System in Package Technology Market Size (2024 - 2029)

The system in package technology market is poised for growth, driven by the increasing digitalization across various sectors and advancements in technologies such as 5G and the Internet of Things. The market's expansion is further supported by the rising investment in electronic devices, which demand higher integration and performance. Despite challenges like thermal issues from high integration levels, the demand for compact and durable electronic components in smart gadgets presents significant opportunities for market growth.

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Market Size of System in Package Technology Industry

System in Package Technology Market Forecast
Study Period 2019 - 2029
Base Year For Estimation 2023
CAGR 8.00 %
Fastest Growing Market Asia Pacific
Largest Market North America
Market Concentration Medium

Major Players

System in Package Technology Market Key Players

*Disclaimer: Major Players sorted in no particular order

System In Package Technology Market Analysis

The system in package technology market is expected to register a CAGR of 8% over the forecast period 2021 - 2026. Increasing adoption of digitalization by many businesses, technological advancement of 5G, Internet of Things (IoT) and rapid development of smart robots across the world, and rising investment on electronic devices such as smartphones, televisions, global positioning systems, bluetooth, computers, drones, microphones, etc will boost the market demand in the future

  • As system in package technology maximizes system performance due to higher integration and eliminates re-packaging with shorter development cycles at reduced costs has increased its adoption in most advanced consumer electronic devices. According to the 2020 Consumer Technology Association report, the United States consumer technology industry is expected to a record USD 422 billion in retail revenues in 2020 with nearly 4% growth over last year due to increased popularity of streaming services and wireless earbuds along with 5G connectivity and artificial intelligence (AI) enabled devices.
  • Increased utilization of drones, Unmanned Aerial Vehicles (UAVs) in military, commercial, scientific, and consumer markets due to reduction in manufacturing costs, and open source software frameworks for security purposes is thriving the market. As per Federal Aviation and Administration, there are total of 1,563,263 registered drones out of that 441,709 are commercial drones and 1,117,900 are recreational drones as of March 2020.
  • Higher level of integration leads to thermal issues that can compromise the efficiency of devices and would hinder the growth of the market. However, increased demand for compact size and enhanced durability of electronic component in smart gadgets are expected to provide lucrative opportunities to the market.

System In Package Technology Industry Segmentation

System in package (SIP) technology utilizes a functional package that integrates multiple functional chips to develop solutions that can be customized as per the user requirement. It accepts many types of bare chips and modules for arrangement and assembly as they can be structured in either a planar arrangement (2D) or in a stacked arrangement (3D) depending upon the number of modules to be used in confined space.

Package
Flat Packages
Pin Grid Arrays
Surface Mount
Small Outline
Package Technology
2D IC
3D IC
5D IC
Packaging Method
Wire Bond
Flip Chip
Fan-Out Wafer Leve
Device
Power Management Integrated Circuit (PMIC)
Microelectromechanical Systems (MEMS)
RF Front-End
RF Power Amplifier
Application Processor
Baseband Processor
Others
Application
Consumer Electronics
Telecommunications
Industrial Systems
Automotive and Transportation
Aerospace and Defense
Healthcare
Other Applications
Geography
North America
Europe
Asia-Pacific
Latin America
Middle East and Africa
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System in Package Technology Market Size Summary

The system in package (SiP) technology market is poised for significant growth, driven by the increasing digitalization across various sectors and advancements in technologies such as 5G, IoT, and smart robotics. The demand for SiP technology is bolstered by its ability to enhance system performance through higher integration, reducing costs and development cycles, which is particularly beneficial for advanced consumer electronics. The automotive sector, especially with the rise of electric vehicles, is also a key area of growth, as SiP technology is integrated into electric components to support the industry's shift towards cleaner and more efficient solutions. Despite challenges like thermal issues due to high integration levels, the market is expected to benefit from the growing need for compact and durable electronic components in smart gadgets.

North America is anticipated to be a major growth region for SiP technology, fueled by the rapid expansion of 5G networks and the increasing adoption of connected devices and robotics. The medical sector in the United States is also contributing to market growth, with a rising demand for microelectromechanical systems (MEMS) in various medical applications. The competitive landscape of the SiP technology market is dominated by major players such as Amkor Technology Inc., ASE Group, and Samsung Electronics, who are expanding their global presence through strategic collaborations. Meanwhile, smaller companies are gaining traction by securing new contracts and entering new markets, driven by technological advancements and product innovations.

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System in Package Technology Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Overview

    2. 1.2 Market Drivers

      1. 1.2.1 Growing demand for miniaturization of electronic devices

      2. 1.2.2 Rapid Technological Advances Led to Cost Reduction

    3. 1.3 Market Restraints

      1. 1.3.1 Thermal Issues Due to Higher level of Integration

    4. 1.4 Value Chain Analysis

    5. 1.5 Porter's Five Force Analysis

      1. 1.5.1 Threat of New Entrants

      2. 1.5.2 Bargaining Power of Buyers/Consumers

      3. 1.5.3 Bargaining Power of Suppliers

      4. 1.5.4 Threat of Substitute Products

      5. 1.5.5 Intensity of Competitive Rivalry

    6. 1.6 Assessment of COVID-19 Impact on the Industry

  2. 2. MARKET SEGMENTATION

    1. 2.1 Package

      1. 2.1.1 Flat Packages

      2. 2.1.2 Pin Grid Arrays

      3. 2.1.3 Surface Mount

      4. 2.1.4 Small Outline

    2. 2.2 Package Technology

      1. 2.2.1 2D IC

      2. 2.2.2 3D IC

      3. 2.2.3 5D IC

    3. 2.3 Packaging Method

      1. 2.3.1 Wire Bond

      2. 2.3.2 Flip Chip

      3. 2.3.3 Fan-Out Wafer Leve

    4. 2.4 Device

      1. 2.4.1 Power Management Integrated Circuit (PMIC)

      2. 2.4.2 Microelectromechanical Systems (MEMS)

      3. 2.4.3 RF Front-End

      4. 2.4.4 RF Power Amplifier

      5. 2.4.5 Application Processor

      6. 2.4.6 Baseband Processor

      7. 2.4.7 Others

    5. 2.5 Application

      1. 2.5.1 Consumer Electronics

      2. 2.5.2 Telecommunications

      3. 2.5.3 Industrial Systems

      4. 2.5.4 Automotive and Transportation

      5. 2.5.5 Aerospace and Defense

      6. 2.5.6 Healthcare

      7. 2.5.7 Other Applications

    6. 2.6 Geography

      1. 2.6.1 North America

      2. 2.6.2 Europe

      3. 2.6.3 Asia-Pacific

      4. 2.6.4 Latin America

      5. 2.6.5 Middle East and Africa

System in Package Technology Market Size FAQs

The System in Package Technology Market is projected to register a CAGR of 8% during the forecast period (2024-2029)

Samsung Electronics Co., Ltd., ASE Group, Amkor Technology Inc., Toshiba Corporation, Qualcomm Incorporated and ChipMOS Technologies Inc are the major companies operating in the System in Package Technology Market.

System in Package Technology Report Snapshots

System in Package Technology Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)