"Electrifying your pathway to success through in-depth market research"

Integrated Circuit Market Size, Share & COVID-19 Impact Analysis, By Product Type (Logic, Memory, Micro, and Analog), By Application (Standard PCs, Cellphones/Tablets, Automotive, Internet of Things (IoT), Servers, TVs/Set Top Box, Gaming Consoles, and Others), and Regional Forecast, 2021-2028

Region : Global | Format: PDF | Report ID: FBI106522

 

KEY MARKET INSIGHTS

Play Audio Listen to Audio Version

The global integrated circuit market size was USD 437.71 billion in 2020 and is projected to grow from USD 489.31 billion in 2021 to USD 1,136.98 billion in 2028, at a CAGR of 12.8% during the 2021-2028 period. The global impact of COVID-19 has been unprecedented and staggering, with witnessing a negative impact on demand across all regions amid the pandemic. Based on our analysis, the global market exhibited a lower growth of 9.2% in 2020 as compared to the average year-on-year growth during 2016-2019. The rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.


The trends for 5G connectivity, advanced driver assistance system (ADAS) in automotive vehicles, cloud computing, and IoT-based devices are anticipated to drive the market growth. Additionally, the development of novel technologies and high-end cellphones and compact electronic devices are expected to fuel the market growth.


COVID-19 IMPACT


Substantial Effects of International Trade and Difficulties in Procurement of Raw Materials to Obstruct Market Growth


The COVID-19 pandemic has affected numerous prominent economies across the globe creating a severe cash crunch and reducing cash liquidity. Thus, most of the investors and manufacturers operating with a pessimistic approach slowed the growth pace of the market. Additionally, sanctions on cross-border trade of non-essential goods hampered import export of ICs from manufacturers of Asia Pacific to other regions, reducing sales in different regions.


The breakdown of the value chain and supply chain of semiconductor during the initial period of the pandemic had severely derailed the development prospects of the market. Furthermore, long-term restriction imposed on the operations of the manufacturing facilities and unplanned and hassled shutdown of numerous manufacturing clusters increased a massive supply demand gap reducing the extensive possible development prospects of the market.


LATEST TRENDS


Request a Free sample to learn more about this report.


Substantial Demand for ICs in Automotive Sector and IoT-based Devices to Provide Noteworthy Growth of Market


The extensive research and development operations, such as advanced driver assistance systems undertaken by numerous major players of automotive vehicles, augment the demand for the products. Additionally, increasing opportunities for IoT-based devices have amplified the requirements of analog ICs, digital IC, and microcontroller sensors in automated equipment and IoT devices. For instance, continuous efforts to introduce developed and advanced automotive infotainment installations, such as modern entertainment and information setup or precise GPS tracking and navigations, will propel the demand and subsequent sales of automotive microcontrollers (MCU). Furthermore, electric vehicles have registered heavy increment in their sales due to high volatility in fuel prices and also subsidies offered by numerous governments to boost EV sales. The manufacturing of electric vehicles is an eminent factor, which is anticipated to provide new growth horizons for the market.


Automotive infotainment systems are expected to account for 10% of market share whereas other parts of the automotive vehicle are estimated to represent 90% of the microcontroller sales. The other parts, which constituted 90% of the sales are advanced driver assistance systems, power windows, engine controls, battery management systems, electric steering, power brakes, and others. The trend for interconnected and autonomous vehicles, coupled with advanced and easy driving controls using smart sensors and integrated circuit equipped devices, will exhibit commendable performance of the market across various parts of the globe.


DRIVING FACTORS


High Growth in Use of Smartphone and Steadfast Development of Mechatronics in Industrial Sectors to Promote Healthy Growth 


Now a day, to increase the product’s presence across the global market and foster its appeal within the customers, many IC manufacturers are trying to address the custom requirements of the consumers. The manufacturers are engaged in development of custom made integrated circuits capable of providing all the major basic electronic components in a single chip. According to recent statistics published by the Semiconductor Industry Association (SIA), the global sales of semiconductors recorded a thumping growth of about 24% in October 2021 to reach to decent sales of almost USD 49 billion as compared to the sales in the same month in the preceding year. The massive growth helped the industry to accumulate an additional USD 400 million providing an optimistic performance to the market over the forecast period.


Additionally, the setup of next-generation telecommunication networks, such as 5G cellular services, demands a holistic change in the infrastructure setup. The soaring application of quantum computing and artificial intelligence is the pivotal factor estimated to boost the market growth over the course of time.


