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Digital IC Market Overview
The Digital IC Market size is
forecast to reach US$96.28 billion by 2027, growing at a CAGR of 7.85% from 2022
to 2027. Technological developments and the growing demand for
consumer electronics such as smartphones, laptops and PCs; the miniaturization of
these devices have tremendously boosted the Digital IC industry forward.
New trends such as the Internet of Things, cloud computing and
big data are rapidly evolving, and it is expected that they will drive digital
integrated circuit technology in new directions. Digital ICs are being used
across all industry verticals and new technologies and components such as
magnitude comparators and priority encoders are being used to increase the
functionality of these Digital ICs. Due to technological advancements, Digital
ICs are now being manufactured by using gallium arsenide as their primary
material. Gallium arsenide as a material has some technical advantages over
silicon as electrons can travel faster through the crystalline structure of
gallium arsenide in comparison to silicon. Microprocessor chips such as digital
signal processors are also a primary component of Digital ICs as they increase
the operational efficiency of the ICs. These factors have revolutionized
Digital ICs and as a result, create a positive influence on the Digital IC
Industry Outlook over the forecast period.
Report Coverage
The report: “Digital IC Industry Outlook – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the
Digital IC industry.
By Raw Material: Gallium arsenide, Silicon
wafers and Others.
By Component: Microcontroller, Memory (Flash,
EPROM, DRAM, Others), Digital Signal Processors and Others.
By End-use Industry: Communication Devices, Industrial,
Automotive, Consumer Electronics and Others.
By Geography: North America (the U.S., Canada,
Mexico), South America (Brazil, Argentina, Others), Europe (UK, Germany, France,
Italy, Spain, Others), APAC (China, Japan, South Korea, India, Australia, Others)
and RoW (Middle East, Africa).
Key Takeaways
- In the Digital IC market report, the digital signal processor is analyzed to grow at a significant rate with a CAGR of 8.01% due to increasing demand for high-performance chips, technological advancements and the adoption of internet protocols.
- The Consumer electronics equipment industry is expected to grow at the highest rate with a CAGR of 8.29% owing to factors such as growing demand for miniaturized high-performance devices and the incorporation of IoT.
- APAC region had the largest share in the global Digital IC Market size, owing to factors such as growing demand for consumer electronics and wireless infrastructure.
Global Digital IC Market Value Share, By Region, 2021 (%)
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Digital IC
Market Segment Analysis - by Component
By Component, the Digital Signal Processors in Digital
IC Market report is analyzed to grow with the highest CAGR of 8.01% during the
forecast period 2022-2027. The growing integration of high-performance or multi-channel digital signal processing
algorithms, technological advancements in wireless infrastructure and increased
adoption of internet protocols for communications are major factors boosting
the digital signal processors segment in the Digital IC Market industry. In
September 2021, Vivo announced the official launch of its first self-developed
chip, the Vivo V1, which is an image signal processor with high computing
power, low latency, low power consumption and other features. These
developments will boost the demand for Digital ICs over the forecast period.
Digital IC
Market Segment Analysis - by End-use Industry
Based on End-use Industry, the Consumer electronics equipment segment in the Digital
IC Market report is analyzed to grow at the highest CAGR of 8.29% during the
forecast period 2022-2027 owing to factors such as miniaturization of devices,
incorporation of IoT and growing demand for high-performance devices. Components
such as Magnitude
comparators, Priority encoders help in making Digital ICs more efficient and
powerful which are then being used in consumer electronics devices. According to
the India Cellular & Electronics Association (ICEA), mobile phone
production in India is expected to reach US$190 billion by 2025. As a result of
this growing demand for consumer electronics, the demand for Digital ICs is
increasing, thereby expanding the Digital IC market size.
Digital IC Market Segment Analysis - by Geography
APAC dominated the global market for Digital IC Market with a market share of 41% in 2021 and was also analyzed to have significant growth over the forecasting period. Growing demand for consumer electronics, significant investment in wireless infrastructure and increased semiconductor chip manufacturing operations are propelling the Digital IC industry growth in this region. According to the China Academy of Information and Communications Technology (CAICT), domestic smartphone shipments reached 342.8 million units in 2021, with an increase of 15.9% year-on-year growth. These factors will bolster the APAC region’s presence in the global Digital IC market.
Digital IC
Market Drivers
Rising Data Traffic and incorporation of IoT-connected devices contribute to the Digital IC Industry growth
Increasing
adoption of IoT-connected devices coupled with increasing data traffic is
attributed to the growth of the Digital IC market. The adoption of Digital IC
components such as magnitude comparators and priority encoders aid in meeting consumer
requirements by providing high-speed data processing, lower power consumption,
improved audio and video signal processing and many other benefits. According
to Ericsson's mobility report, total mobile data traffic in India will reach
12EB per month in 2021, up from 9.4EB in the previous year. These factors will
increase the demand for digital ICs, thereby positively influencing the Digital
IC industry outlook.
The growing semiconductor industry and wide applications of integrated circuits across all industry verticals will drive the Digital IC Industry forward
As the demand for electronic devices is constantly
rising, the demand for integrated circuits is also rising. Especially in
developing regions, the demand for integrated circuits is so high because the integrated circuit is the primary component of the electronics manufacturing
process. This factor in turn boosts the Digital IC market. In March 2022, EV
Group and Teramount collaborated to implement innovative technologies for
photonic integrated circuits. Developments such as these will further boost the
Digital IC market.
Digital IC Market Challenges
Designing and programming complexities associated with Digital ICs act as major restraints in the market growth
Designing and
programming architectures of Digital ICs includes complexities, which act
as a major challenge, limiting the market growth. With the need to balance features
such as low costs, low power consumption, high performance and optimized
computing, chip designers find it difficult to design or program while
maintaining these parameters, which limits the market growth. Furthermore, due
to the high accuracy and precision required when manufacturing these ICs, there
is a significant need for skilled and trained labor, raising the semiconductor
manufacturer's production costs. These factors are major impediments to the
Digital IC Market growth.
Digital IC Industry Outlook
Product launches, collaborations and R&D activities are key strategies adopted by players in the Digital IC Market. The top 10 companies in the Digital IC industry include:
1. Lattice Semiconductor Corporation
2. Taiwan Semiconductor Manufacturing Company
3. Samsung Corporation
4. Integrated Device Technology Inc.
5. Texas Instruments Inc.
6. Skyworks Solutions Inc.
7. Semiconductor NV
8. Micross Components Inc.
9. Toshiba Corporation
10. MediaTek Inc.
Recent Developments
- In March 2022, Micross Components, Inc. announced a collaboration with Apogee Semiconductor. Micross and Apogee Semiconductor now offer various Digital ICs across multiple form factors including interface, logic and translation ICs.
- In December 2021, Taiwan Semiconductor Manufacturing Company announced a collaboration with Sony and together they would invest US$7 billion to establish a chip manufacturing facility in Japan. These developments will boost Digital IC production and increase the market size.
- In July 2019, Texas Instruments announced the release of C2000 microcontrollers with enhanced communication capabilities. This Digital IC will aid designers in their use of a single chip to improve connectivity.
Relevant Reports
Report
Code: ESR 0268
Report
Code: ESR 0105
Report Code: ESR 0250
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