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The special purpose logic IC market size is estimated to grow at a CAGR of 6.56% between 2022 and 2027. The market size is forecast to increase by USD 35.14 billion. The growth of the market depends on several factors, including the high adoption of smartphones and tablets, automation in automobiles, and the growing need for memory devices.
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Key Driver
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 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 Special Purpose Logic 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.
Advanced Micro Devices Inc: The company offers different types of special-purpose logic IC solutions such as AMD CDNA, Milan X, etc.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, 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.
Market Analyst Overview
In the realm of Special Purpose Logic IC Market, various Electronic Components play pivotal roles, including Analog ICs, Mixed-Signal ICs, and Power Management ICs. These components are integral to diverse applications such as Embedded Systems, Automotive Electronics, and Industrial Automation. With the advent of the Internet of Things and Wireless Communication, the demand for specialized logic ICs has surged. Semiconductor Technologies have advanced significantly, leading to the development of Digital Logic Circuits and Analog Logic Circuits. ASIC Design and FPGA Development have become essential aspects of chip fabrication, while IC Testing ensures quality and reliability. Market research and growth analysis indicate a promising trajectory for the Special Purpose Logic IC Market, with Market forecasting highlighting sustained expansion. As Electronic Device Integration evolves and Circuit Optimization techniques improve, the market is poised for substantial market growth and forecasting driven by High-Performance Computing requirements.
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 43.36 billion in 2017 and continued to grow until 2021. 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 72% to the growth of the global Special Purpose Logic Integrated Circuit (IC) Market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC is home to a large number of electronic device manufacturers, and as such, 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 special purpose logic 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 2017 to 2027.
Technavio classifies the global special purpose logic IC market as part of the global semiconductor equipment market within the global semiconductors and semiconductor equipment market. The global semiconductor equipment market consists of semiconductor equipment manufacturers, including manufacturers of raw materials and equipment used in the solar energy market. Technavio defines semiconductor equipment manufacturers as companies involved in the manufacture of both front-end (wafer fab/fabrication and wafer processing) and back-end (test, assembly, and packaging) semiconductor equipment.
Special Purpose Logic IC Market Scope |
|
Report Coverage |
Details |
Page number |
175 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.56% |
Market growth 2023-2027 |
USD 35.14 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
6.09 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 72% |
Key countries |
US, China, 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 NV, 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 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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