Advanced Packaging Technologies Global Market Report 2024

The advanced packaging technologies market size has grown rapidly in recent years. It will grow from $6.46 billion in 2023 to $7.3 billion in 2024 at a compound annual growth rate (CAGR) of 12.9%. The growth observed in the historical period can be attributed to the expansion of consumer electronics, the rise of mobile computing, efforts in enhanced thermal management, the development of automotive electronics, and increasing considerations for environmental impact.

The advanced packaging technologies market size is expected to see rapid growth in the next few years. It will grow to $12.33 billion in 2028 at a compound annual growth rate (CAGR) of 14.0%. The anticipated growth in the forecast period can be attributed to factors such as heterogeneous integration, the development of quantum computing, advancements in flexible and stretchable electronics, a focus on supply chain resilience, and the implementation of smart manufacturing practices. Key trends expected in the forecast period encompass the adoption of advanced interconnect technologies, the utilization of fan-out wafer-level packaging, the integration of system-in-package (SiP) approaches, the implementation of thermal management solutions, and the use of embedded die packaging for IoT devices.

The anticipated surge in demand for consumer electronics is poised to act as a significant driver for the growth of the advanced packaging market in the future. Consumer electronics encompass a wide range of electronic equipment, gadgets, and devices designed for regular non-commercial or professional use by individuals. The increasing demand for consumer electronics has a direct impact on the need for advanced packaging, as it plays a crucial role in defining the sophistication and protection of these products. As an illustration, in June 2021, Oberlo, a Lithuania-based e-commerce platform, reported a global usage of smartphones by 6.4 billion people. This staggering statistic underscores the pervasive nature of consumer electronics and highlights the consequential role it plays in propelling the growth of the advanced packaging market.

The anticipated proliferation of data centers is expected to drive the growth of the advanced packaging technologies market in the coming years. A data center serves as a centralized facility equipped with computing and telecommunications resources, catering to the storage, processing, management, and distribution of vast amounts of data. Advanced packaging technologies play a crucial role in enhancing the efficiency of data centers by facilitating higher integration density, improved thermal management, and enhanced performance of semiconductor components. These advancements contribute significantly to the scalability and overall performance of data processing systems. As an example, in August 2021, Savills Korea, a Korea-based firm, reported that the total capacity of data centers reached 430 MW in terms of IT load by the end of 2020. The projection of a 700 MW increase in total commercial data center IT load in Korea during 2021–2023, representing 15% of the total Asia-Pacific (APAC) capacity, underscores the substantial growth and impact of data centers on the advanced packaging technologies market.

The advancing landscape of technology is significantly shaping the advanced packaging technologies market. Major players within the advanced packaging technologies sector are strategically directing their efforts towards developing technological solutions, aiming to strengthen their leadership in the semiconductor solutions domain. As an illustration, in May 2021, Samsung Electronics, a South Korea-based electronics company, introduced the Interposer-Cube4 (I-Cube4), an advanced chip packaging technology tailored for high-performance applications. The I-Cube4, a 2.5D packaging technology, enhances communication and power efficiency between logic and memory chips. It is anticipated to find widespread applications in sectors such as high-performance computing, artificial intelligence (AI), 5G, cloud computing, and large-scale data centers. This strategic move exemplifies the commitment of major companies to driving innovation and technological advancements within the advanced packaging technologies market, positioning themselves at the forefront of semiconductor solutions.

Major companies within the advanced packaging technologies market are increasingly prioritizing the introduction of high-performance glass substrates as a strategic move to gain a competitive edge. Glass substrates refer to flat, rigid sheets or panels made of glass that function as a foundational base for various electronic devices, displays, sensors, or technologies requiring a smooth and transparent surface. In a notable example, in June 2023, Intel Corporation, a prominent US-based technology company, unveiled glass substrates designed for advanced packaging, aiming to secure several advantages. These glass substrates exhibit the capability to withstand higher temperatures, present a 50% reduction in pattern distortion, and possess ultra-low flatness for improved depth of focus. When compared to organic substrates, glass offers superior properties, including ultra-low flatness and enhanced thermal and mechanical characteristics, resulting in a significantly higher interconnect density within a substrate. This strategic focus on high-performance glass substrates highlights the companies' commitment to innovation and gaining a competitive advantage in the advanced packaging technologies market.