RESTRAINING FACTORS


Low Chances of Repair or Re-fabrication and Inability to Operate at Low Temperature Coefficient to Deter Market Sales


The integrated circuit operates as a compiled set of electronic unit installed on a semiconductor material such as silicon. Thus, it acts as a compact unit comprising different electronic components, which reduce size and intricate component assembly in any electronic device. Thus, if one component in the IC chip fails, the complete IC chip is required to be replaced and it is impossible to repair or modify the circuit, thereby increasing the maintenance cost of the devices. Furthermore, the integrated circuit has a potential inability to achieve low temperature coefficient, which makes it inappropriate to operate in harsh environment and freezing temperatures. The ICs are also less pliant and cannot operate effectively if they are not properly installed or rashly handled. These circuits are also susceptible to failure if exposed to excessive heat, which also makes them vulnerable for operation in high temperature environments.


Analog IC as well as digital IC cannot achieve high voltage operation with low operational noise. These circuits are capable of handling limited amount of power. Thus, when the operations in high powered events are required, the IC units require extension to operate properly and effectively.


SEGMENTATION


By Product Type Analysis


To know how our report can help streamline your business, Speak to Analyst


Logic and Memory Segments to Collectively Dominate Global Market


By product type, the market is classified into logic, memory, micro, and analog. The increasing use of logic gates in the device has elevated the sales of logic segment across numerous regions. The use of memory ICs to store, refresh, and retrieve data at a faster rate has enhanced the application of memory at a substantial pace. The memory IC has a high density level and is capable to store higher amount of data.


Furthermore, dynamic random access memory ICs are modern memory ICs and capable of deleting and refreshing data at the same time. Its simple assembly and less intricate design make it more apt for installation in diverse electronic units.


By Application Analysis


Standard PCs Application to Retain its Substantial Share in Market Over Forecast Period


By application, the global market is classified into standard PCs, cellphones/tablets, automotive, Internet of Things (IoT), servers, TVs/set top box, gaming consoles, and others. Standard PCs segment is estimated to exhibit lion’s share in the global market followed by cellphones and tablets. Spurring manufacturing and sales of laptops, high end personal computers, and advanced smartphones are collectively reinforcing the momentous sales of the market. However, in terms of market growth, IoT and automotive segments are projected to substantiate their developments during the slated course of time. Automotive ICs, often referred as the microcontrollers, have emerged as a vital component in the vehicle system since the inception of concepts such as autonomous driving, advanced driver assistance systems, and connected vehicle ecosystem. Furthermore, heavy focus on automation in the parking system, vehicle navigation, and vehicle health checkups are cementing the requirement and installation of integrated circuits in the global market.


REGIONAL INSIGHTS


North America Integrated Circuit Market Size, 2020 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample


Region wise, the market is classified into North America, Europe, South America, the Middle East & Africa, and Asia Pacific. North America is expected to grow and account for a dominating integrated circuit market share across the globe. The effective performance of the global leaders and promising performance of the application sectors in the regional market are ensuring noteworthy share of the region outpacing all the other regions. Established automotive manufacturing in Detroit is generating considerable demand for automotive microcontrollers. Expansion of automotive manufacturing clusters in Canada is collectively driving the developments across North America.


India to Exhibit Promising Growth with Exhaustive Push by Government Chip Design Related Activities


In terms of development prospects, India is anticipated to retain its dominant presence throughout the forecast period. The presence of highly-abled wafer fabrication facilities, such as Semiconductor Laboratory (SCL), Gallium Arsenide Enabling Technology Center (GAETEC), and Society for Integrated Circuit Technology and Applied Research (SITAR), are fulfilling the strategic requirements for chip design and development across the country. The increased sales of IoT integrated home maintenance equipment, proliferation of personal computers in manufacturing sectors, and different industries contribute to a significant growth in the market.


The increasing demand for electric automotive vehicles or connected vehicles in conventional automobiles imbibed with smart connectivity, smart tires, electric steering, and IoT integrated operation is propelling the integrated circuit market growth across Europe. Additionally, extensive integration of smart desktops and laptops, tablets, and smartphones is another high performing market segment. The manufacturing of advanced, complex, efficient, and custom designed ICs by the active market vendors is augmenting sales of these circuits across end-use applications.


In South America, the high amount of supply demand imbalance and the uncertain demand for the products limit the market development opportunities. Heavy hindrance to the supply chain and inability to engage in the direct customer reach also curb market growth in the region. South America provides limited customer base due to minimal manufacturing bases and clusters of automotive vehicles and electrical devices in the aforementioned region.


To know how our report can help streamline your business, Speak to Analyst


Asia Pacific is expected to grow with an optimistic market growth rate during the forecast period. Japan and China cater as the regional markets for many major players and highly developing market vendors. Focus of these players on research and development operations and development of enhanced and effective market products also aid reasonable market growth. Furthermore, the initiatives taken by federal government of India to bolster indigenous production of chips and other semiconductor devices can prove as a decisive factor in the development of the market. There are high development opportunities in India and holistic market landscape in far eastern countries, such as South Korea and Japan, to reinforce market development prospects in Asia Pacific.


