Application Specific Integrated Circuit Market 2020 and Forecast 2021-2027

                                          
Report Overview: Application Specific Integrated Circuit Market


The global application specific integrated circuit market size was valued at USD 13.9 billion in 2020 and looks set to grow at a compound annual growth rate (CAGR) of 4.1% from 2021 to 2027. The market is expected to witness an increase in demand at a global level owing to the growing use of application-specific integrated circuits (ASICs) in consumer electronics such as smartphones, smartwatches, and tablets. An ASIC is an integrated circuit specifically created for a specific application or purpose. These Integrated Circuits (ICs) are used to integrate all the electronic components on one chip. Also, these circuits can integrate the functions of several small and medium-sized integrated circuits that separately undertake some functions on a single chip, thereby assimilating the whole system on a single chip to recognize the system requirements. These ICs are used in various industries such as automotive, telecommunication, electrical and electronics, and medical.

The rapidly growing demand for smartphones and tablets is expected to drive the market for application-specific integrated circuits over the forecast period 2021-2027. According to GVR analysis, approximately 75.0% of the total mobile phone owners will own a smartphone by 2025. Application specific integrated circuits helps in providing high-bandwidth, smaller size and weight, low-cost, and long battery life requirements in next-generation smartphones. Also, with the advent of smart devices and electrical products such as televisions, digital cameras, laptops, wearables, and gaming consoles, offering advanced technologies such as flat screens, touch screen monitors and displays, and Bluetooth functions, demand for ICs is increasing. Furthermore, due to the constantly increasing adoption of mechatronics across the industrial and automotive applications, the demand for electronic components with ASICs has witnessed massive growth over the period of time.

Application specific integrated circuits were initially designed for their use in consumer electronics and telecommunication equipment. These ICs are now being used in automotive emission control, personal digital assistants, sensors, industrial, healthcare, and military and defense equipment. The significant use of application-specific integrated circuits in industrial applications including

Thermal Controller and 8 Bit Microcontrollers are having a considerable impact on the market for application-specific integrated circuit. Integration of these chips replaces traditional components including solder joints and Printed Circuit Board (PCB) traces with one IC, which helps in reducing the chances of failure and provide highly reliable industrial systems. Additionally, industries such as automotive, aerospace, defense, and military, which need highly consistent technological systems are using these chips to avoid the numerous electronic system failure instances in these industries.

On the other hand, factors such as the high cost of manufacturing customized circuits, circuit designing cost, and functional reliability issues are anticipated to hinder the growth of the market for an application specific integrated circuit over the years. However, with technological advancements such as big data analytics, Internet of Things (IoT), blockchain, and machine learning, the unit cost for application-specific integrated circuits has been declining, which, in turn, is leading to a positive impact on the market across the globe. The above-mentioned advancements are being extensively used in connected devices, data center facilities, and public clouds that allow the organizational data to move faster across the IT network. Thus, the organizations are incorporating these ICs to support the functioning of advanced technologies in devices, resulting in less operational cost. Also, the continuous evolution of the electronics industry is generating a constant need for improvement in application specific integrated circuit designs to cater to users’ exact requirements.

Product Type Insights: Application Specific Integrated Circuit Market

The semi-custom ASIC segment held the largest market share of 48.0% in 2019 and is also anticipated to dominate the market for application specific integrated circuit over the forecast period. The growth is attributed to its low complexity and a wide scope of applications as compared to other segments. The semi-custom ASIC is further bifurcated into two sub-segments, including cell based and array based. Besides, cell based ASIC held the largest share of approximately 70.0% in 2019, owing to its digital-logic and electrical features such as inductance and capacitance. These features offer improved electrical performance and high density of the component. Moreover, the cell-based ASICs can be used in any product, irrespective of the design complexity as it has advanced integrated static random access memory and internet protocol cores, which helps in smooth functioning of the system.

The full-custom ASIC segment is expected to register considerable growth by 2027. These ICs provide faster and reliable performance with intellectual property protection using a lesser amount of electrical power. Besides, the full custom ASIC allows designers to customize logic cells, mechanical structures, layouts and circuits, and optimize memory cell, on an IC, which helps to decrease processing time and risks. However, due to its complex design the manufacturing time for these application specific integrated circuits is eight weeks for a specific application, which is more than semi-custom ASICs.

