Integrated Circuits Market Size (2024 - 2029)

The Integrated Circuits market is a pivotal segment of the Information Technology industry, experiencing significant growth and enhanced competency driven by increasing demand. This market is undergoing a transformative phase, with investment volumes rising and market share becoming concentrated among leading companies. Emerging trends such as the Internet of Things, cloud computing, and big data are steering the technology in new directions, supported by regional government initiatives to bolster national industries. The COVID-19 pandemic highlighted supply chain vulnerabilities, contributing to a global IC shortage due to unexpected demand surges.

Market Size of Integrated Circuits Industry

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Integrated Circuits Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 9.20 %
Fastest Growing Market Asia-Pacific
Largest Market Asia-Pacific
Market Concentration Medium

Major Players

Integrated Circuits Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Integrated Circuits Market Analysis

The Integrated Circuits Market is the core of the Information Technology (IT) industry; it is a basic, strategic, and leading industry supporting economic and social development. With market demand, the integrated circuit industry has been experiencing rapid growth and improved general competency in recent years. The integrated circuit design and manufacturing industry have been keeping pace with global development.

  • The Global Integrated Circuits industry is undergoing an important phase of transformation and adjustment. The global market order has been going through an accelerated adjustment period, investment volumes are substantially increasing, and market share is becoming concentrated among dominant companies.
  • New trends such as the Internet of Things (IoT), cloud computing, and big data are progressing rapidly, which is expected to lead integrated circuit technology in new directions.
  • Regional governments are extending their support to develop their national IC industry ecosystem. For instance, China has been aggressively building new fab capacities, accelerated by the introduction of the China Integrated Circuit Investment Fund. According to SEMI China, these investments are paying off, as China's wafer fab capacity market share surged from 9% in 2010 to 17% in 2020.
  • The surge in demand for high-tech products was further accelerated by working from home, lockdown, and a shift to e-commerce. IC market players didn't expect this tremendous demand in the last few years. Building new fabs cost billions of dollars and took years to operational; the unexpected surge caused a global shortage of ICs due to limited manufacturing capacity. The market is expected to normalize not until 2023.
  • The COVID-19 pandemic has impacted multiple sectors of the Integrated Circuits industry. The global supply chain was disrupted owing to transport stoppages, border closures, and general uncertainty leading to challenges in IC production. COVID-19 exposed many vulnerabilities in the supply chain.

Integrated Circuits Industry Segmentation

An Integrated Circuit (IC) is also called a microchip, microelectronic circuit, or chip, an assembly of electronic components fabricated as a single unit. These units are integrated with miniaturized with active devices (e.g., diodes, transistors, etc.) and passive devices (e.g., resistors, capacitors, etc.), and their interconnections are established on a thin substrate of semiconductor material (usually silicon).

The Global Integrated Circuits Market is Segmented by Type (Digital IC, Analog IC, Mixed-Signal IC), Product Type (General-Purpose IC, Application-Specific IC), End-user Industry (Consumer Electronics, Automotive, IT & Telecommunications, Manufacturing, and Automation), and Geography.

By Type
Digital IC
Analog IC
Mixed-Signal IC
By Product Type
General-Purpose IC
Application-Specific IC
By End-User Industry
Consumer Electronics
Automotive
IT & Telecommunications
Manufacturing and Automation
Other End-user Industries (Healthcare, Aerospace & Defense, etc.)
By Geography
North America
Europe
Asia-Pacific
Latin America
Middle-East and Africa
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Integrated Circuits Market Size Summary

The Integrated Circuit Market serves as a fundamental pillar of the Information Technology industry, driving both economic and social progress. Recently, the industry has witnessed significant growth and enhanced capabilities, keeping pace with global advancements. The market is currently undergoing a transformative phase, characterized by increased investment and a shift in market share towards dominant players. Emerging trends such as the Internet of Things, cloud computing, and big data are steering integrated circuit technology in new directions. Regional governments, particularly in China, are actively supporting the development of their national integrated circuit ecosystems, leading to substantial investments in new fabrication capacities. This surge in demand for high-tech products, accelerated by the pandemic and the shift to remote work and e-commerce, has resulted in a global shortage of integrated circuits, highlighting vulnerabilities in the supply chain.

The Asia Pacific region is experiencing robust growth in the Integrated Circuits Market, driven by the increasing demand for smartphones and investments in sectors like renewable energy and electric vehicles. Countries such as China, South Korea, and Japan are seeing a rapid increase in semiconductor consumption due to the transfer of electronic equipment and advancements in IC design. China's market is expected to continue its upward trajectory, fueled by applications in cloud computing, 5G, IoT, AI, and connected vehicles. Other countries, including India, are also making strides to attract investments in semiconductor manufacturing. The market is highly competitive, with players engaging in product innovation, mergers, and acquisitions to expand their presence. Collaborations and strategic acquisitions, such as those by Micross Components and Analog Devices, are further shaping the industry's landscape, enhancing capabilities and market reach.

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Integrated Circuits Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Value Chain Analysis

    3. 1.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Consumers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Intensity of Competitive Rivalry

      5. 1.3.5 Threat of Substitutes

    4. 1.4 COVID-19 Impact on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Digital IC

      2. 2.1.2 Analog IC

      3. 2.1.3 Mixed-Signal IC

    2. 2.2 By Product Type

      1. 2.2.1 General-Purpose IC

      2. 2.2.2 Application-Specific IC

    3. 2.3 By End-User Industry

      1. 2.3.1 Consumer Electronics

      2. 2.3.2 Automotive

      3. 2.3.3 IT & Telecommunications

      4. 2.3.4 Manufacturing and Automation

      5. 2.3.5 Other End-user Industries (Healthcare, Aerospace & Defense, etc.)

    4. 2.4 By Geography

      1. 2.4.1 North America

      2. 2.4.2 Europe

      3. 2.4.3 Asia-Pacific

      4. 2.4.4 Latin America

      5. 2.4.5 Middle-East and Africa

Integrated Circuits Market Size FAQs

The Integrated Circuits Market is projected to register a CAGR of 9.20% during the forecast period (2024-2029)

Texas Instruments, Inc., Analog Devices, Inc., Infineon Technologies AG, STMicroelectronics N.V. and NXP Semiconductors N.V. are the major companies operating in the Integrated Circuits Market.

Integrated Circuit Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)