3D IC Packaging Market Size (2024 - 2029)

3D IC Packaging Market Analysis

The Global 3D IC Packaging Market is expected to register a CAGR of 16.8% during the forecast period (2022-2027). The growing adoption of advanced technologies such as AI, IoT, 5G, and high-performance computing is escalating the demand for 3D ICs, which deliver enhanced performance and bandwidth with lower latency. As such, the demand for 3D IC packaging will register significant growth over the forecast period.

• The growing microelectronics and semiconductor industry is developing a trend for vertically stacked integrated circuits (ICs), emerging as a viable solution for providing high performance, increased functionality, and reducing power consumption to fulfill electronic device requirements. The surging need for advanced architecture in electronic products such as connected devices, tablets, and smartphones to increase their energy efficiency and performance to do more than just texting and calling. Such factors are expected to bolster the growth of the 3D IC packaging market.
• As a result of the growing semiconductor applications, the slowdown in CMOS scaling and escalating costs have forced the industry to depend on packaging advancements for ICs. 3D stacking technologies have emerged as lucrative solutions that meet the required performance of applications such as machine learning, AI, and data centers. Therefore, the growing need for high-performance computing applications drives the 3D-TSV (Through Silicon Via) market over the forecast period.
• The increasing miniaturization of electronics devices is also anticipated to drive market growth. Growing demand for advanced architecture in tablets, smartphones, and gaming devices, along with surging usage of advanced wafer-level packaging technologies in sensors and MEMS, is expected to provide growth prospects for the 3D IC packaging market during the forecast period. According to WSTS, the IC market for semiconductors reached USD 463 billion in revenue in 2021 and is expected to grow by over 10% to USD 510.96 billion in 2022.
• The COVID-19 pandemic has significantly impacted various industries and has simultaneously propelled the development of advanced medical equipment and devices across the globe. Various medical equipment manufacturing companies announced to increase in the production of several new equipment and devices post the pandemic outbreak. As the applications of 3D IC packaging are numerous within the medical and healthcare industry, the increased manufacturing initiatives are expected to boost the demand for 3D IC packaging.
• However, the high Initial Investment and Increasing Complexity of Semiconductor IC Designs are expected to restrain the evolution of the market.

3D IC Packaging Industry Segmentation

3D IC packaging is a packing methodology for including numerous IC inside the same package. In a 3D structure, active chips are integrated by die stacking for the shortest interconnect and smallest package footprint.

The 3D IC Packaging Market is segmented by Packaging Technology (3D wafer-level chip-scale packaging (WLCSP), 3D TSV), by End-User (Consumer Electronics, Aerospace, and Defense, Medical Devices, Communications and Telecom, Automotive), and Geography.