Market Trends of Americas Logic IC Industry
Growing Adoption of Logic IC in Automotive Industries
To keep drivers safe, integrated circuits are used in vehicles. ICs improve connectivity driving and safety innovation among drivers, which is expected to fuel their market demand. The rapid electrification of vehicles is driving the growth of the automotive IC market. The increasing demand for electric vehicles worldwide, because of rising consumer awareness about environmental pollution and rising oil prices, is influencing semiconductor demand and has led the market of logic IC to grow.
Some of the key drivers of the market include increased vehicle production, rising demand for electric vehicles, and the growing need for electronics in vehicles to enhance their features. Additionally, several technological advancements, such as the implementation of IoT and favorable government standards to produce autonomous, connected, and low-emission vehicles, are further fuelling the demand for logic ICs in the market during the forecast period.
Further, the automotive industry is regularly looking forward to wide-scale electrification and advancements. The introduction of smart connected tech and autonomous features are also driving the demand for the implementation of semiconductors. Hence, the increased use of circuitry, MPUs, and sensors directs the increased deployment of standard logic ICs for power regulation and rectification.
The new-age technology catering to safety and modification of ride dynamics is aggressively increasing the use of semiconductors in passenger vehicles. To meet safety norms like airbags, autonomous features, and electronic stability control (ESC) programs, companies follow strict regulations on the circuit level and use one of the best logic ICs available. For instance, companies like Texas Instruments (TI) offer automotive logic devices compliant with the AEC-Q100 standard. The ICs support a wide range of supply voltages, ranging between 5V and 1.2V, to meet the requirements of any automotive system, including infotainment systems, body control modules, automotive lighting, and advanced driver assistance systems (ADAS).
Moreover, IoT Services and remote access features like geofencing, telematics, fleet management systems, autonomous and semiautonomous driving assists, in-vehicle infotainment, and other SIM-based utilities are taking the automotive sector towards dense communication applications. This encourages the deployment of communication modules and more sensors to provide detailed schematic input parameters for further processing. The modules and sensors use logic ICs extensively to maintain electrical safety standards and power efficiency, especially in electric vehicles.
Furthermore, as the world is shifting toward Electric Vehicles (EVs), the requirement of extensive regulation of electrical parameters invites logic gate ICs for safer implementation of the charging and discharging technologies. Automotive companies utilize the potential and wide range of voltage handling capabilities of logic ICs through the vehicles and final deployment stages and charging infrastructure. These factors drive the innovation and advancement in the standard logic IC industry to optimize power consumption, operating voltages, and scaling properties.
Increasing Demand For Consumer Electronics Promote Market Growth
The electronic component market has encountered robust growth in the past few years owing to its expanding application areas. This growth is significantly contributed by the increase in consumer electronics products such as DVDs, TV, mobile phones, etc., and office automation products such as computers, printers, etc. This high growth has forced several companies in this industry to set up novel manufacturing facilities and expand their production capacity. Furthermore, continuous technological advancements are expected to boost the application areas of standard logic ICs, thus driving the growth of the consumer standard logic ICs market in the coming years.
The growth of the consumer standard logic devices market has arisen from the advancements made in the packaging of modern, low-power logic products. The standards underlying configuration and functionality have grown simultaneously. Electronics manufacturers constantly seek to leverage the underlying technologies for designing logic ICs.
Consumer electronics significantly contribute to the market growth of communication standard logic IC. Manufacturers in the consumer electronics industry increasingly emphasize creating devices that use the least amount of power possible while still providing the required performance in a compact design. The increased emphasis on device integration is therefore anticipated to fuel the market for logic ICs.
The increasing demand for smartphones, laptops, and tablets, and internet penetration worldwide due to the adoption of work-from-home and learn-from-home culture during the COVID-19 pandemic, has further led to demand for advanced semiconductor components. The advent of 5G has led to significant demand for 5G-enabled mobile phones worldwide. Thus, the growing demand for mobile phones is anticipated to drive the demand for advanced chips, such as standard logic ICs, during the forecast period.
With the ecosystem of connected devices flourishing, applying logic ICs in smartphones is projected to boost the adoption rate. The United States is one of the major countries in the region, driving the adoption of connected devices and supporting the adoption of the technology. For instance, according to the Consumer Technology Association (CTA), the retail sales for consumer electronics (CE) market in the United States has increased from USD 467 billion in 2020 and is expected to USD 512 billion in 2024. Such trends in the market are expected to further emphasize the adoption of logic ICs for various applications in the consumer electronics industry during the forecast period.
