Programmable ASIC Market Size (2024 - 2029)

Programmable Application Specific Integrated Circuit (ASIC) Market Analysis

The Programmable ASIC Market size is estimated at USD 18.5 billion in 2024, and is expected to reach USD 28.88 billion by 2029, growing at a CAGR of 9.32% during the forecast period (2024-2029).

The rapidly rising demand for smartphones, tablets, and other mobile devices across the globe is positively impacting the programmable ASIC demand in the consumer electronics segment.

• The increased pace of new product development, declining cost per function of ICs, and their increasing functionality, and shortened product replacement cycles are some of the factors that are positively influencing the growth of the market.
• The growing demand for various telecommunications applications such as system-on-chip (SoC) applications is expected to boost the revenue of the market in the coming years. Additionally, the growing use of application-specific integrated circuits in consumer electronics and various industrial and automotive applications is further expected to drive the market forward.
• Another factor driving the market is the emergence of IoT devices. These circuits are also used in applications such as environmental monitoring, automotive emission control, and personal digital assistants among others. As the application-specific integrated circuits are capable of integrating both analog and logic functions, hence they enable the formation of a complete mechanism on a single chip, which is expected to boost the growth of the market.
• One of the major restraints in the Programmable ASIC market is the high design cost associated with it. The design and development process requires a significant investment in terms of resources and time, which may be prohibitive for small and medium-sized enterprises. For instance, Apple's A14 Bionic chip, which was designed on a 5nm process, is estimated to have cost around $400 million in design and development.
• The use of third-party intellectual property (IP) in Programmable ASIC design can lead to licensing issues and legal disputes. For instance, in 2020, Nvidia and Arm Holdings were involved in a legal dispute over the use of Arm's IP in Nvidia's products. This dispute could potentially impact the development and availability of Nvidia's products in the future.
• The COVID-19 pandemic led to significant disruptions in the global supply chain, which impacted the production and delivery of Programmable ASICs. The pandemic led to delays in product launches, which impacted the revenue of companies in the Programmable ASIC market. For instance, Xilinx faced delays in the release of its Versal ACAP product line in 2020 due to the pandemic, which impacted its revenue in the fiscal year 2021.
• Governments across the world provided support to the semiconductor industry to mitigate the impact of the pandemic. For instance, as per Economic times, in the United States, the government provided USD 52 billion in funding to support the semiconductor industry in 2021 as part of the CHIPS for America Act. This funding is expected to support the development and production of Programmable ASICs in the country. There has also been an impact of the Russia-Ukraine war on the overall packaging ecosystem.

Programmable Application Specific Integrated Circuit (ASIC) Industry Segmentation

An application-specific integrated circuit (ASIC) is specially built for a specific application or purpose. Compared to a logic device or a standard logic integrated circuit, an ASIC provides better speed because it is specifically designed for a specific application. It is also made smaller, and it uses less electricity.

The Programmable Application Specific Integrated Circuit (ASIC) Market is segmented by end-user (consumer electronics, automotive, telecommunications) and geography (North America [United States, Canada], Europe [United Kingdom, Germany, France, Rest of Europe], Asia Pacific [China, Japan, India, Rest of Asia Pacific], rest of the World). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.