Global Application-Specific Integrated Circuit (ASIC) Market - 2023-2030

Market Overview

Global Application-Specific Integrated Circuit (ASIC) Market reached US$ 15.7 billion in 2022 and is expected to reach US$ 34.5 billion by 2030, growing with a CAGR of 8.3% during the forecast period 2023-2030. Manufacturers' mass-production capabilities are critical to the development of the application-specific integrated circuit the sector. Despite its potential uses, costs continue to be an important barrier to small-business growth, since end-user sectors continue to seek high-volume manufacturing. Market participants are reacting to such developments by shortening product development cycles for reduced specialties.

Asia-Pacific has had significant growth and popularity, accounting for more than 1/3rd of the global application-specific integrated circuit (ASIC) market in 2022. The growth of the automotive industry contributes to the need for integrated circuits, encouraging IC manufacturers to expand their production facilities. For example, in August 2022, analogue IC foundry GTA Semiconductor began its capacity expansion project in the Shanghai Pilot Free Trade Zone's Lingang Special Area.

Market Dynamics

Increasing 5G Penetration

The increasing adoption of 5G technology is driving demand for 5G-enabled smartphones and supporting the growth of the global application-specific integrated circuit market. High-speed data communication enabled by 5G is expected to promote industrial automation and the adoption of new technologies such as AI, IoT and so on. As more electronic devices are used to construct such infrastructure, demand for analogue circuits is likely to rise.

China is also one of the largest producers and users of consumer electronics. According to China Customs, the country exported around US$ 3.36 trillion in 2021, representing a 30% increase in export value over the previous year. Since consumer electronics and other electrical products account for a significant portion of export value, the global ASIC market is anticipated to show sustained growth.

Rising Demand for Communication Devices

The increased need for communication devices is driving the expansion of the application-specific integrated circuit (ASIC) market. The rapid growth of smartphones and smart home gadgets in recent years has boosted demand for integrated circuits in India and South Korea. The rapid adoption of fifth-generation (5G) wireless technology for digital devices is also an essential component in the increasing demand for linked devices and smart products, driving up the demand for ASICs.

According to the Korea Information Society Development Institute (KISDI), smartphone ownership in South Korea grew dramatically to 92.7% in 2021 from 91.2% in 2020 and 89.6% in 2019. Such a rise in smartphone adoption in the region is likely to increase the demand for application-specific ICs in the market.

Long Production Cycle and Limited Reusability

ASIC development often consists of numerous steps, including design, verification, fabrication and testing, resulting in lengthy development cycles. When compared to other semiconductor devices, such as FPGAs or general-purpose ICs, the time required to bring an ASIC to market tends to be higher. Companies' capacity to respond rapidly to market needs or technical improvements may be hampered by the increased development period, reducing their competitiveness.

ASICs tend to be developed for specialised purposes and may not be easily repurposed across products or industries. ASICs, unlike general-purpose ICs are designed for one particular function, making it difficult to repurpose them for multiple purposes. For organisations that need to produce many ASICs for different products or variations, this lack of reusability might limit cost savings and design efficiencies.

COVID-19 Impact Analysis

The COVID-19 pandemic had a severe impact on the integrated circuits industry, causing supply chain disruptions and a global manufacturing halt. However, several industries, such as healthcare, remote employment and online communication, saw increasing demand during the epidemic. ASICs utilised in medical equipment, telecommunication infrastructure, data centres and other key technologies have become increasingly important. As a result, there was a greater need for ASIC manufacture in these areas to match the increasing demand, while demand in other industries fell.

The pandemic accelerated digital transformation in a variety of businesses. As organisations and individuals became more reliant on digital services and technology, the need for ASICs to power advanced computing, artificial intelligence (AI) and other developing applications grew. This shift in demand patterns may have changed ASIC makers' strategic focus and product development roadmaps.

Russia- Ukraine War Impact

The Russian-Ukrainian conflict has heightened geopolitical tensions, which may have an indirect influence on the ASIC sector. Various governments may implement trade restrictions, sanctions or export/import laws as a result. Such measures have the potential to disrupt the flow of commodities and technologies, including ASICs, as well as cause uncertainty in the worldwide market.

Ukraine is responsible for 90% of the world's semiconductor-grade neon gas production. Neon is used by manufacturers to aid in the lithography and chip etching activities required to build memory chips and logic ICs. Because of the war, Ingas and Cryoin, two Ukrainian producing gas suppliers, have suspended operations in Mariupol and Moscow.

Furthermore, Ukraine is a significant supplier of semiconductor production materials such as palladium and hexafluorobutadiene (C4F6). Furthermore, prior to its invasion of Ukraine, Russia was a major supplier of production minerals such as nickel, palladium, platinum and aluminium.

Segment Analysis

The global application-specific integrated circuit (ASIC) market is segmented based on type, application, end-user and region.

Next-Generation Phones drives Consumer Electronis Growth

The consumer electronics is expected to grow with the highest CAGR in the global application-specific integrated circuit market during the forecast period 2023-2030. Users may develop next-generation smartphone designs using analogue integrated circuits and reference designs. Customers will benefit from industry power management and battery management technologies, as well as new smart amp technology that provides optimal sound quality, analogue and embedded goods.

For example, Motorola announced a collaboration with Guru Wireless in May 2021 to deliver remote wireless charging technology for smartphones, reducing the need for users to utilise cable chargers and charging pads. Furthermore, the wrist Smartphone is projected to gain popularity because users will no longer need to utilise another linked device such as a smartwatch to conduct various functions such as quick class and navigation, among others.

Geographical Analysis

Growing Demand for Smart Devices in Asia-Pacific

With growing digitalization and a surge in demand for smart devices, Asia-Pacific is expected to have the highest rate of growth in the application-specific integrated circuit (ASIC) market during the forecast period. The presence of many high-performance smart TV vendors in the region, such as Samsung Electronics and Sony Corporation, has accelerated their adoption. The companies are introducing new smart TVs in Asia-Pacific in response to increased demand in the region.

For example, in August 2021, Huawei released its largest smart TV in China. The 98-inch LCD Ultra HD 4K (3840 x 2160 pixels) display has a refresh rate of 120Hz, AiMaxCinema compatibility and a DCI-P3 colour gamut. It supports DTS and Dolby dual decoding in terms of audio. The developments offer opportunities for the growth of the global application-specific integrated circuit market.

Competitive Landscape

The major global players include: Seiko Epson Corporation, Honeywell International Inc., Infineon Technologies AG, Intel Corporation, Marvell, Maxim Integrated, Omnivision, Qualcomm Technologies, Inc., Renesas Electronics Corporation and STMicroelectronics.

Why Purchase the Report?

• To visualize the global application-specific integrated circuit (ASIC) market segmentation based on type, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of application-specific integrated circuit (ASIC) market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global application-specific integrated circuit (ASIC) market report would provide approximately 61 tables, 62 figures and 205 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies