PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1795282
PUBLISHER: Global Industry Analysts, Inc. | PRODUCT CODE: 1795282
Global Next Generation Integrated Circuits Market to Reach US$3.8 Billion by 2030
The global market for Next Generation Integrated Circuits estimated at US$1.5 Billion in the year 2024, is expected to reach US$3.8 Billion by 2030, growing at a CAGR of 16.8% over the analysis period 2024-2030. Lasers Component, one of the segments analyzed in the report, is expected to record a 18.6% CAGR and reach US$1.9 Billion by the end of the analysis period. Growth in the Modulators Component segment is estimated at 14.0% CAGR over the analysis period.
The U.S. Market is Estimated at US$394.4 Million While China is Forecast to Grow at 15.7% CAGR
The Next Generation Integrated Circuits market in the U.S. is estimated at US$394.4 Million in the year 2024. China, the world's second largest economy, is forecast to reach a projected market size of US$584.4 Million by the year 2030 trailing a CAGR of 15.7% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 15.7% and 14.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 12.1% CAGR.
Global Next Generation Integrated Circuits Market - Key Trends & Drivers Summarized
How Are Architectural Shifts Transforming Integrated Circuit Design?
Next generation integrated circuits (ICs) are being shaped by a shift away from traditional monolithic architectures toward more flexible and efficient configurations. Key developments include chiplets, 3D stacking, and heterogeneous integration, allowing multiple functional components to be combined into a single package. These approaches offer performance improvements while managing power consumption and reducing footprint. As semiconductor nodes approach physical limits, new design philosophies are required to maintain advancement in logic density and compute efficiency.
Chiplet-based architectures are gaining popularity, especially in high-performance computing and AI accelerators. These allow designers to combine components such as CPUs, GPUs, and memory modules with greater customization and yield efficiency. 3D ICs and through-silicon via (TSV) technologies are also enabling tighter integration of logic and memory, reducing latency and improving bandwidth. These innovations reflect the broader industry shift from transistor scaling to system-level innovation as the new driver of IC evolution.
What Role Do Materials and Fabrication Techniques Play in Innovation?
Material innovations are central to the development of next generation ICs. Use of silicon carbide, gallium nitride, and other wide-bandgap semiconductors is expanding, particularly in power electronics and high-frequency applications. These materials offer improved thermal performance, higher breakdown voltages, and faster switching, making them ideal for next-gen circuits used in electric vehicles, aerospace, and industrial automation systems.
On the fabrication side, extreme ultraviolet (EUV) lithography is enabling more precise patterning at advanced process nodes below 7nm. This is critical for integrating more transistors per chip while minimizing leakage and improving energy efficiency. Alongside, back-end-of-line (BEOL) process enhancements and novel interconnect solutions are supporting the high-density integration needed in modern ICs. Together, these advances in materials and manufacturing are laying the foundation for the next phase of semiconductor performance gains.
Why Is the End-Use Landscape Diversifying for Next Gen ICs?
Next generation integrated circuits are being rapidly adopted across a widening range of industries. Data centers and AI-focused hardware lead in terms of demand, as they require increasingly powerful and efficient compute systems. Consumer electronics, particularly smartphones and wearables, continue to benefit from energy-efficient SoC designs that integrate multiple functions on a single chip. Automotive systems, especially those involving autonomous driving and electric powertrains, also require specialized ICs capable of operating under strict thermal and safety constraints.
Industrial IoT, robotics, and edge computing applications are also contributing to demand, as they require customized ICs that combine sensing, processing, and communication capabilities. In the healthcare sector, miniaturized and high-performance ICs are essential for portable diagnostics, smart implants, and real-time patient monitoring. The market is no longer dominated by general-purpose chips alone-sector-specific requirements are driving the need for tailored IC solutions that combine performance, security, and reliability.
Growth in the next generation integrated circuits market is driven by several factors.
Rising demand for computing performance and energy efficiency in AI, data centers, and edge devices is pushing innovation in IC architecture and materials. The shift toward heterogeneous integration and chiplet-based design is enabling modularity, yield improvement, and scalability. Expansion of EVs, 5G networks, and industrial automation is increasing the need for ICs that perform under high power, frequency, and thermal constraints. Use of advanced fabrication techniques, such as EUV lithography and 3D integration, is allowing further miniaturization and functionality enhancement. Growth in custom ICs for industry-specific applications is also accelerating adoption across healthcare, automotive, aerospace, and consumer sectors.
SCOPE OF STUDY:
The report analyzes the Next Generation Integrated Circuits market in terms of units by the following Segments, and Geographic Regions/Countries:
Segments:
Component (Lasers Component, Modulators Component, Photo Detectors Component, Attenuators Component, Optical Amplifiers Component); Technology (Analog Technology, Digital Technology); Application (Industrial Application, Consumer Electronics Application, Automotive Application, Aerospace & Defense Application, IT & Telecom Application, Other Applications)
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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