Application Specific Integrated Circuits (ASICs) Market to Reach USD 30.99 Billion by 2032, Growing at a CAGR of 6.43% | Credence Research Inc.

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Jan 21, 2025, 12:43 ET

PUNE, India, Jan. 21, 2025 /PRNewswire/ -- Market Size Overview of Application Specific Integrated Circuits (ASICs)

The market for Application Specific Integrated Circuits (ASICs) is experiencing significant growth. Valued at USD 17,581.25 million in 2023, it is anticipated to reach USD 30,988.25 million by 2032. This growth reflects a compound annual growth rate (CAGR) of 6.43% from 2024 to 2032. ASICs continue to gain traction across diverse applications due to their efficiency, customization, and performance benefits, positioning the market for sustained expansion over the forecast period.

Market Drivers of Application Specific Integrated Circuits (ASICs)

The market for Application Specific Integrated Circuits (ASICs) is propelled by several influential drivers, primarily rooted in technological evolution and growing industry-specific demand. The customization and optimization capabilities of ASICs allow for high performance and efficiency, making them essential in applications requiring precision and speed.

Technological Advancements

Breakthroughs in semiconductor technology have significantly enhanced ASIC design and functionality. These developments enable reduced power consumption, higher processing speeds, and miniaturization, making ASICs ideal for compact electronic devices and advanced industrial equipment. For example, emerging nodes like 5 nm and 3 nm facilitate greater density and performance, supporting demanding applications like artificial intelligence (AI) and 5G networks. The transition to these advanced nodes has been driven by the need for improved power efficiency and performance, with 5 nm nodes offering up to 15% speed improvement and 30% power reduction compared to their predecessors.

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Growing Demand in Industry Applications

ASICs are pivotal in the rapid evolution of AI and machine learning. Their ability to perform specific tasks with high efficiency makes them indispensable in training AI models and real-time data processing. The global AI market, which heavily relies on ASICs, is projected to grow from $189.72 billion in 2023 to $1689.3 billion by 2032, reflecting a CAGR of 27.5%. Similarly, the automotive sector relies on ASICs for advanced driver-assistance systems (ADAS), autonomous driving, and electronic control units. The global adoption of electric vehicles (EVs) further underscores this trend, as ASICs play a crucial role in battery management and powertrain control systems.

IoT and 5G Expansion

With the Internet of Things (IoT) growing at an unprecedented speed, ASICs ensure seamless connectivity and device functionality. The number of IoT devices worldwide is forecast to almost double from 15.9 billion in 2023 to more than 32.1 billion by 2030. Combined with the rollout of 5G, ASICs support ultra-reliable and low-latency communications, strengthening their market presence across telecommunications and consumer electronics. The 5G chipset market, which includes ASICs, is projected to grow from $39.03 billion in 2023 to $457.5 billion by 2032, exhibiting a CAGR of 35.9%.

Growth Opportunities in the Application Specific Integrated Circuits (ASICs) Market

The ASICs market presents substantial growth opportunities, particularly through innovations in AI, IoT, and 5G technologies. These technologies demand ASICs for their high efficiency and specialization. Businesses can leverage these opportunities by focusing on creating chips tailored for AI applications, such as neural network acceleration or real-time data analysis. The expansion of IoT devices requires low-power, high-performance ASICs for seamless connectivity across smart homes, industries, and wearables. Additionally, the global adoption of 5G networks invites investments in ASICs that optimize network infrastructure and mobile devices. Companies positioned to align their products with these trends will gain a competitive edge.

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Application Specific Integrated Circuits (ASICs) Market Segmentation

Type of ASIC:

Full Custom ASICs
Semi-Custom ASICs (Standard Cell ASICs)
Programmable ASICs (FPGA-based ASICs)

Application:

Telecommunications
Consumer Electronics
Automotive
Industrial Automation
Medical Electronics
Aerospace and Defense
Data Centers and Cloud Computing
IoT (Internet of Things)
Blockchain and Cryptocurrency
AI (Artificial Intelligence) and Machine Learning

By Region

North America

US
Canada
Mexico

Europe

Germany
France
UK.
Italy
Spain
Rest of Europe

Asia Pacific

China
Japan
India
South Korea
South-east Asia
Rest of Asia Pacific

Latin America

Brazil
Argentina
Rest of Latin America

Middle East & Africa

GCC Countries
South Africa
Rest of Middle East and Africa

Regional Analysis of the Application Specific Integrated Circuits (ASICs) Market

North America

North America holds a significant share of the ASICs market, driven by the robust presence of key semiconductor manufacturers and tech giants. High investments in R&D for AI, machine learning, and autonomous driving technologies propel demand. For instance, the U.S. government has implemented various initiatives to support AI and autonomous driving research. Additionally, the growing adoption of electric vehicles (EVs) and advancements in 5G infrastructure amplify the need for customized ASIC solutions in this region. The U.S. has nearly 50,000 EV charging stations, and significant investments are being made in 5G infrastructure.

