PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1784118
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1784118
Global Semiconductor Fabless Market to Reach US$7.2 Billion by 2030
The global market for Semiconductor Fabless estimated at US$4.2 Billion in the year 2024, is expected to reach US$7.2 Billion by 2030, growing at a CAGR of 9.3% over the analysis period 2024-2030. Microcontrollers, one of the segments analyzed in the report, is expected to record a 11.3% CAGR and reach US$2.5 Billion by the end of the analysis period. Growth in the Digital Signal Processors segment is estimated at 6.4% CAGR over the analysis period.
The U.S. Market is Estimated at US$1.1 Billion While China is Forecast to Grow at 8.8% CAGR
The Semiconductor Fabless market in the U.S. is estimated at US$1.1 Billion in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$1.1 Billion by the year 2030 trailing a CAGR of 8.8% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 8.7% and 7.6% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 7.2% CAGR.
Global Semiconductor Fabless Market - Key Trends & Drivers Summarized
Why Is The Fabless Semiconductor Model Gaining Popularity?
The fabless semiconductor model is becoming increasingly dominant as chip design companies focus on innovation while outsourcing fabrication to specialized foundries. Fabless semiconductor companies develop cutting-edge processors, GPUs, and AI accelerators without maintaining their own manufacturing facilities, reducing capital expenditures and increasing flexibility. This business model enables companies such as Qualcomm, NVIDIA, AMD, and Broadcom to concentrate on research, chip architecture, and optimization while leveraging foundries like TSMC and Samsung for wafer production. With the rise of AI, IoT, and 5G applications, the demand for custom-designed, high-performance semiconductors is driving growth in the fabless segment.
What Technological Innovations Are Advancing The Fabless Semiconductor Industry?
Advancements in chiplet-based designs, AI-accelerated semiconductor design, and 3D integration are transforming the fabless semiconductor landscape. Companies are leveraging AI-driven design automation to optimize chip layouts, reduce power consumption, and accelerate time to market. The transition from monolithic chips to modular, heterogeneous architectures is enabling the development of more powerful and energy-efficient processors. Additionally, open-source chip design initiatives, such as RISC-V, are promoting greater innovation in the fabless semiconductor ecosystem. These technological advancements are making it easier for new players to enter the market while enhancing performance for AI, data center, and mobile computing applications.
Which Industries Are Driving The Demand For Fabless Semiconductors?
The consumer electronics sector is a major driver of fabless semiconductor demand, with smartphones, tablets, gaming consoles, and smart home devices requiring custom-designed chip solutions. The automotive industry is also embracing fabless semiconductors for ADAS, EV power management, and in-car connectivity. The growth of AI, cloud computing, and edge computing is further fueling demand for specialized processors from fabless companies. Additionally, the expansion of 5G infrastructure and the rise of semiconductor applications in healthcare, robotics, and industrial automation are contributing to market growth.
What Factors Are Fueling The Growth Of The Fabless Semiconductor Market?
The growth of the fabless semiconductor market is being driven by increasing demand for specialized, high-performance chips, the rapid evolution of AI and machine learning applications, and advancements in semiconductor design automation. The ongoing semiconductor shortage has also highlighted the advantages of the fabless model, allowing companies to remain agile and adjust to market demands. Additionally, government incentives for semiconductor R&D and domestic chip production are fostering innovation in the fabless sector. As semiconductor applications continue to diversify, the fabless model is expected to remain a key driver of the industry’s future.
SCOPE OF STUDY:
The report analyzes the Semiconductor Fabless market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Type (Microcontrollers, Digital Signal Processors, Graphic Processing, Application Specific Integrated Circuits, Power Management ICs, Others); End-Use (Consumer Electronics, Automotive, Industrial, Telecommunication, Healthcare, Others)
Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.
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