Industrial Integrated Circuits Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 73.45 Billion |
| Market Size (2029) | USD 114.85 Billion |
| CAGR (2024 - 2029) | 9.35 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Industrial Integrated Circuits Market Analysis
The Industrial Integrated Circuits Market size is estimated at USD 73.45 billion in 2024, and is expected to reach USD 114.85 billion by 2029, growing at a CAGR of 9.35% during the forecast period (2024-2029).
- Automation is becoming increasingly common in industrial settings, as it can help to improve efficiency and productivity. ICs are essential for many automation systems. Moreover, IoT connects many devices to the internet, and ICs are essential for many IoT devices.
- Integrated circuits are fundamental to the functioning of robots and their controllers, with memory components being particularly vital. Memory chips are crucial for the effective performance of controllers, sensors, and data logging in robotic applications designed for diverse industries.
- In addition, analog and mixed-signal integrated circuits (ICs) play a crucial role in industrial automation and process control. To accommodate the growing needs of industrial developers, manufacturers are launching specialized analog ICs. These components are designed to fulfil various industrial demands, encompassing applications such as factory robotics, sophisticated motor systems, and sensors for monitoring machine conditions.
- The market is experiencing several trends that are impacting its expansion. A notable trend is the movement toward miniaturisation, emphasising the production of more minor and more efficient semiconductor chips. This shift has resulted in the creation of sophisticated manufacturing equipment capable of accommodating reduced chip dimensions and enhanced integration levels.
- Moreover, the developed infrastructure for automation in emerging countries is also attracting players to invest in the market. According to the Federal Statistical Office, in June 2024, Germany experienced a 1.4% rise in industrial production compared to the preceding month, further increasing the country's adoption of automation and control technologies.
- The progression and miniaturisation of integrated circuits have led to increasingly intricate manufacturing processes. This complexity frequently contributes to higher failure rates in the production and testing phases, adversely affecting yields and overall costs. Furthermore, the design of ICs is often dependent on a network of patents and intellectual property rights, which introduces an additional layer of complexity. Organisations must skillfully manage the risks associated with patent infringement and potential legal conflicts, as inadequate handling of these issues can significantly hinder market entry and impede innovation.
- The macroeconomic factors, such as fluctuations in exchange rates and international trade dynamics, might impact the global industrial integrated circuits market. Changes in currency values can affect the cost of imported IC products and raw materials, influencing pricing and profitability for IC manufacturers and distributors. Trade policies, tariffs, and trade agreements can impact the availability and cost of integrated circuits, especially for countries heavily dependent on imports or exports.
Industrial Integrated Circuits Market Trends
Memory Segment is Expected to Register the Fastest Growth in the Market
- Memory integrated circuits (ICs) are specialized electronic components designed primarily for data storage within various electronic devices. These circuits facilitate the processing of codes and provide either temporary or permanent storage solutions for a range of industrial applications, including automation and robotics.
- Memory integrated circuits (ICs) are frequently utilized in industrial control systems, panel PCs, and embedded applications. They are particularly advantageous in industrial machinery control devices that necessitate cost-effective, high-capacity memory solutions.
- This is due to their straightforward architecture, which employs capacitors and field-effect transistors (FETs), allowing for economical production relative to memory capacity. DRAM modules exhibit resilience against vibrations, shocks, dust, and other harsh conditions, ensuring reliable performance even in the most rigorous workloads and diverse operational environments.
- Thus, the rising automation and increasing adoption of robotics across the globe will support the demand for memory IC. According to the data shared by VDMA, Germany's robotics and automation industries generated a turnover of EUR 16.2 billion (USD 17.71 billion) in 2023. This figure is projected to rise to EUR 16.8 billion (USD 18.36 billion) in 2024. As a result, the growing industrial sector is expected to present significant market prospects due to the growing implementation of automation technology.
- Moreover, several players operating in the market are focusing on introducing new memory products to gain a competitive advantage. In April 2024, Micron Technology Inc. announced the launch of its latest innovation - the Micron Serial NOR Flash Memory. The product is designed to enhance performance and reliability for various industrial and consumer electronics applications.
