The Advanced Packaging Market was valued at USD 39.60 Billion in 2024, and is projected to reach USD 55.00 Billion by 2030, rising at a CAGR of 5.70%. The market is experiencing robust growth primarily due to the increasing demand for smaller, faster, and more energy-efficient electronic devices. As traditional Moore's Law scaling faces physical limitations, semiconductor manufacturers are turning to advanced packaging technologies such as 2.5D/3D integration, fan-out wafer-level packaging (FOWLP), and system-in-package (SiP) solutions to improve performance without shrinking transistor sizes. These technologies enable heterogeneous integration, allowing different types of chips to be combined in a single package, which is crucial for applications in artificial intelligence, automotive electronics, and data centers.
The proliferation of Internet of Things (IoT) devices, smartphones, and wearable technology is another significant driver for advanced packaging solutions. These devices require compact form factors while maintaining high performance and low power consumption - demands that advanced packaging technologies are uniquely positioned to address. Additionally, the automotive industry's shift toward electric vehicles and autonomous driving systems necessitates sophisticated semiconductor packages that can withstand harsh environments while delivering reliable performance, further accelerating market growth.
The emergence of 5G technology and high-performance computing applications represents another crucial catalyst for the advanced packaging sector. These technologies demand unprecedented levels of interconnect density, thermal management, and signal integrity that only advanced packaging solutions can provide. The ability to integrate RF components, memory, and processors in tightly coupled packages is becoming essential for next-generation computing and communication systems, stimulating innovation and investment in packaging technologies.
Global supply chain diversification efforts following recent disruptions have also contributed to market expansion as countries and companies seek to establish resilient semiconductor manufacturing ecosystems. This has led to increased investment in advanced packaging facilities worldwide, with growth in Asia-Pacific regions. Furthermore, sustainability concerns are influencing packaging design choices, with manufacturers focusing on developing environmentally friendly materials and processes that reduce waste and energy consumption, aligning with broader industry trends toward green technology solutions.
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The proliferation of Internet of Things (IoT) devices, smartphones, and wearable technology is another significant driver for advanced packaging solutions. These devices require compact form factors while maintaining high performance and low power consumption - demands that advanced packaging technologies are uniquely positioned to address. Additionally, the automotive industry's shift toward electric vehicles and autonomous driving systems necessitates sophisticated semiconductor packages that can withstand harsh environments while delivering reliable performance, further accelerating market growth.
The emergence of 5G technology and high-performance computing applications represents another crucial catalyst for the advanced packaging sector. These technologies demand unprecedented levels of interconnect density, thermal management, and signal integrity that only advanced packaging solutions can provide. The ability to integrate RF components, memory, and processors in tightly coupled packages is becoming essential for next-generation computing and communication systems, stimulating innovation and investment in packaging technologies.
Global supply chain diversification efforts following recent disruptions have also contributed to market expansion as countries and companies seek to establish resilient semiconductor manufacturing ecosystems. This has led to increased investment in advanced packaging facilities worldwide, with growth in Asia-Pacific regions. Furthermore, sustainability concerns are influencing packaging design choices, with manufacturers focusing on developing environmentally friendly materials and processes that reduce waste and energy consumption, aligning with broader industry trends toward green technology solutions.
Advanced Packaging Market Report Highlights
- Based on packaging type, the flip chip segment accounted for the largest share, over 38.0% of the market in 2024. The embedded-die packaging type segment is expected to grow at the fastest CAGR of 6.3% during the forecast period.
- Based on application, the consumer electronics application segment dominated the advanced packaging market in 2024 by accounting for the largest revenue share of over 51.0%.
- The automotive application segment is projected to grow at the fastest CAGR of 6.3% over the forecast period of 2025 to 2030.
- Asia-Pacific dominated the market space by registering the largest revenue market share of over 43.0 in 2024 and is anticipated to grow at the fastest CAGR of 6.2% during the forecast period.
- In September 2024, Onto Innovation Inc. announced the opening of its Packaging Applications Center of Excellence (PACE) in Wilmington, Massachusetts, marking a significant milestone in the advancement of panel-level packaging (PLP) technology. This first-of-its-kind facility in the U.S. is dedicated to developing innovative PLP solutions that enable 2.5D and 3D chiplet architectures and AI packages.
Why Should You Buy This Report?
- Comprehensive Market Analysis: Gain detailed insights into the market across major regions and segments.
- Competitive Landscape: Explore the market presence of key players.
- Future Trends: Discover the pivotal trends and drivers shaping the future of the market.
- Actionable Recommendations: Utilize insights to uncover new revenue streams and guide strategic business decisions.
This report addresses:
- Market intelligence to enable effective decision-making
- Market estimates and forecasts from 2018 to 2030
- Growth opportunities and trend analyses
- Segment and regional revenue forecasts for market assessment
- Competition strategy and market share analysis
- Product innovation listings for you to stay ahead of the curve
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Table of Contents
Chapter 1. Methodology and Scope
Chapter 2. Executive Summary
Chapter 3. Global Advanced Packaging Market Variables, Trends, and Scope
Chapter 4. Global Advanced Packaging Market: Packaging Type Estimates & Trend Analysis
Chapter 5. Global Advanced Packaging Market: Application Estimates & Trend Analysis
Chapter 6. Global Advanced Packaging Market: Region Estimates & Trend Analysis
Chapter 7. Competitive Landscape
Chapter 8. Company Listing (Overview, Financial Performance, Products Overview)
List of Tables
List of Figures
Companies Mentioned
The companies profiled in this Advanced Packaging market report include:- Amkor Technology Inc.
- Advanced Semiconductor Engineering (ASE)
- Taiwan Semiconductor Manufacturing Company (TSMC)
- Intel
- Samsung Electronics
- JCET Group
- ASMPT SMT Solutions
- IPC International, Inc.
- SEMICON
- Yole Group
- Prodrive Technologies B.V.
Methodology
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Table Information
Report Attribute | Details |
---|---|
No. of Pages | 120 |
Published | April 2025 |
Forecast Period | 2024 - 2030 |
Estimated Market Value ( USD | $ 39.6 Billion |
Forecasted Market Value ( USD | $ 55 Billion |
Compound Annual Growth Rate | 5.7% |
Regions Covered | Global |
No. of Companies Mentioned | 12 |