FPGA Market Report: Trends, Forecast and Competitive Analysis to 2031

• The publisher forecasts that, within the technology category, SRAM is expected to witness the highest growth over the forecast period.
• Within the end use category, data center and computing will remain the largest segment.
• In terms of regions, APAC is expected to witness the highest growth over the forecast period.

Emerging Trends in the FPGA Market

• Integration with AI and Machine Learning: FPGAs are increasingly integrated with AI and machine learning algorithms to speed up processing and improve performance. The growth of this trend is due to the growing demand to analyze data instantly, make immediate decisions, and take efficient actions in applications such as autonomous vehicles, data centers, and edge computing. FPGAs complement AI workloads with customizable hardware acceleration.
• Rise of Heterogeneous Computing: Heterogeneous computing, which involves integration with several processors, including CPUs, GPUs, and FPGAs in one system, is gaining momentum. FPGAs are employed in offloading particular tasks from both the CPU and GPU, enhancing the efficiency and performance of the overall system. It will allow for complex computation and greater computing capacity so that several industries can handle vast volumes of data.
• Growth in Edge Computing: FPGAs are increasingly deployed in edge computing environments to enable real-time data processing and reduce latency. This trend is driven by the need for efficient processing at the edge of the network to support applications in IoT, smart cities, and industrial automation. FPGAs provide flexibility in handling the diverse workloads of edge computing.
• High-Bandwidth FPGAs: There is an increasing need for high-bandwidth and high-performance FPGAs driven by applications such as large-scale data processing and fast data transmission, among others. Technology advances in FPGAs are focused on increasing data throughput and decreasing latency to support applications at the frontiers of telecommunications, data centers, and high-frequency trading.
• Emphasis on Power Efficiency: Power efficiency in the design of FPGAs has garnered more significance with increasing energy costs and ecological burdens. Vendors are developing solutions that have better power management features to guarantee low power consumption without compromising high performance. This trend contributes to sustainability objectives and reduces operating costs in many fields of application.

Recent Developments in the FPGA Market

• New FPGA Families Launched: Major FPGA vendors such as Xilinx and Intel have announced new families of FPGAs that are much more powerful and capable processors. These new products allow very data-intensive applications such as AI and machine learning to run with higher performance. They are targeted to support the increasing demands within data centers and telecommunications.
• Advances in Low-Power FPGAs: Among the main developments, the industry has focused on low-power FPGA solutions, as modern mobile and IoT applications need to be increasingly energy-efficient. Low-power FPGA technology innovations facilitate extended battery life and reduced energy consumption with higher performance and functionality.
• FPGA-as-a-Service Growth: The concept of FPGA-as-a-Service (FaaS) is gaining momentum, where users can access FPGA resources through cloud platforms. This will increasingly make FPGA deployments flexible, scalable, and low-cost without heavy upfront investment in hardware and allow for on-demand processing capabilities in different applications.
• Integration with Advanced Networking Technologies: In advanced networking technologies, such as 5G and high-speed data communication, the integration of FPGAs is continuous. These integrations support higher data throughput, lower latency, and improved network performance, enabling new applications and services in telecommunications and data-intensive industries.
• Increased Automotive Applications: Presently, more applications are being found in automotive industries where some important recent industrial developments relate to ADAS (Advanced Driver Assistance Systems) and the design of autonomous vehicles. Recent developments focus more on enhancing the reliability, safety, and performance of FPGAs used in critical automotive applications to support the industry’s push for more sophisticated and autonomous driving technologies.

Strategic Growth Opportunities in the FPGA Market

• Expanding Data Centers: The growth in data centers presents enormous opportunities for FPGA producers. FPGAs are increasingly used to accelerate data and improve performance in data centers. Investments in high-performance FPGAs can address the emerging need for efficient and scalable data infrastructure.
• 5G Network Deployment: The deployment of 5G networks enables the use of FPGAs in high-speed data transmission applications, further enhancing the performance of 5G networks. Within 5G infrastructure, FPGAs will improve base station performance, manage large volumes of high-bandwidth data, and power advanced features.
• Automotive Growth: With the tremendous growth of autonomous vehicles and ADAS, the automotive industry opens avenues for FPGA growth. High-performance FPGAs have become essential in processing sensor data, managing real-time decision-making, and maintaining safety and reliability in automotive applications.
• IoT Advances: The Internet of Things is a key driver of FPGA demand, as FPGAs support edge computing and real-time data processing. FPGAs have the potential to significantly improve performance in IoT devices by offering custom processing within a wide array of applications, from smart cities to industrial automation.
• Adoption of AI and Machine Learning: Integration with AI and machine learning applications opens up significant growth avenues for FPGAs. In turn, FPGAs provide hardware acceleration to AI algorithms, enabling faster and more sophisticated processing, including image recognition, natural language processing, and predictive analytics across a wide range of applications.