China is Expected to Hold Significant Market Share in the Market
- China is quickly becoming one of the important markets for industrial ICs due to automation and robotics. The country leads the industrial robot market and is one of the major manufacturing countries in Asia-Pacific. The number of companies deploying factory automation, process, and robotics technology in the country is rising, which further represents a huge opportunity for companies offering industrial ICs in China.
- The demand for industrial ICs in China is increasing as the country is home to growing industrial activities and manufacturing growth. For instance, according to the National Bureau of Statistics of China, China's industrial sector accounted for approximately 31.7% of the country's GDP in 2023, making it the primary driving force behind the economy.
- Furthermore, the national strategic initiative referred to as Made in China 2025, launched by the Chinese government, has been instrumental in promoting the development of the integrated circuit industry in the country. The primary objective of this plan is to enhance the semiconductor industry. For instance, in May 2024, China launched its largest semiconductor investment fund to promote the advancement of the domestic chip industry, reflecting the government's persistent efforts to achieve self-sufficiency.
- According to Tianyancha, the third phase of the National Integrated Circuit Industry Investment Fund successfully raised CNY 344 billion (around USD 47.5 billion) from the Central government, state-owned banks, and companies, including the Industrial & Commercial Bank of China Ltd. These efforts are notably enhancing demand within the industrial integrated circuit market.
- China plans to invest over USD 1 billion to enhance its manufacturing sector and domestic technology in an effort to maintain its global competitiveness while providing minimal new assistance for the ailing real estate market. It is evident that industrial support will be Beijing's top priority in the coming year.
- Moreover, as the industrial sector rises, more demand for ICs is expected. US Statistics Division reports that China leads the world in manufacturing, accounting for 28.4% of the total global manufacturing output. This contribution amounts to nearly USD 4 trillion, significantly enhancing the global economy.
Industrial Integrated Circuits Industry Overview
The industrial integrated circuits market is fragmented and consists of various players. The market players adopt various strategies, such as strategic mergers and acquisitions, product innovation, and market expansion, to stay ahead of the competition. Some of the key players include Texas Instruments Inc., Analog Devices Inc., Infineon Technologies AG, STMicroelectronics NV, Microchip Technology Inc., and others. Some of the recent developments in the market include:
- In April 2024, Samsung Electronics Co. Ltd announced the development of the first LPDDR5X DRAM in the industry, which offers an impressive performance of up to 10.7 gigabits per second (Gbps). Utilizing 12 nanometer (nm)-class process technology, Samsung has produced the smallest chip size available among current LPDDR offerings, thereby reinforcing its position as a leader in the low-power DRAM sector.
- In March 2024, STMicroelectronics introduced its latest STM32H7R/S microcontrollers, particularly for next-gen smart devices across various sectors, including factories, buildings, infrastructure, and eHealth. ST has introduced the STM32H7R and STM32H7S microcontrollers, designed explicitly with robust security features, catering to the demands of the Internet of Things (IoT).
Industrial Integrated Circuits Market Leaders
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Texas Instruments Inc
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Analog Devices Inc
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Infineon Technologies AG
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STMicroelectronics N.V.
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Microchip Technology Inc
*Disclaimer: Major Players sorted in no particular order
Industrial Integrated Circuits Market News
- January 2024: NXP Semiconductors introduced the MCX A14x and MCX A15x, marking the inaugural families in the versatile A Series of the MCX portfolio, which are now available for purchase. These new MCX A series microcontrollers are designed to empower engineers by providing a cost-effective, user-friendly solution with a compact footprint. They are optimised with essential features, an innovative power architecture, and software compatibility that meet the demands of various embedded applications, such as industrial sensors, motor control systems, battery management, handheld power system controllers, IoT devices, and more.
- January 2024: Renesas Electronics Corporation launched the RA8T1 microcontroller (MCU) series, which is built on the Arm Cortex-M85 processor architecture. The RA8T1 devices are designed to facilitate real-time control for motors, power supplies, and various products typically utilised in industrial automation, building management, and smart home applications. This group represents the third installment in Renesas' RA8 Series, all providing exceptional performance rated at 6.39 CoreMark/MHz.
