Analog Integrated Circuit (IC) Market Size (2024 - 2029)

Analog IC Market Analysis

The Analog Integrated Circuit Market size is estimated at USD 91.26 billion in 2024, and is expected to reach USD 129.69 billion by 2029, growing at a CAGR of 7.30% during the forecast period (2024-2029).

• Analog integrated circuits (ICs) include interconnected components crafted on a single semiconducting wafer. Unlike digital circuits, which operate on just two voltage levels, analog components react to a continuous spectrum of input signals. These circuits are integral to electronic devices, processing and forging various energy output levels. Appliances such as oscillators, DC amplifiers, multi-vibrators, and audio amplifiers rely on analog circuits to ensure consistent input and output levels.
• The rise of technologies like the Internet of Things (IoT) is set to drive market growth, highlighting the advantages of analog ICs in a wide array of real-time connected devices. Notably, IoT's footprint is expanding with the surge in high-speed connectivity, cloud adoption, and data analytics. For example, Forbes projects over 207 billion devices will be globally networked by the closing of 2024, which presents a positive growth opportunity for the market.
• The demand for analog ICs has surged in recent years, fueled by the boom in smartphones, computers, consumer electronics, and electric vehicles. Smartphones utilize various ICs, including charge ICs, display PMICs, SoC PMICs, and Camera PMICs. Industry giants like Apple, Qualcomm, Intel, and Samsung S.LSI dominate this landscape. Given the rising production of technologically advanced smartphones and the integration of 5G and 6G, the global analog IC market is poised for significant growth.
• However, a dip was witnessed in global smartphone need in 2023 compared to 2022, attributed to inflation, waning consumer spending, and a subdued outlook. This downturn is likely to influence market growth negatively. However, a modest recovery is expected in FY 2024 owing to the rising demand for 5G smartphones and the global expansion of 5G networks, especially with the surge in 5G and foldable smartphones. According to GSMA forecasts, by 2025, 5G networks are expected to encompass a third of the global population.
• The reliance on skilled analog chip design engineers is pronounced. However, there is a substantial scarcity in the semiconductor industry. Cindi Harper from Intel highlighted that industry demand for talent outstrips supply. According to Ruchir Dixit of Siemens EDA, a shortfall of 250,000 semiconductor engineers is expected to be seen in the United States over the next five years. In China and Taiwan, deficits of 300,000 and 50,000 engineers are expected, respectively. Such imbalances pose challenges to market growth.
• The Russia-Ukraine War reverberated across multiple industries, including electronics. This geopolitical tension intensified existing semiconductor supply chain disruptions and chip shortages. Such disturbances have led to price volatility in essential raw materials like nickel, palladium, copper, silicon, and titanium, resulting in material shortages.
• According to SEMI, Russia supplied 45-50% of the world's palladium, a crucial material for semiconductor packaging. With global trading doors closing on Russia, semiconductor manufacturers are increasingly pursuing alternative raw material sources, further prolonging semiconductor production delays. This is expected to hamper the growth of the market.

Analog IC Industry Segmentation

An analog integrated circuit is dedicated to designing and applying analog, radio frequency (RF), mixed-signal integrated circuits (ICS), and signal processing circuits and systems. The market is growing, as every digital consumer product, from appliances and cell phones to music players, has analog ICS feeding its digital heart, including other applications, such as automotive, military, and government.

The analog IC market is segmented by type (general-purpose IC (interface, power management, signal conversion, and amplifiers/comparators), application-specific IC (consumer (audio/video and digital still camera and camcorder, and other consumers), automotive (infotainment and other infotainment), communication (cell phone, infrastructure, wired communication, short range, and other wireless), computer (computer system and display, computer periphery, storage, and other computers), and industrial and others)), and geography (North America, Europe, Asia-Pacific, Latin America, and Middle East and Africa). The report offers market forecasts and sizes in volume (units) and value (USD) for all the above segments.