Europe

Europe's ASICs market growth is fueled by innovations in the automotive and industrial sectors. The strong focus on electric and autonomous vehicles drives ASIC deployment in ADAS and battery management systems. The European automotive industry, which employs over 14 million people and contributes about 7% to the region's GDP, is a major driver of this demand. Industries aiming to modernize production processes with industrial automation also leverage ASICs for high precision and optimized performance. Europe is home to leading companies in analog, mixed-signal, and high-voltage ASIC design.

Asia-Pacific

Asia-Pacific dominates the ASICs market, attributable to its massive consumer electronics and semiconductor manufacturing hubs, particularly in China, South Korea, and Taiwan. China alone produces over 70% of the world's smartphones. The region's leadership in 5G deployment and the rapid expansion of IoT devices create substantial opportunities. Asia-Pacific countries are expected to add almost $130 billion to their economies through 5G by 2030. Growing EV adoption in countries like China and India further accelerates ASIC demand, particularly for energy-efficient designs. China is a global leader in EV production and adoption.

Other Regions

Regions such as Latin America, the Middle East, and Africa exhibit steady growth potential, driven by increasing telecommunications infrastructure and IoT adoption. The development of smart cities and digitization initiatives also open doors for ASIC manufacturers to tap into emerging markets.

Each region's unique focus areas and demand drivers collectively shape the global ASICs market, fostering growth and innovation.

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Top Companies –

Broadcom Inc.
STMicroelectronics
Faraday Technology Corporation
Comport Data
FUJITSU
Infineon Technologies AG
Intel Corporation
ASIX Electronics
OmniVision Technologies, Inc.
Semiconductor Components Industries, LLC
Seiko Epson Corporation
DWIN Technology
Socionext America Inc.
Tekmos Inc.
Others

Latest Developments:

October 2024: OpenAI, an artificial intelligence company, partnered with Broadcom Inc., a provider of application-specific integrated circuits (ASICs), to develop an AI chip aimed at improving the efficiency of AI model inference.
July 2024: STMicroelectronics launched the world's largest cinema image sensor, specifically designed for large-scale cinema applications, underscoring its advancements in sensor technology and innovation in the imaging market.
February 2024: Broadcom Inc. reported record revenue of USD 13,072 million for Q3 2024, a 47% year-over-year increase, driven by robust demand for AI-related products and innovations in 5G and networking.
July 2023: Faraday Technology Corporation launched its SerDes total solution, featuring SerDes IP design on UMC 28nm and the corresponding IP Advanced (IPA) service. This solution is designed to accelerate customer integration.
September 2023: Intel announced plans to create an ASIC accelerator to minimize performance overhead in Fully Homomorphic Encryption (FHE). The company also revealed its intention to release a beta version of an encrypted computing software toolkit for developers.
September 2023: Infineon Technologies AG launched a new line of OptiMOS power MOSFETs to enhance efficiency and performance in power management applications.
August 2022: Broadcom Inc. introduced the StrataXGS Tomahawk 5 switch series, offering 51.2 terabits per second of Ethernet ASIC switching capacity in a single, monolithic device.
April 2022: Intel unveiled the Intel Blockscale ASIC, a result of extensive R&D. This ASIC provides efficient hashing for proof-of-work consensus networks.
July 2022: Faraday Technology Corporation introduced its FPGA-Go-ASIC prototyping platform, enabling customers to accelerate circuit creation and verification processes, enhancing its ASIC design services.
February 2022: MIT researchers developed an ASIC chip designed to defend IoT devices against power-based side-channel attacks. The chip employs threshold computing, splitting data into random components for secure processing.
March 2021: Intel and the U.S. Defense Advanced Research Projects Agency (DARPA) initiated a three-year collaboration under the SAHARA project (Structured Array Hardware for Automatically Realized Applications) to advance domestically produced structured ASIC platforms with cutting-edge security countermeasures.
February 2021: Renesas Electronics Corporation acquired Dialog Semiconductor Plc, a provider of power management, charging, AC/DC power conversion, and ASICs, in a deal valued at approximately USD 5 billion.
June 2021: Taiwan-based IC design houses expressed optimism for increased shipments in Q3 2021 due to the rollout of 5G-enabled smartphones by Chinese brands. They anticipated over 10% sequential growth in order volumes, driven by higher quotes for 5G chips compared to 4G applications.

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Explore the present and forecasted market landscape, with insights into growth opportunities, market drivers, challenges, and constraints for both developed and emerging regions.
Benefit from Porter's Five Forces analysis and Value Chain insights to evaluate various market perspectives and competitive dynamics.
Understand the evolving market scenario, including potential growth opportunities and trends expected in the coming years.

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