Integrated Circuits Global Market Report 2024

The integrated circuits market size has grown strongly in recent years. It will grow from $439.68 billion in 2023 to $480.97 billion in 2024 at a compound annual growth rate (CAGR) of 9.4%. The growth observed in the historical period can be attributed to several key factors, including the digital revolution that drove increased use of integrated circuits in various applications, the growth of consumer electronics leading to higher demand for advanced microchips, the expansion of the telecommunications industry requiring integrated circuits for communication devices, the proliferation of automotive electronics, and the rise of industrial automation which relies on integrated circuits for control and processing. These factors collectively contributed to the growth and development of the integrated circuit industry during that time.

The integrated circuits market size is expected to see strong growth in the next few years. It will grow to $675.85 billion in 2028 at a compound annual growth rate (CAGR) of 8.9%. The anticipated growth in the forecast period can be attributed to several significant factors shaping the integrated circuit industry. These include the increasing integration of artificial intelligence (AI) and machine learning into a wide range of applications, the widespread expansion of 5G networks and the Internet of Things (IoT), the development and adoption of autonomous vehicles, the emergence of quantum computing technologies, and the growing demand for healthcare and medical devices that rely on advanced integrated circuits. Major trends expected in the forecast period encompass efforts toward miniaturization and advanced packaging of integrated circuits, the promotion of heterogeneous integration to combine various functionalities on a single chip, the focus on energy-efficient ICs, enhancements in security and encryption technologies, and a growing emphasis on custom IC design to meet specific industry needs. These trends are set to drive innovation and transformation within the integrated circuit sector.

The forecasted period in the integrated circuits (ICs) market anticipates a significant surge due to the increasing adoption of the Internet of Things (IoT). ICs are pivotal in sensing, comprehending, and transmitting intelligent data. The burgeoning IoT adoption is expected to amplify the demand for ICs owing to the manifold advantages offered by analog ICs across a wide spectrum of real-time connected devices and applications. Analog ICs exhibit efficient power consumption attributes and possess signal processing capabilities crucial for configuring an automated ecosystem of devices. Notably, as per the Gartner Symposium, the year 2021 witnessed a staggering count of 25 billion internet-connected devices, each reliant on ICs embedded with technology for communication, sensing, and interaction with the environment. This projected surge in IoT device adoption is poised to escalate the demand for ICs, consequently propelling the integrated circuits market's growth.

Integrated circuits come in different types, primarily categorized as general-purpose ICs and application-specific ICs. Application-specific integrated circuits (ASICs) are tailored to serve specific functions or applications, offering customized solutions for particular tasks. The various product categories within integrated circuits include digital ICs, analog ICs, and mixed-signal ICs, each catering to diverse sectors such as automotive, industrial, consumer electronics, IT and telecommunications, healthcare, aerospace and defense, and other specialized applications. Integrated circuits play a pivotal role in powering these industries and enabling technological advancements.

The integrated circuits market research report is one of a series of new reports that provides integrated circuits market statistics, including integrated circuits industry global market size, regional shares, competitors with a integrated circuits market share, detailed integrated circuits market segments, market trends and opportunities, and any further data you may need to thrive in the integrated circuits industry. This integrated circuits 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 forthcoming growth of the integrated circuits market is expected to be substantially influenced by the surging penetration of smartphones. Smartphone penetration signifies the monitoring of mobile phone usage, playing a pivotal role in the integrated circuits and other electrical component sectors. Integrated circuits are indispensable in smartphones, enabling vital functions such as data processing, application operation, and device management. According to Uswitch Limited's data from February 2023, the UK witnessed a 3.8% upsurge in mobile connections, reaching 71.8 million connections in 2022 compared to the preceding year. Forecasts suggest that by 2025, the UK's population will expand to 68.3 million, with an estimated 65 million individuals, accounting for 95% of the populace, owning a smartphone. This escalating smartphone penetration is a significant driver propelling the growth of the integrated circuits market.

One of the significant challenges impacting the integrated circuits market is the complexity involved in automotive IC design. The intricacies of the automotive IC's structure surpass those of commonplace electronic devices like mobile phones or home appliances, leading to challenges in developing highly reliable automotive ICs. Consumers are increasingly demanding enhanced automotive capabilities, safety, and high reliability in vehicles, intensifying the semiconductor's role in these innovative solutions. Many of the semiconductors integrated into Advanced Driver Assistance Systems (ADAS) are pivotal for the vehicle's functions and safety, where any faults are intolerable. The intricate design requirements for creating highly reliable automotive ICs present a substantial hindrance to the market's growth.

The proliferation of next-generation mobile networks like 4G and 5G necessitates the installation of new infrastructure, driving demand for various types of chipsets in the integrated circuits market. Radio frequency integrated circuits, system-on-chips, application-specific integrated circuits, cellular integrated circuits, and millimeter-wave integrated circuits are extensively used in 5G infrastructure development, amplifying the need for integrated circuits. The deployment of 5G, serving as the primary demand catalyst, has significantly increased semiconductor revenue for premium smartphones. Specifically, revenue for semiconductors in premium smartphones surged from 15,466 million in 2021 to 18,734 million in 2022, attributed to the demand spurred by 5G infrastructure.

Key players within the integrated circuits market are dedicated to innovating products to cater to customer needs, exemplified by the development of PCB-less pressure sensor integrated circuits (IC) MLX90824. The MLX90824 serves as an integrated circuit designed for the latest engine designs and their operational conditions. Melexis, a Belgium-based supplier of micro-electronic semiconductor solutions, including integrated circuits, introduced the MLX90824 in November 2022. This sensor-integrated circuit comprises a microelectromechanical system (MEMS pressure sensor element), an interface chip (CMOS technology), and passive components. Engineered with a smart package and die assembly concept, the MLX90824 ensures high output stability over time, even in rigorous automotive temperature and stress conditions.

In February 2022, Advanced Micro Devices Inc., a US-based semiconductor company, completed the undisclosed acquisition of Xilinx Inc. With this strategic move, Advanced Micro Devices Inc. aims to broaden its range of central processing units (CPUs), graphics processing units (GPUs), and field programmable gate arrays (FPGAs) to deliver high-performance and adaptive computing solutions. Xilinx Inc., another US-based semiconductor company, specializes in providing integrated circuits.

Major companies operating in the integrated circuits market include Intel Corporation, Texas Instruments, Analog Devices, STMicroelectronics, NXP semiconductors, ON Semiconductor, Micron, Toshiba, Broadcom, Qualcomm, Maxim Integrated, Intersil Corporation, Cypress, Microchip, Integrated Device Technology, Omron, Advanced Electronic Components & Solution, Epson, Diodes, Infineon, New Japan Radio Co. Ltd., Boeing, Atmel Corporation, Nippon Electric Company, Samsung, Taiwan Semiconductor, SK Hynix, Nvidia, Renesas Electronics Corporation, MediaTek Inc., Xilinx Inc., Cypress Semiconductor Corporation, Advanced Micro Devices Inc., Marvell Technology Group Ltd., Silicon Laboratories Inc., Microchip Technology Inc., Cirrus Logic Inc., Dialog Semiconductor PLC, Semtech Corporation, Lattice Semiconductor Corporation, Monolithic Power Systems Inc., Power Integrations Inc.

Asia-Pacific was the largest region in the integrated circuits market in 2023. North America was the second-largest region in the integrated circuits market. The regions covered in the integrated circuits market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the integrated circuits market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada

The integrated circuits market consists of sales of analog integrated circuits, digital integrated circuits, mixed-signal integrated circuits, and other integrated circuits. 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.


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