Application Insights: Application Specific Integrated Circuit Market

In 2019, the consumer electronics segment accounted for more than 34.0% of the global market share. The consumer electronics vertical is anticipated to offer significant growth opportunities for all the players involved in the value chain on the back of the increasing use of ASICs within phones, tablets, and laptops across the globe. These ASICs offer various advantages including low power consumption, IP security, small size, and higher bandwidth, leading to increased adoption of the ICs in the consumer electronics industry. Moreover, the rapid advancement of electronic devices is enabling a stable performance and energy efficiency, propelling the application specific integrated circuit market growth. Other than consumer electronics vertical, these ICs are used in multiple verticals such as telecommunication, industrial, and healthcare.

The industrial segment of the ASIC market is expected to witness considerable growth over the forecast period. Application specific integrated circuits replace traditional components such as solder joints and PCB traces with one IC, which in turn helps to reduce the chances of failure and offer reliable industrial systems. Furthermore, the increasing adoption of various components such as microcontrollers, programmable timer, and thermal controllers in industrial applications is propelling the market growth. Besides, there are numerous manufacturers in the market for application specific integrated circuit offering IC chips specifically designed for industrial usage. For instance, Custom Silicon Solutions, Inc., a semiconductor company offers custom ''Mixed Signal'' technology. The company’s CSS555C industrial application specific integrated circuit is an improved version of its 555 timer. This CSS555C industrial ASIC draws 10.0% less power than other 555 timer devices.

Regional Insights: Application Specific Integrated Circuit Market

North America held a market share of more than 20.0% in 2019. The growth is attributed to the significant presence of prominent players in the region including Maxim Integrated Products Inc.; Qualcomm Inc.; Intel Corporation; and Texas Instruments Inc. In the current market scenario, the U.S. dominates the region. High development in consumer electronics products, healthcare monitoring systems, and electric and hybrid vehicles can be seen in the U.S. Being early adopters of the ASIC technology, North America is home to a large number of application specific integrated circuit manufacturers and solution providers.

Asia Pacific is anticipated to emerge as the fastest-growing region over the forecast period. The growth is attributed to the rapidly increasing demand for energy-efficient devices along with the rising penetration of smartphones in the region. Developing economies such as China, Japan, and India are also supporting market growth due to various factors such as growing digitization, growing penetration of high-tech gadgets, advancement of automotive electronics, and increased need for miniaturization. Moreover, the presence of a large number of semiconductor companies in the region, such as Infineon technologies along with key consumer electronics companies such as LG Electronics and Samsung Electronics Co, Ltd. is propelling market growth.

Moreover, the evolution in technological transformation in consumer electronics and automotive industries in countries such as India, China, South Korea, and Japan is anticipated to drive the market for application specific integrated circuits in the region. The technological advancements such as temperature sensors and power management in devices including smartphones, household appliances, wireless headphones, and speakers are increasing the incorporation of ASICs in the systems.

Moreover, the COVID-19 pandemic which recently spread across Asia Pacific countries, especially China, has highly impacted the growth of the regional market. Other than China there are various other countries in the region that are major contributors in the market including Taiwan, Singapore, South Korea, and have also affected due to this pandemic. However, considering the fact that China is coming close to its recovery phase, it is anticipated the impact of this pandemic on the growth of China's market would be low compared to the other countries such as U.S, Germany, Italy, and Spain.

Key Companies & Market Share Insights: Application Specific Integrated Circuit Market

Application specific integrated circuit providers are focusing on research and development, which in turn would help increase their presence in the market. For instance, in March 2019, Infineon Technologies AG announced to launch XDPE132G5C, a 16-phase digital PWM multiphase controller. The launch was intended to expand its high current system chipset solutions product portfolio. The new XDPE132G5C will allow the current of 500 to 1000 A and above for next-generation FPGA, CPUs, ASICs, and GPUs used in 5G datacom applications and artificial intelligence (AI) servers. Some of the prominent players in the application specific integrated circuits market include:

Key companies Profiled: Application Specific Integrated Circuit Market Report

 	
Infineon Technologies AG
 	
Semiconductor Components Industries, LLC
 	
OmniVision Technologies
 	
Tekmos Inc.
 	
Seiko Epson Corporation
 	
Socionext America Inc.
 	
Intel Corporation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Trusted Business Insights has segmented the global application specific integrated circuit market report on the basis of product type, application, and region:

Product Type Outlook (Revenue, USD Million, 2016 - 2027)

 	
Full Custom ASIC
 	
Semi-Custom ASIC
 	
Cell Based
 	
Array Based
 	
Programmable ASIC

Application Outlook (Revenue, USD Million, 2016 - 2027)

 	
Telecommunication
 	
Industrial
 	
Automotive
 	
Consumer Electronics
 	
Others