Analog Integrated Circuit (IC) Market Size (2024 - 2029)

The analog integrated circuit market is poised for growth, driven by the increasing adoption of emerging technologies such as the Internet of Things and the rising demand for advanced consumer electronics and electric vehicles. Despite potential short-term setbacks due to declining smartphone demand and geopolitical tensions affecting supply chains, the market is expected to recover as 5G connectivity expands. However, the industry's growth is challenged by a shortage of skilled engineers and volatile raw material prices, which are exacerbated by global conflicts and supply chain disruptions.

Market Size of Analog Integrated Circuit (IC) Industry

Analog Integrated Circuit (IC) Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 91.26 Billion
Market Size (2029) USD 129.69 Billion
CAGR (2024 - 2029) 7.28 %
Fastest Growing Market Asia Pacific
Largest Market Asia Pacific

Major Players

Analog Integrated Circuit (IC) Market Major Players

*Disclaimer: Major Players sorted in no particular order

Analog Integrated Circuit (IC) Market Analysis

The Global Analog Integrated Circuit Market size is estimated at USD 91.26 billion in 2024, and is expected to reach USD 129.69 billion by 2029, growing at a CAGR of 7.28% during the forecast period (2024-2029).

  • An analog integrated circuit (IC) is a network of interconnected components manufactured on a single wafer of semiconducting material. These components operate across a continuous range of input signals, contrasting with their digital counterparts, which utilize only two input and output voltage levels. These circuits process, receive, and generate multiple energy output levels during device operation. Electronic devices employing components such as oscillators, DC amplifiers, multi-vibrators, and audio amplifiers utilize analog circuits, which maintain equal output and input levels.
  • The introduction and adoption of emerging technologies such as the Internet of Things (IoT) are expected to propel the market growth owing to the evident benefits of analog ICs across a considerable range of real-time connected devices and applications. Owing to the increasing availability of high-speed connectivity, rising cloud adoption, and increasing use of data processing and analytics, the adoption of the Internet of Things (IoT) is growing steadily. For instance, as per Ericsson, there were 1.9 billion cellular IoT connections in the world in 2022, which is expected to grow to 5.5 billion in 2027, registering a CAGR of 19% over the period.
  • Furthermore, the adoption of analog ICs has surged in recent years due to the proliferation of smartphones, consumer electronics, computers, and storage devices, as well as the increased sales of electric vehicles. Various ICs used in smartphones include charge ICs, display PMICs, SoC PMICs, and Camera PMICs. Key players such as Apple, Qualcomm, Intel, and Samsung S.LSI dominate this market. Consequently, with the growing production and sales of smartphones featuring advanced technologies and the increasing integration of 5G and 6G, the analog IC market is anticipated to gain substantial traction globally.
  • However, global smartphone demand is projected to decline in 2023 compared to 2022 due to ongoing inflation, reduced consumer spending, and a weaker consumer outlook. This decline is expected to temporarily hamper the Analog IC market. Nevertheless, the market is predicted to recover slightly in FY 2024 owing to heightened demand for 5G smartphones and the expanding 5G network connectivity worldwide, particularly driven by the increased proliferation of 5G and foldable smartphones. For instance, as per GSMA, by 2025, 5G networks will likely cover one-third of the world's population.
  • There is a significant dependency on the availability of skilled analog chip design engineers in the industry. However, there is a need for such skills within the semiconductor industry. According to Cindi Harper, Human Resources, Talent Planning, and Acquisition at Intel, the demand for talent in the industry surpasses the supply. Similarly, Ruchir Dixit, country manager at Siemens EDA, has stated that the US expects a shortage of 250,000 semiconductor engineers over the next five years. China and Taiwan anticipate shortages of 300,000 and 50,000 engineers, respectively. Such trends hinder the market's growth.
  • Moreover, the conflict between Russia and Ukraine is expected to significantly impact several industries like the electronics industry. The conflict has already exacerbated the semiconductor supply chain issues and the chip shortage that have impacted the industry for some time. The disruption caused volatile pricing for critical raw materials like nickel, palladium, copper, silicon, Germanium, Indium Gallium Arsenide Phosphide, titanium, aluminum, and iron ore, resulting in material shortages. 
  • Further, according to SEMI, Russia is a global supplier of 45-50% of palladium. The material is used to form bonding wires, lead frames, electrodes, plating, and coating for semiconductor packaging. Therefore, with every country shutting doors for trading with Russia, the semiconductor manufacturers’ focus is increasing on alternative raw material supplies, further delaying the production of semiconductors required in the market.