Industrial Integrated Circuits Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Market Overview
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4.2 Industry Attractiveness - Porter's Five Forces Analysis
- 4.2.1 Bargaining Power of Suppliers
- 4.2.2 Bargaining Power of Consumers
- 4.2.3 Threat of New Entrants
- 4.2.4 Threat of Substitute Products
- 4.2.5 Intensity of Competitive Rivalry
- 4.3 Industry Value Chain Analysis
- 4.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
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5.1 Market Drivers
- 5.1.1 Increasing Demand for High-efficiency and Energy-conserving Devices in Industrial Automation.
- 5.1.2 The Growing Utilization of Automation and Robotics Within the Industrial Sector Will Support the Market's Growth
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5.2 Market Challenges
- 5.2.1 Complex Fabrication Process Owing to the Decreasing Chip Size
6. MARKET SEGMENTATION
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6.1 By Type
- 6.1.1 Analog IC
- 6.1.2 Logic IC
- 6.1.3 Memory
- 6.1.4 Micro
- 6.1.4.1 Microprocessors (MPU)
- 6.1.4.2 Microcontrollers (MCU)
- 6.1.4.3 Digital Signal Processors
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6.2 By Geography***
- 6.2.1 United States
- 6.2.2 Europe
- 6.2.3 Japan
- 6.2.4 China
- 6.2.5 South Korea
- 6.2.6 Taiwan
- 6.2.7
7. COMPETITIVE LANDSCAPE
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7.1 Company Profiles*
- 7.1.1 Intel Corporation
- 7.1.2 Texas Instruments Inc
- 7.1.3 Analog Devices Inc.
- 7.1.4 Infineon Technologies AG
- 7.1.5 STMicroelectronics NV
- 7.1.6 NXP Semiconductors NV
- 7.1.7 On Semiconductor Corporation
- 7.1.8 Microchip Technology Inc.
- 7.1.9 Renesas Electronics Corporation
- 7.1.10 MediaTek Inc.
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
** Subject To AvailablityIndustrial Integrated Circuits Industry Segmentation
Integrated circuits (ICs) serve as the essential building blocks of electronic devices, consisting of a network of interconnected transistors, resistors, and capacitors. These elements are meticulously constructed on a thin layer of semiconductor material, usually silicon, resulting in a compact chip or wafer.
The study tracks the revenue accrued through the sale of industrial ICs by various players in the global market. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.
The industrial integrated circuits market is segmented by type (analog IC, logic IC, memory, and micro (microprocessors, microcontrollers, and digital signal processors) and by geography (United States, Europe, Japan, China, Korea, Taiwan, and Rest of the World). The market sizes and forecasts are provided in terms of value (USD) for the abovementioned segments.
| By Type | Analog IC | |
| Logic IC | ||
| Memory | ||
| Micro | Microprocessors (MPU) | |
| Microcontrollers (MCU) | ||
| Digital Signal Processors | ||
| By Geography*** | United States | |
| Europe | ||
| Japan | ||
| China | ||
| South Korea | ||
| Taiwan | ||
Industrial Integrated Circuits Market Research FAQs
How big is the Industrial Integrated Circuits Market?
The Industrial Integrated Circuits Market size is expected to reach USD 73.45 billion in 2024 and grow at a CAGR of 9.35% to reach USD 114.85 billion by 2029.
What is the current Industrial Integrated Circuits Market size?
In 2024, the Industrial Integrated Circuits Market size is expected to reach USD 73.45 billion.
Who are the key players in Industrial Integrated Circuits Market?
Texas Instruments Inc, Analog Devices Inc, Infineon Technologies AG, STMicroelectronics N.V. and Microchip Technology Inc are the major companies operating in the Industrial Integrated Circuits Market.
What years does this Industrial Integrated Circuits Market cover, and what was the market size in 2023?
In 2023, the Industrial Integrated Circuits Market size was estimated at USD 66.58 billion. The report covers the Industrial Integrated Circuits Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Industrial Integrated Circuits Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Industrial Integrated Circuits Industry Report
Statistics for the 2024 Industrial Integrated Circuits market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Industrial Integrated Circuits analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
