Enjoy complimentary customisation on priority with our Enterprise License!
The special purpose logic ic market size is forecast to increase by USD 38.7 billion at a CAGR of 6.77% between 2023 and 2028. The market is experiencing significant growth due to several key trends. The high adoption of smartphones and tablets, driven by consumer demand for advanced features and connectivity, is leading to increased usage of Special Purpose Logic ICs. Additionally, the change in wafer size and miniaturization of electronic devices are enabling the production of smaller, more efficient ICs. These trends are contributing to the market's growth and are expected to continue driving demand in the coming years. Furthermore, the increasing usage of Special Purpose Logic ICs in automotive, industrial, and consumer electronics applications is also fueling market expansion. Despite these opportunities, challenges such as design complexities and manufacturing costs remain, requiring continuous innovation and optimization to meet the evolving demands of the market.
The market is witnessing significant growth due to the increasing demand for high-performance electronic devices in consumer electronics. With the proliferation of smartphones and tablets, the market for logic ICs, including programmable logic ICs, digital signal processors, and microcontrollers, is experiencing strong growth. The market is further driven by the increasing internet penetration and the emergence of 5G technology. Semiconductor fabs are investing heavily in the production of logic ICs to cater to the demands of the communications, computing, consumer electronics, and telecommunications industries. The production process involves the use of advanced technologies such as full-custom design IC, standard-cell based IC, and gate-array based IC.
Moreover, the market is witnessing the adoption of logic ICs in high-performance electronic devices such as TVs, computers, smartphones, and IoT capabilities. The use of liquid nitrogen in the manufacturing process of logic ICs is also gaining popularity due to its ability to improve the efficiency and performance of the ICs. Overall, the market for logic ICs is expected to grow steadily in the coming years, driven by the increasing demand for high-performance electronic devices across various industries.
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.
The communications segment is estimated to witness significant growth during the forecast period. The market is experiencing significant growth in the Consumer Electronics sector, driven by the increasing demand for high-performance electronic devices such as Smartphones and Tablets. With the rise of Internet penetration and the increasing popularity of Low-cost smartphones, the market for Logic ICs is expected to expand. The introduction of 5G networks in 2020 is further fueling this growth, as the telecommunications industry seeks to provide faster data connectivity and support multimedia applications. This trend is particularly noticeable in the Telecommunications sector, where enterprise network equipment, wireline network equipment, subscriber equipment, and cable/multiservice operator equipment require numerous Microcontrollers and Digital Signal Processors for their functioning.
Moreover, the emergence of AR, VR, and XR market is expected to boost the demand for Special Purpose Logic ICs in Consumer Electronics. Millennials, who are the primary users of these technologies, are driving the adoption of OLED technology and Gesture-based computing. The Semiconductor industry is responding by producing Application-Specific Standard Products (ASSPs), System on Chips (SoCs), and Application-Specific Integrated Circuits (ASICs) to meet the demands of this market. Programmable Logic ICs are also gaining popularity due to their energy efficiency and flexibility. The Communications segment, which includes telecom equipment, datacom equipment, ethernet switch ICs, basebands, and others, is expected to grow significantly.
Get a glance at the market share of various segments Request Free Sample
The communications segment was valued at USD 45.70 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 75% 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.
For more insights on the market share of various regions Request Free Sample
Electronics manufacturers continue to innovate in the market by integrating advanced technologies, such as energy efficiency, miniaturization, and integration capabilities, to meet the evolving demands of various industries. These ICs are increasingly being adopted in sectors like healthcare, industrial automation, telecommunications, aerospace and defense, and industrial, where real-time processing and edge computing are essential. Advanced manufacturing techniques enable the production of high-performance ICs with enhanced functionality and reliability. The integration of these ICs in applications ranging from medical devices to industrial machinery and telecommunications networks is driving market growth. Additionally, the miniaturization of these ICs enables the development of compact and portable devices, further expanding their applicability.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The high adoption of smartphones and tablets is the key driver of the market. The global market for Logic ICs is experiencing significant growth due to the increasing demand for high-performance electronic devices in various sectors, including Consumer Electronics, Telecommunications industry, Automotive, and Industrial automation. This growth can be attributed to the availability of low-cost smartphones and increasing Internet penetration worldwide. companies in the Consumer Electronics market are continually innovating to meet the demands of tech-savvy consumers, particularly millennials, who prefer smartphones, tablets, and other high-tech devices.
Furthermore, the emergence of technologies such as AR, VR, XR market, and gesture-based computing is driving the demand for Application-Specific Standard Products (ASSPs), System on Chips (SoCs), Application-Specific Integrated Circuits (ASICs), Programmable Logic ICs, and other Logic ICs. Moreover, the Telecommunications sector's shift towards 5G technology is expected to fuel the growth of the Logic IC market. The semiconductor industry is investing heavily in semiconductor fabs to meet the increasing demand for energy-efficient devices, such as OLED technology-based TVs, computers, smartphones, smartwatches, microcontrollers, digital signal processors, and telecommunications equipment. In the Automotive sector, the focus is on developing energy-efficient and safe electronic systems, such as Full-custom Design ICs and Standard-cell Based ICs, to meet the growing demand for electric vehicles.