Analog Integrated Circuit (IC) Industry Segmentation

An analog integrated circuit is dedicated to designing and applying analog, radio frequency (rf), mixed-signal integrated circuits (ICS), and signal processing circuits and systems. The market is growing, as every digital consumer product, from appliances and cell phones to music players, has analog ICS feeding its digital heart, including other applications, such as automotive, military, and government. The analog integrated circuit market is segmented type (general-purpose IC [interface, power management, signal conversion, amplifiers/comparators], application-specific IC (consumer [audio/video, digital still camera & camcorder, and other consumers), automotive [infotainment and other infotainment], communication [cell phone, infrastructure, wired communication, short range, other wireless], computer [computer system and display, computer periphery, storage, and other computers], industrial and others), geography (Americas, Europe, Japan, China, and rest of the world). The impact of macroeconomic trends on the market is also covered under the scope of the study. Furthermore, the disturbance of the factors affecting the market's evolution in the near future has been covered in the study regarding drivers and constraints. The report offers market forecasts and size in volume (units) and value (USD) for all the above segments.

By Type
General-Purpose IC
Interface
Power Management
Signal Conversion
Amplifiers/Comparators (Signal Conditioning)
Application-Specific IC
Consumer
Audio/Video
Digital Still Camera and Camcorder
Other Consumers
Automotive
Infotainment
Other Infotainment
Communication
Cell Phone
Infrastructure
Wired Communication
Short Range
Other Wireless
Computer
Computer System and Display
Computer Periphery
Storage
Other Computers
Industrial and Others
By Geography
Americas
Europe
Japan
China
Australia and New Zealand
Latin America
Middle East and Africa
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Analog Integrated Circuit (IC) Market Size Summary

The Analog Integrated Circuit (IC) Market is poised for significant growth, driven by the increasing adoption of emerging technologies such as the Internet of Things (IoT) and the proliferation of smartphones and consumer electronics. Analog ICs, which operate across a continuous range of input signals, are integral to various electronic devices, including oscillators, amplifiers, and audio devices. The market is expected to expand as IoT connectivity, cloud adoption, and data processing capabilities continue to rise. However, challenges such as a temporary decline in global smartphone demand due to economic factors and a shortage of skilled engineers in the semiconductor industry may impact growth. Additionally, geopolitical tensions, like the Russia-Ukraine conflict, have exacerbated supply chain issues, affecting the availability and pricing of critical raw materials used in semiconductor manufacturing.

China is anticipated to play a pivotal role in the analog IC market, supported by its robust semiconductor manufacturing capabilities, rapid industrialization, and expansive consumer electronics market. The country's advancements in 5G technology and infrastructure, along with its thriving IT and data center industry, are expected to drive demand for analog ICs. The increasing penetration of 5G smartphones and the automotive industry's growth further contribute to this demand. The market landscape is semi-consolidated, with key players like Analog Devices Inc., Infineon Technologies AG, and Microchip Technology Inc. investing in product innovation and strategic partnerships to maintain competitiveness. Recent developments, such as the introduction of advanced 5G solutions and radiation-tolerant technology, highlight the industry's focus on technological differentiation and market leadership.

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Analog Integrated Circuit (IC) Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.2.1 Threat of New Entrants

      2. 1.2.2 Bargaining Power of Consumers

      3. 1.2.3 Bargaining Power of Suppliers

      4. 1.2.4 Threat of Substitutes

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Supply Chain Analysis

    4. 1.4 Impact of Macroeconomic Factors and COVID-19

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 General-Purpose IC

        1. 2.1.1.1 Interface

        2. 2.1.1.2 Power Management

        3. 2.1.1.3 Signal Conversion

        4. 2.1.1.4 Amplifiers/Comparators (Signal Conditioning)

      2. 2.1.2 Application-Specific IC

        1. 2.1.2.1 Consumer

          1. 2.1.2.1.1 Audio/Video

          2. 2.1.2.1.2 Digital Still Camera and Camcorder

          3. 2.1.2.1.3 Other Consumers

        2. 2.1.2.2 Automotive

          1. 2.1.2.2.1 Infotainment

          2. 2.1.2.2.2 Other Infotainment

        3. 2.1.2.3 Communication

          1. 2.1.2.3.1 Cell Phone

          2. 2.1.2.3.2 Infrastructure

          3. 2.1.2.3.3 Wired Communication

          4. 2.1.2.3.4 Short Range

          5. 2.1.2.3.5 Other Wireless

        4. 2.1.2.4 Computer

          1. 2.1.2.4.1 Computer System and Display

          2. 2.1.2.4.2 Computer Periphery

          3. 2.1.2.4.3 Storage

          4. 2.1.2.4.4 Other Computers

        5. 2.1.2.5 Industrial and Others

    2. 2.2 By Geography

      1. 2.2.1 Americas

      2. 2.2.2 Europe

      3. 2.2.3 Japan

      4. 2.2.4 China

      5. 2.2.5 Australia and New Zealand

      6. 2.2.6 Latin America

      7. 2.2.7 Middle East and Africa

Analog Integrated Circuit (IC) Market Size FAQs

The Analog Integrated Circuit Market size is expected to reach USD 91.26 billion in 2024 and grow at a CAGR of 7.28% to reach USD 129.69 billion by 2029.

In 2024, the Analog Integrated Circuit Market size is expected to reach USD 91.26 billion.

Analog IC Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)