In November 2022, Lam Research Corporation, a semiconductor company headquartered in the US, completed the acquisition of Semsysco GmbH for an undisclosed sum. This acquisition is poised to facilitate Lam Research Corporation's expansion of its advanced packaging capabilities, with a specific focus on enhancing solutions for cutting-edge logic chips and chipset-based offerings tailored for high-performance computing (HPC), artificial intelligence (AI), and various data-intensive applications. Semsysco GmbH, based in Austria, specializes in manufacturing advanced plastic packaging products, adding complementary expertise to Lam Research's portfolio in this domain.

Major companies operating in the advanced packaging technologies market report are Samsung Electronics, Taiwan Semiconductor Manufacturing Company, Intel Corporation, International Business Machines, Qualcomm Technologies, Advanced Semiconductor Engineering (ASE), ASE Technology Holding Co. Ltd., Texas Instruments, Shin-Etsu Chemical Co. Ltd., Renesas Electronics Corporation, GlobalFoundries Inc., Sanmina Corporation, Amkor Technology, Jiangsu Changjiang Electronics Technology, STATS ChipPAC, Tongfu Microelectronics, Powertech Technology, ChipMOS Technologies Inc., United Test and Assembly Center Holdings Ltd., Unisem (M) Berhad., Greatek Electronics, Nepes Corporation, SFA Semicon, SÜSS Microtec, China WLCSP Co. LTD., Universal Instruments Corporation, Brewer Science, Chipbond Technology Corporation, Deca Technologies, Siliconware Precision Industries, Silicon Mobility SAS., Lam Research Corporation, Toshiba Electronic Devices & Storage Corporation, King Yuan Electronics Co. Ltd., Semiconductor Manufacturing International Corporation, Chip One Stop Inc., Jiangsu Changjiang Electronics Technology Co. Ltd., Hana Micron Inc., IBIDEN Engineering CO. LTD., Aehr Test Systems.

Asia-Pacific was the largest region in global advanced packaging technologies market in 2023. The regions covered in the advanced packaging technologies market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the advanced packaging technologies market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary types of advanced packaging technologies comprise 3D integrated circuits, 2D integrated circuits, 2.5D integrated circuits, and other related methods. 3D integrated circuits, in particular, offer attributes such as high bandwidth, compact form factors, and comprehensive multi-function integration within packaging. Three-Dimensional Integrated Circuit (3DIC) technology involves vertically stacking homogeneous or heterogeneous dies into Multi-Chip Modules (MCM) utilizing Through-Silicon-Via (TSV) connections. These advancements enable enhanced performance and efficiency. Various product categories arising from these technologies include active packaging, smart and intelligent packaging, and they find applications across multiple industries such as automotive and transport, consumer electronics, industrial sectors, IT and telecommunications, and other diverse verticals.

The advanced packaging technologies market research report is one of a series of new reports that provides advanced packaging technologies market statistics, including advanced packaging technologies industry global market size, regional shares, competitors with a advanced packaging technologies market share, detailed advanced packaging technologies market segments, market trends and opportunities, and any further data you may need to thrive in the advanced packaging technologies industry. This advanced packaging technologies market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The advanced packaging technologies market consists of revenues earned by entities by providing packaging services such as fan-out wafer-level packaging and system-in-package used during the process. The market value includes the value of related goods sold by the service provider or included within the service offering. The advanced packaging technologies market also includes sales of image sensor, microelectronics, complementary metal oxide semiconductor, light-emitting diode, design package, external cavity, ultraviolet light, and others which are used in providing packaging services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.