United States Integrated Circuits Market Size

United States Integrated Circuits Market Analysis

The United States Integrated Circuits Market size is estimated at USD 134.44 billion in 2024, and is expected to reach USD 214.21 billion by 2029, growing at a CAGR of 9.77% during the forecast period (2024-2029).

• The integrated circuits market in the United States is witnessing significant growth, driven by a combination of technological advancements, market demands, and economic factors. The rising demand for consumer electronics like smartphones, tablets, laptops, and smart home devices is a major factor driving the demand for integrated circuits. As these devices become more sophisticated, they require advanced ICs to support enhanced functionalities, connectivity, and performance. Continuous innovation in consumer electronics fuels the need for more powerful and efficient integrated circuits.
• In addition, the automotive industry is undergoing a transformation with the rise of electric vehicles. EVs rely heavily on integrated circuits for various applications, including battery management systems, power electronics, and advanced driver assistance systems. As the US government and consumers increasingly prioritize sustainability and energy efficiency, the demand for ICs in the automotive sector is expected to grow significantly.
• According to estimates from Kelley Blue Book, a Cox Automotive company, a record-breaking 1.2 million US vehicle buyers opted for electric vehicles (EVs) last year. Specifically, 1,189,051 new EVs were serviced as the gradual transition toward an electrified future persisted. In 2023, the EV share of the total US vehicle market stood at 7.6%, based on Kelley Blue Book estimates, marking an increase from 5.9% in 2022. This substantial growth in EV adoption within the region is poised to significantly bolster the overall EV ecosystem.
• ICs are expected to perform a wide range of complex functions. The demand for more state-of-the-art features and capabilities in electronic devices grows as technology advances. Designers need to incorporate complex circuits and algorithms to meet these requirements. This increased functionality leads to larger and more intricate designs, making it challenging to manage and optimize the complex interactions between different components.
• Geopolitical challenges, including the Russian invasion of Ukraine, China-US competition, elections, and the war in Israel, significantly impact the global supply chain, especially critical raw materials vital for traditional industries, defense, high-tech sectors, aerospace, and green energy. The Russia-Ukraine war and economic slowdown caused significant disruption in the semiconductor industry. The increased inflation and interest rates reduced consumer spending, hampered the industry’s demand, and led to slow growth in the integrated circuit market.