Growing Demand For Semiconductor Devices And Technological Advancements Are Increasing The 3D IC And 2.5D IC Market Size During the Forecast Period 2022-2027

The 3D IC And 2.5D IC Market size is estimated to reach US$180.53 billion by 2027, growing at a CAGR of 12.9% from 2022-2027. High-performance computing, data center networking, growing demand for consumer electronics devices and autonomous vehicles are pushing the adoption rates of 3D And 2.5D ICs. These factors drive the market growth. In FY 2021, as per IEA, sales of electric vehicles doubled since the previous year to reach a new record of 6.6 million. Also, nearly 10% of global car sales were electric in 2021. However, high initial investments and the increasing complexity of IC designs are hampering the market growth during the forecast period.

Moreover, new technological innovations are being introduced to cater to the growing demand for electronic devices. Adoption of these new technologies in the consumer electronics industry boosts system performance, connectivity and reliability. In August 2020, Samsung Electronics announced the availability of its silicon-proven 3D IC packaging technology, X-Cube, which provides a significant increase in system performance. Such technological advancements would drive up the demand for 3D IC And 2.5D ICs.

The APAC region generated approximately 38% of the global revenues in the 3D IC And 2.5D IC industry in 2022. Growing demand for consumer electronics, increasing demand for IoT-connected devices and the presence of major manufacturers are driving the market growth in this region. In August 2022, Intel showcased the most recent architectural and packaging breakthroughs that enable 2.5D and 3D tile-based chip designs. This would increase the number of transistors on a package from 100 billion to 1 trillion by 2030.

Rising digitization, increasing remote work and remote operations trends and rising consumer demand for electronics have fueled the demand for advanced semiconductor devices that enable a bunch of new capabilities. As the demand for semiconductor devices grows, the demand for 3D IC And 2.5D ICs increases. It is because they can provide the form factor and processing power needed in today's digitized world. Consumer electronics is one of the most prominent end-user industries for semiconductor vendors. Growth in the smartphone industry, increasing adoption of smart devices and wearables and rising penetration of IoT devices in applications like intelligent homes are driving the growth of semiconductor devices, thereby positively impacting the market. According to the Semiconductor Industry Association, global semiconductor industry sales were US$ 47.4 billion during August 2022. Such growing demand would positively influence the 3D and 2.5D IC industry outlook during the forecast period.

The major players in the 3D IC And 2.5D IC Market include STMicroelectronics, Samsung Electronics, Amkor Technology, Intel, TSMC and Toshiba. In October 2022, TSMC announced the launch of the innovative 3DFabric Alliance, a considerable introduction to TSMC's Open Innovation Platform (OIP), to assist customers in overcoming the increasing hurdles of semiconductor and system-level design challenges.