Moreover, the Industrial automation sector is also witnessing a rise in demand for Logic ICs to develop smart factories and automated systems. In conclusion, the Logic IC market is poised for significant growth due to the increasing demand for high-performance electronic devices in various sectors, including Consumer Electronics, Telecommunications industry, Automotive, and Industrial automation. The market is expected to witness strong growth in the coming years, driven by the development of advanced technologies such as 5G, AR, VR, XR market, and IoT capabilities, and the increasing adoption of artificial intelligence and energy-efficient devices.
Change in wafer size is the upcoming trend in the market. The semiconductor industry has seen significant advancements in wafer sizes over the past four decades, with the shift from 100 mm to 300 mm wafers reducing manufacturing costs by approximately 20-25%. Currently, semiconductor manufacturers predominantly use 300-mm wafers for producing Logic ICs, Application-Specific Standard Products (ASSPs), System on Chips (SoCs), Application-Specific Integrated Circuits (ASICs), Programmable Logic ICs, and other high-performance electronic devices. This trend is projected to persist through the forecast period due to substantial investments in upgrading and constructing new semiconductor fabs for 300-mm wafers. However, the demand for 200-mm wafers remains steady, as they are still utilized in manufacturing sensors, microcontrollers, digital signal processors, display drivers, and certain MEMS-based products like accelerometers.
Furthermore, in the consumer electronics sector, 300-mm wafers are essential for producing advanced technologies such as 5G, Augmented Reality (AR), Virtual Reality (VR), and Extended Reality (XR) market components for smartphones, tablets, smartwatches, and other devices. Additionally, the automotive, industrial automation, and telecommunications sectors rely on energy-efficient semiconductor technology for IoT capabilities, artificial intelligence, and various communications applications.
Miniaturization of electronic devices is a key challenge affecting the market growth. The market for Special Purpose Logic ICs is experiencing significant growth due to the increasing demand for high-performance electronic devices in various sectors. With the proliferation of smartphones and tablets, as well as the expanding internet penetration, the need for advanced Logic ICs, such as Application-Specific Standard Products (ASSPs), System on Chips (SoCs), Application-Specific Integrated Circuits (ASICs), and Programmable Logic ICs, is escalating. The emergence of 5G technology and the XR market, including AR, VR, and XR devices, is driving the demand for more sophisticated Logic ICs. Moreover, the trend towards miniaturization and the development of low-cost smartphones and other consumer electronics, such as smartwatches and microcontrollers, necessitate the use of energy-efficient devices and IoT capabilities.
Furthermore, in the telecommunications industry, high-performance electronic devices, including digital signal processors and telecommunications equipment, require advanced Logic ICs for efficient communications. The semiconductor industry is responding to these demands by investing in semiconductor fabs and advanced semiconductor technology, such as OLED technology and Full-custom Design ICs. However, the design complexity of these ICs is increasing, requiring advanced manufacturing processes, such as those using liquid nitrogen, to ensure uncompromised performance. The automotive, industrial automation, and telecommunications sectors are also major consumers of Logic ICs, further increasing the demand for these advanced technologies.
The market forecasting 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 market growth analysis strategies.
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.
Advanced Micro Devices Inc: The company offers different types of special-purpose logic IC solutions such as AMD CDNA, Milan X, etc.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key 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 is experiencing significant growth due to the increasing demand for high-performance electronic devices in various industries. With the proliferation of smartphones and tablets among millennials, the consumer electronics sector is driving the market's growth. The market is also witnessing a rise in the demand for application-specific standard products, system on chips, and application-specific integrated circuits for 5G communications and computing in the telecommunications industry. The XR market, including AR, VR, and XR devices, is another major contributor to the market's growth. The semiconductor industry is investing heavily in semiconductor fabs to meet the demand for energy-efficient devices.
Furthermore, OLED technology is gaining popularity in high-performance electronic devices, leading to an increased demand for programmable logic ICs. The automotive sector and industrial automation sector are also significant contributors to the market's growth, with a focus on gesture-based computing and IoT capabilities. The market is expected to continue growing, with a shift towards full-custom design ICs and standard-cell based ICs for general-purpose applications and gate-array based ICs for specific applications. The market for microcontrollers, digital signal processors, and telecommunications ICs is also expected to grow, driven by the increasing demand for energy-efficient devices and artificial intelligence applications.
Market 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, market forecast, 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 market 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. Get in touch
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
Get the report (PDF) sent to your email within minutes.
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.