Power Management Integrated Circuit Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The power Management Integrated Circuit market is expected to register a CAGR of around 4.85% during the forecast period (2021 - 2026).

Since the outbreak of COVID-19, the integrated circuits manufacturing industry is hit severely with major influence on its supply chain and production facilities as the production came to stand still in China and Taiwan during February and March, which influenced the production of various OEMs across the globe. However, a significant share of major vendors stocked up on electronics due to the Chinese new year, which helped mitigate the risk. ​ Nevertheless, this had hampered the market for power management ICs.

Key Highlights

• Globally, the significant rise in the consumption and cost of energy has forced consumers to save energy and devise methods to minimize environmental impacts caused by carbon emissions. This has increased the demand for power-saving electronic products in the market, such as power IC’s. In addition, the rapid growth in smart homes and smart grid technology, the increasing processing power in computing and mobile devices, and the increased adoption of smartphones and tablets are also aiding the market to grow significantly over the forecast period.
• The increasing processing power in several electronic devices has generated the need for acute power management. This has propelled the major electronics manufacturers to produce specific, sophisticated power management chipsets with specialized power management ICs designed for specific consumer needs.
• However, the cyclical nature of the semiconductor industry and the reduction in the size of printed circuit boards are expected to hinder market growth. For instance, The shift toward 300-mm wafers from 200-mm wafers and the introduction of 450- mm wafers is expected to increase the production of chips per wafer. This is likely to result in low ASP of power management ICs, increasing their adoption across all application sectors.
• Furthermore, Most of the electricity requirements around the world are fulfilled using limited fossil fuels. The non-renewable nature of fossil fuels is a major concern for governments globally. This has led to an increased demand for dedicated power management IC’s.
• Companies in the region are introducing new products to gain a competitive edge and are also involved in strategic mergers and acquisitions. For instance, Spansion Inc. launched the first power management IC in the automotive segment for advanced driver assistance systems (ADAS).

Key Market Trends

Communications Sector to Witness Significant Growth

• The advancement of wireless communication and its devices and equipment is a significant factor driving the PMIC market in the communication sector. The growing demand for wired and wireless connections and their increasing industrial applications also fuel advancement in infrastructure, hence developing space for PMICs.
• Carrier Ethernet switches and routers, communication battery chargers, enterprise Ethernet switches, and routers, enterprise networks, and Low-tier Consumer/SOHO Routers are some of the primary scopes considered for the market studied.
• In December 2020, Qorvo has introduced a new multi-time programmable family of power management ICs (PMICs) optimized for high-performance and compact form-factor designs. The Qorvo ACT88327/8/9/1 Constant-On-Time (COT) PMIC family accelerates time to market by delivering design flexibility for multiple applications, from SSD cards, security cameras, and routers low-power mobile uses (LPDDR5), home control, and voice-assisted devices.
• Increased use of next-generation mobile networks, such as 4G and 5G, is expected to fuel market growth. Also, with the rollout of the 5G market, new devices need to be installed, which is expected to expand the market's scope further.
• For instance, in February 2021, Avnet has launched its new embedded universal integrated circuit card product for open cellular connectivity. The AVeUICC32xxBICS comes with a scalable BICS multi-IMSI profile giving access to 4G / LTE-M / NB-IoT and legacy 2G and 3G connectivity in 200+ countries and across 700+ mobile networks worldwide. The AVeUICC32xxBICS is bundled with pre-paid BICS connectivity and access to BICS’ SIM For Things powerful connectivity management platform.
• Further, the growing number of small cells and the increasing use of satellite communication may also generate the demand for PMICs. The small cell network market is estimated to register a CAGR of 26.82% to reach a market value of USD 10.96 billion by 2026.

North America Accounts For Largest Market Share

• North America is one of the largest consumers of consumer electronics in the world. Electronic gadgets see a high adoption rate in the region. The United States being one of the technologically advanced nations in the world, the population of the country buys consumer electronics on a regular basis.
• Smartphones, tablets, portable speakers, and AI-assisted electronics are experiencing high growth in the region. This is influencing the growth of the power management ICs in the region. According to the Consumer Technology Association (CTA), over 80% of the households in the United States have smartphones, and over 96% of the households have at least one television installed.
• According to Cisco Systems, the wearable market is promising in the United States, as the number of connected wearable devices in North America is expected to grow to over 439 million in 2022. North America is forecast to be the region with the most 5G connections made using wearable devices in 2022. The 439 million North America connections would be 222 million more than those made to 4G networks in 2017.
• Canada is also one of the largest producer of consumer electronics in the world. It is estimated that as of 2016, more than 2,000 companies in Canada were engaged in electronics, computers and related manufacturing. According to Canadian Manufacturers and Exporters data, electronics and related manufacturing represent about 4% of Canada’s total manufacturing output.
• Further, in August 2020, Texas Instruments (TI) has announced that it has acquired Integrated Circuit Designs, Inc. (ICD). This privately-held company specializes in the design of radio-frequency (RF) power integrated circuits (ICs). Combining ICD's design expertise with TI's extensive high-performance analog and low-power microcontroller product portfolio will enhance TI's ability to provide low-power RF integrated circuits solutions for industrial, commercial, and consumer applications.

Competitive Landscape

The power management integrated circuit market is highly competitive and consists of several major players. However, in terms of market share, few of the major players currently dominate the market. Major players in the market include Texas Instruments Inc., ON Semiconductor Corporation, Analog Devices Inc., Dialog Semiconductor Plc., etc. are introducing new products, partnerships, and acquisitions, to increase their market share.

• June 2021 - Maxim Integrated Products Inc. has expanded its MAXSafe Technology line with the release of MAX22530, an isolated, field-side self-powered 12-bit system monitor. Featuring four channels, the MAX22530 provides isolated system monitoring to improve accuracy 50x and to reduce solution size by 40% by integrating five components into a single power management integrated circuit.
• December 2020 - MagnaChip Semiconductor Corporation announced a new portfolio power management integrated circuit (PMIC) through its first UHD display panel PMIC for laptops. The new PMICs are integrated circuits that include multiple power management functions within a single chip. They are commonly used to power space-constrained devices where high-efficient and compact form factors are required. The company had launched these products to focus on the growing need for battery-operated devices since the battery life depends on the efficiency of the PMIC's power management capabilities.

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• The market estimate (ME) sheet in Excel format
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