FPGA Market Driver and Challenges

The factors responsible for driving the FPGA market include:

• Technological Advancement: The market also grows through continual improvements in FPGA technology, such as increased processing speed, logic density, and power consumption efficiency. Innovations, such as integrating AI and machine learning algorithms into FPGAs, ensure better performance in complex applications. These advances keep FPGAs aligned with the demands of high-performance computing, telecommunications, and industrial automation applications.
• Greater Demand for High-Performance Computing: Along with advancements in big data analytics and real-time processing needs, applications leveraging high-performance FPGAs are on the rise. FPGA applications in data centers, AI, and machine learning must create high throughput with low latency in executing computation-intensive tasks. This trend creates a demand for more powerful and versatile FPGA solutions to meet these performance needs.
• Expansion of 5G Networks: With 5G networks expanding globally, the outlook for FPGA manufacturers appears bright. FPGAs are a key component of 5G infrastructure, supporting high-speed data transmission and processing. Advanced networking features supported by FPGAs include beamforming and network slicing, which enhance performance and flexibility across the entire network.

Challenges in the FPGA market include:

• High Development Costs: For new and advanced FPGAs, significant research and development costs are required for design and manufacturing. These high development costs make it difficult for smaller firms to enter such expensive projects and can lower the overall profitability of FPGA solutions, limiting market participation.
• Increased Competition in Markets: The FPGA market is highly competitive, with several established and new players vying for market share. This intense competition demands continuous innovation and differentiation, challenging companies to remain competitive and invest in new technologies.
• Compliance with Regulations: Another challenge in FPGA fabrication involves strict regulatory standards and, in some cases, industry-specific certification. Safety, environmental, and performance regulations require significant investments in testing and certification processes. This situation can affect production schedules and costs, influencing the market.

List of FPGA Companies

Some of the FPGA companies profiled in this report include:

• Advanced Micro Devices
• Intel Corporation
• Microchip Technology
• Lattice Semiconductor Corporation
• Achronix Semiconductor Corporation
• Quicklogic Corporation
• Efinix
• Flex Logix
• Gowin Semiconductor corporation
• S2C

FPGA by Segment

Technology [Analysis by Value from 2019 to 2031]:

• SRAM
• Flash
• Antifuse

Configuration [Analysis by Value from 2019 to 2031]:

• Low-End FPGA
• Mid-Range FPGA
• High-End FPGA

Node-Size [Analysis by Value from 2019 to 2031]:

• ≤16 nm
• 20-90 nm
• >90 nm

End Use Industry [Analysis by Value from 2019 to 2031]:

• Telecommunication
• Consumer Electronics
• Test, Measurement and Emulation
• Data Center and Computing
• Military and Aerospace
• Industrial
• Automotive
• Healthcare
• Others

Region [Analysis by Value from 2019 to 2031]:

• North America
• Europe
• Asia Pacific
• The Rest of the World

Country Wise Outlook for the FPGA Market

• United States: In the U.S., the FPGA trend is also focused on high-performance computing and artificial intelligence applications. Companies like Xilinx and Intel continue releasing new families of FPGAs with greater data processing capabilities and machine learning functions. Ongoing efforts are focused on integrating FPGAs with cloud services and edge computing, enabling the growing demand for real-time data analytics and AI-driven solutions.
• China: China is making significant efforts to develop and manufacture FPGAs, contributing to the country’s move toward semiconductor manufacturing independence. Chinese companies are investing heavily in R&D to develop commercially viable FPGAs for communications, automotive, and industrial automation. The integration of FPGAs into 5G infrastructure is also being pursued to improve network performance and support emerging technologies.
• Germany: Germany utilizes FPGA technology to enable the automotive and industrial automation industries. Several companies in Germany are working to make FPGAs more reliable and robust for systems used in autonomous driving and industrial robotics. The focus is on high precision with low-latency processing capabilities due to stringent requirements in these applications.
• India: The growing market in India is driven by investments in telecommunications and defense sectors. Indian firms are focusing on providing cost-effective FPGA solutions for networking equipment and military applications. There is an emerging trend of integrating FPGAs with AI and machine learning applications to drive better performance and efficiency across industries.
• Japan: Japan is leading FPGA technology, with a strong focus on consumer electronics and robotics. Japanese companies are working on FPGAs with improved power efficiency and higher processing powers, finding applications in high-definition video processing and robotics. Another key development area is the integration of FPGAs with advanced sensor technologies, driving innovation in automation and smart devices.

Features of the Global FPGA Market

• Market Size Estimates: FPGA Market size estimation in terms of value ($B).
• Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.
• Segmentation Analysis: FPGA Market by various segments, such as by technology, configuration, node-size, end use industry and region in terms of($B).
• Regional Analysis: FPGA Market breakdown by North America, Europe, Asia Pacific, and Rest of the World.
• Growth Opportunities: Analysis of growth opportunities in different, technology, configuration, node-size, end use industry, and regions for the FPGA market.
• Strategic Analysis: This includes M&A, new product development, and competitive landscape of the FPGA market.
• Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

This report answers the following 11 key questions: