The integrated circuit market size is expected to reach over US$ XX billion by 2028. The growing penetration of smartphones along with the rising prevalence of 5G worldwide are the major factors for integrated circuit market growth. The integrated circuit report further mentions that the market size stood at US$ XX billion in 2019, and it is likely to exhibit a CAGR of 5.6% during the forecast period between 2020 to 2028.
The Increased Prevalence of Smartphones and Connected Devices
The growing prevalence of mobile devices and connected devices along with the rising adoption of integrated circuits across industry verticals such as automotive, consumer electronics devices, LED lighting, and others are the key factors for the growth of the global integrated circuits market. According to a report published in 2020, by Global System for Mobile Communications Association (GSMA) the global unique mobile subscribers in 2019 were 5.2 Bn out of which 65% are smartphones. Furthermore, as per the same report, the unique mobile subscribers are anticipated to reach over 5.8 Bn by 2025 and the penetration of smartphones is anticipated to reach over 80% by 2025. Thus, the demand for integrated circuits is presumed to witness significant growth in the upcoming years.
Increasing demand for Consumer Electronics in Developing Economies
The increasing demand for consumer electronics products such as smartphones, smartwatches, smart TVs, and others in developing economies such as India, China, Brazil, and others is another key factor for the global integrated circuits market growth over the years to come. The growing use of integrated circuits in the third, fourth, and fifth-generation (3G/4G/5G) along with portable device batteries are some other key factors anticipated to enhance the market growth during the forecast period.
Alchemy Research and Analytics LLP, had taken the impact of the ongoing COVID-19 pandemic on the integrated circuit market for the year 2020 and 2021. As per our extensive secondary and primary research, the demand for integrated circuits has increased in the COVID-19 period owing to the increased demand for consumer electronics products such as smartphones, tablets, and others. However, the severe impact of the COVID-19 pandemic on the manufacturing industry across the globe had reduced the supply of integrated circuits worldwide owing to which the growth of the integrated circuit market in the year 2020 and 2021 impacted severely.
Key Manufacturers Aim to Enhance Their Portfolios by Partnerships
According to Alchemy Research and Analytics major market players in the integrated circuit market are focusing on strategies such as partnerships, collaboration, acquisitions, and mergers to enhance their geographic presence as well as product portfolio. The integrated circuit market is highly dynamic and it is mostly dominated by big players.
Alchemy Market Research lists out the names of key market players in the integrated circuit market. They are as follows:
- Texas Instruments
- Derf Electronics Corporation
- Infineon Technologies AG
- Intel Corporation
- Qualcomm Technologies Inc.
- Richtek Technology
- Maxim Integrated Products
- Analog Devices Inc.
- Microchip Technology Inc.
A Significant Industry Development-
- June 2020: Infineon Technologies AG announced that it will supply chipsets of Insulated Gate Bipolar Transistor (IGBTs) and diodes to the Danfoss Silicon Power business unit. The chips are mainly used in power modules for inverters that control the motors in electric vehicles. Danfoss manufactures its power modules in Flensburg, Germany, and Utica, New York, USA
Further Report Findings-
- In 2019, Asia Pacific dominated the global integrated circuits market and presumed to witness the fastest growth during the forecast period due to rising demand for consumer electronic products such as smartphones, smartwatches, tablets, and others. The growing demand for healthcare devices and rising manufacturing industry in the region is another key factor for regional dominance in the global integrated circuits market,
- North America accounted for a significant share in the global integrated circuits market in 2019 owing to the growing demand for integrated circuits in the aerospace, infrastructural, industrial applications, and others in the region.
- Based on Type, the digital integrated circuit category is anticipated to witness significant growth during the forecast period owing to the rising demand for digital integrated circuits in the automotive industry.