KEY INDUSTRY PLAYERS


Key Companies Focus on Collaborations and Joint Ventures across Various Regions


Key manufacturers in this market are focusing on the development of better and advanced products and are operating extensively to achieve technological superiority. Moreover, major players operating in the market are making investments for establishment of manufacturing facilities in diverse regions across the globe. The companies are trying to meet massive increment in the demand for ICs in the market. The strong presence of market players in the opportunistic regions, such as Asia Pacific and North America, is expected to aid the aim of manufacturers to establish themselves as prominent global manufacturers.


Additionally, market players are currently in talks for possible strategic mergers and acquisitions of smaller entities. The mergers and acquisition of the entities operating in the regions with higher growth prospects are more sought after by global and established market players. These mergers and acquisitions are helping the companies to reduce the intensity of fierce competitive landscape and also increase the presence of the companies in foreign regions.


LIST OF KEY COMPANIES PROFILED:



KEY INDUSTRY DEVELOPMENTS:



  • December 2021: On behalf of the central government of India, the IT minister announced the keen interest of government in developing and enhancing the Electronics System Design and Manufacturing (ESDM) sector. The government has made a hefty investment of USD 13.4 million to advance chip design related activities in the current ongoing fiscal year.

  • December 2021: Taiwan Semiconductor Manufacturing Company and Sony, which operates as a two of the prominent semiconductor equipment and chips manufacturers, announced that they would invest USD 7 billion to establish a chip manufacturing facility in Japan. Furthermore, Sony announced an investment of USD 500 million for establishment of the facility.


REPORT COVERAGE


An Infographic Representation of Integrated Circuit Market

To get information on various segments, share your queries with us



The global integrated circuit market report provides an in-depth analysis of the industry dynamics and competitive landscape. The report also provides market estimation and forecast based on product type, applications, and regions. It provides various key insights, including recent industry developments in the market, such as mergers & acquisitions, macro and microeconomic factors, SWOT analysis, and company profiles.


Report Scope & Segmentation


















































  ATTRIBUTE



  DETAILS



Study Period



2017-2028



Base Year



2020



Estimated Year



 2021



Forecast Period



2021-2028



Historical Period



2017-2019



Unit



Value (USD Billion)



Segmentation



By Product Type, Application, and Region



By Product Type




  • Logic

  • Memory

  • Micro

  • Analog  



By Application




  • Standard PCs

  • Cellphones/Tablets

  • Automotive

  • Internet of Things (IoT)

  • Servers

  • TVs/Set Top Box

  • Gaming Consoles

  • Others



By Region




  • North America (By Product Type, Application, and Country)

    • U.S. (By Product Type)

    • Canada (By Product Type)

    • Mexico (By Product Type)



  • Europe (By Product Type, Application, and Country)

    • U.K. (By Product Type)

    • Germany (By Product Type)

    • France (By Product Type)

    • Italy (By Product Type)

    • Spain (By Product Type)

    • Russia (By Product Type)

    • BENELUX (By Product Type)

    • Nordics (By Product Type)

    • Rest of Europe



  • Asia Pacific (By Product Type, Application, and Country)

    • China (By Product Type)

    • India (By Product Type)

    • Japan (By Product Type)

    • South Korea (By Product Type)

    • ASEAN Countries (By Product Type)

    • Australia (By Product Type)

    • Rest of Asia Pacific



  • Middle East & Africa (By Product Type, Application, and Country)

    • GCC (By Product Type)

    • South Africa (By Product Type)

    • Rest of Middle East & Africa



  • South America (By Product Type, Application, and Country)

    • Brazil (By Product Type)

    • Argentina (By Product Type)

    • Colombia (By Product Type)

    • Rest of South America





Frequently Asked Questions

Fortune Business Insights says that the global market size was USD 437.71 billion in 2020 and is projected to reach USD 1,136.98 billion by 2028.

In 2020, the North America market value stood at USD 192.38 billion.

Registering a CAGR of 12.8%, the market will exhibit substantial growth during the forecast period (2021-2028).

By application, the standard PCs segment is expected to lead this market during the forecast period.

Heavy growth in use of smartphone and related devices and steadfast development of mechatronics in industrial sectors are the key factors driving the market.

Intel Corporation, Qualcomm Technologies, Inc., Toshiba Electronic Devices & Storage Corporation, and Texas Instruments are the major players in the global market.

North America dominated the market in terms of share in 2020.

Low chances of repair or re-fabrication and inability to operate at low temperature coefficient to deter the market sales, and thus hinder the adoption of the product.

Logic segment is expected to drive the adoption of the product during the forecast period.

Substantial demand for ICs in automotive sector and IoT based devices is identified as the current market trend.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • Mar, 2022
  • 2020
  • 2017-2019
  • 120

    CHOOSE LICENSE TYPE

  • $4850
    $5850
    $6850

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Client Testimonials

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.
X