ICs is skyrocketing due to technological improvements and the emergence of small devices such as smartphones, tablets, and smartwatches. In such a scenario where everything is miniaturized, companies must constantly upgrade their products with more advanced and compact ICs to meet consumer demands, highlighting the relevance of Application-Specific Integrated Circuits (ASICs), Field-Programmable Gate Arrays (FPGAs), Digital Signal Processors (DSPs), and System-on-Chip (SoC) in the electronics market. This forces suppliers to invest heavily in purchasing expensive equipment to produce intelligent and compact IC systems, including custom integrated circuits. As a result, companies must increase their budgets to create these intelligent systems. Rapid advances in technology require market providers to invest more in manufacturing small ICs, which can reduce profitability. This could pose a major challenge to the growth of the Special Purpose Logic Integrated Circuit Market during the forecast period, emphasizing the importance of adapting to the changing landscape of the electronics market.
The market forecasting report includes the adoption lifecycle of the market research and growth, 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 market growth and trends strategies.
Global Market Customer Landscape
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
Mixed-signal Integrated Circuits (IC) Market - Mixed-signal Integrated Circuits (IC) Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, South Korea, India, Germany - Size and Forecast
Artificial Intelligence (AI) Chips Market - Artificial Intelligence (AI) Chips Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, UK, Germany, Taiwan - Size and Forecast
General Purpose Test Equipment (GPTE) Market - General Purpose Test Equipment (GPTE) Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, Canada, China, Japan, Germany - Size and Forecast
The AR, VR, and XR market is rapidly expanding, driven by advancements in OLED technology and semiconductor technology. These technologies enable gesture-based computing and immersive experiences tailored for Millennials and various sectors like telecommunications, automotive, and industrial automation. Application-Specific Standard Products and System on Chips facilitate energy-efficient devices and artificial intelligence integration in smartwatches, computers, and smartphones. Advanced manufacturing techniques and integration capabilities in Full-custom Design ICs and Gate-array Based ICs support edge computing in healthcare, aerospace, and defense industries. The telecommunications sector benefits from General-purpose ICs, enhancing connectivity and performance in 5G networks. As demand grows for AR and VR applications, industries prioritize energy efficiency and advanced technologies to meet consumer expectations for interactive and immersive experiences across diverse digital platforms.
Industry Scope |
|
Report Coverage |
Details |
Page number |
183 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.77% |
Market growth 2024-2028 |
USD 38.7 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.21 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 75% |
Key countries |
China, US, South Korea, Taiwan, and Singapore |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Advanced Micro Devices Inc., Analog Devices Inc., Broadcom Inc., GOWIN Semiconductor Corp., Infineon Technologies AG, Intel Corp., Kingston Technology Co. Inc., Microchip Technology Inc., NXP Semiconductors NV, Phoenix Contact GmbH and Co. KG, Qualcomm Inc., Renesas Electronics Corp., STMicroelectronics International N.V., Texas Instruments Inc., and Trenz Electronic GmbH |
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 forecast period |
Customization purview |
If our market 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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