APAC Analog IC Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 64.39 Billion |
| Market Size (2029) | USD 92.09 Billion |
| CAGR (2024 - 2029) | 7.42 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
APAC Analog IC Market Analysis
The APAC Analog IC Market size is estimated at USD 64.39 billion in 2024, and is expected to reach USD 92.09 billion by 2029, growing at a CAGR of 7.42% during the forecast period (2024-2029).
An analog IC is a network of interconnected components manufactured over a single wafer of semiconducting material. These components operate over a continuous range of input signals in discrepancy to their counterpart digital circuits having only two input and output voltage levels.
- These ICs are used in various applications, including third and fourth-generation (3G/4G) radio base stations and portable device batteries. RFICs (radio frequency ICs) are analog circuits that usually run in the frequency range of 3 kHz to 2.4 GHz (3,000 hertz to 2.4 billion hertz) circuits that would work at about 1 THz (1 trillion hertz). They are widely used in cell phones and wireless devices.
- The Japanese telecommunications market is one of the biggest in the world by revenue, with few large fixed and mobile network operators that have invested heavily in towers and fiber infrastructure over the past two decades despite an overall market underpinned by low economic and population growth. 5G adoption is also attaining traction in the region, and the region strives to reach almost full 5G coverage by the end of 2030.
- However, while advanced integrated circuit technologies and many other factors help digital circuits to be reliable, lower in cost, and smaller in size, the lack of skilled engineers and the complexity of the designs can result in expensive analog circuits and restrict the market's growth.
APAC Analog IC Market Trends
Surging Demand for Communication Devices Drives Market Growth
- In recent years, the emergence of different technologies, including smartphones, tablets, and various cloud-based services, has driven a steady increase in demand for faster and more pervasive personal mobile communication systems, which has resulted in the introduction of a growing variety of wireless base stations (BTS), creating the connection points between the mobile terminals and the main wired network.
- With the increasing investments in 5G, the number of 5G base stations is also rising in the region. For instance, according to the Ministry of Industry and Information Technology (MIIT), China aims to have 2 million installed 5G base stations by the end of 2022 to expand the country's next-generation mobile network. The Chinese mainland at the time has 1.425 million installed 5G base stations that support more than 500 million 5G users nationwide, making it the biggest network in the world, as per MIIT.
- The rapid growth of smartphones and smart home devices in the markets in recent years has fueled the demand for analog ICs in India and South Korea. The increasing adoption of the fifth-generation (5G) wireless technology for digital devices is also a major factor in the growing demand for connected devices and smart products, thereby increasing the need for the analog ICs used in these devices.
- As per the Korea Information Society Development Institute (KISDI), the ownership rate of smartphones in South Korea increased significantly to 94.8% in 2023 compared to 91% in 2020. Such an increase in the adoption of smartphones in the region is expected to increase the demand for analog ICs in the market.
- Japan is set to witness a significant shift in its mobile landscape by 2025. Projections indicate that 5G subscriptions, driven by major operators like NTT Docomo, KDDI, Softbank, and Rakuten, will outstrip 4G connections. This surge will establish 5G as the primary technology, capturing an estimated 70% share of the nation's mobile subscriptions, while 4G steadily diminishes.
- In addition, the Japanese government intends to reach a coverage of 95% of the population by March 2024. Such factors may play a significant role in driving the analog IC market in the region.
China to Hold a Significant Market Share
- China is among the top countries creating semiconductors and related devices and consumption. The government has noticed a boost in the electronics industry, particularly since the infamous trade dispute with the United States. Although the local analog IC design and manufacturing houses are still behind their international counterparts, the favorable industry regulations and growing focus of different industry stakeholders are anticipated to facilitate the industry's growth.
- In China, the automotive industry is among the leading market drivers for analog Ics. The fast growth of the new energy vehicle (NEV) in the domestic and international market and the growing demand for analog chips employed in automotive electronics are promoting the growth of the market.
- For instance, according to the China Association of Automobile Manufacturers (CAAM), in April 2022, China's new energy vehicle sales amounted to 299,000 units, of which 280,000 were electric passenger vehicles and 19,000 were commercial electric vehicles. Sales of passenger battery electric vehicles (BEVs) and passenger plug-in hybrid electric vehicles (PHEVs) were 212,000 and 68,000 units, respectively.
- The development of the automotive industry is driving the need for analog ICs, encouraging IC manufacturers to extend their production capacities further and design innovative solutions. For instance, in August 2022, analog IC foundry GTA Semiconductor started its capacity expansion project in the Lingang Special Area in the Shanghai Pilot Free Trade Zone. It plans to set up new production lines for automotive chips.
- The increasing penetration of 5G technology is driving the demand for 5G-enabled smartphones and supporting the digitization of other industries in the country. The high-speed data connectivity facilitated by 5G is expected to positively impact industrial automation and the adoption of advanced technologies such as AI, IoT, etc. As a broad range of electronic devices is used to establish such infrastructure, the demand for analog circuits is also expected to grow.
APAC Analog IC Industry Overview
The Asia-Pacific analog IC market is moderately consolidated, with many companies supplying ICs, and few have a small market share. The companies enter strategic partnerships and develop new technologies to maintain their market share.
- November 2022 - Magnachip Semiconductor Corporation announced that it launched its first Power Management Integrated Circuit (PMIC) for IT devices equipped with OLED screens, a core component to supply power to electronic devices. It plays an essential role as the battery life of handheld IT devices like laptops and tablets is highly dependent on power efficiency. The new IC incorporates one boost regulator for the power supply to source and gate drivers, one low dropout (LDO) regulator, two voltage reference operational amplifiers, three negative output LDO regulators, three high-current buck regulators for power supply to a timing controller, and two operational amplifiers for the gamma buffer.
- September 2022 - Analog Devices announced that it would increase its investment in the Chinese market and upgrade Analog Devices (Shanghai) Co. Ltd to Analog Devices (China) Co. Ltd as ADI's headquarters-based organization for investment and operation in China, which is an essential action to enforce the localization strategy in the Chinese market. After this upgrade, ADI China will have all-around capabilities from need research, product definition, R&D, market sales, and operations. The new company will create local independent decision-making products for the Chinese market and deliver a flexible RMB payment and settlement model.
APAC Analog IC Market Leaders
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ON Semiconductor
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Analog Devices Inc
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Infineon Technologies AG
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Microchip Technology Inc
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NXP Semiconductors NV
*Disclaimer: Major Players sorted in no particular order
APAC Analog IC Market News
- June 2024: Asahi Kasei Microdevices (AKM) unveiled a cutting-edge line of integrated circuits (ICs), boasting enhanced functionalities in a smaller form factor compared to its predecessors. These ICs come equipped with an inbuilt Delta-Sigma (ΔΣ) modulator, streamlining the need for separate shunt resistors and isolated analog-to-digital converters (ADCs).
- February 2024: Taiwan Semiconductor Manufacturing Co. Ltd (TSMC) launched Japan Advanced Semiconductor Manufacturing Inc. (JASM), in Kumamoto Prefecture, Japan. The event saw the convergence of suppliers, customers, business partners, academia, and representatives from the Japanese government, all coming together to express gratitude for their unwavering support and collaborative efforts that culminated in the project's success.
APAC Analog IC Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Value Chain Analysis
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Impact of Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Surging Demand for Communication Devices
5.1.2 Growing Automtive Sector in the Region
5.2 Market Challenges
5.2.1 Increasing Design Complexity of Analog IC
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 General-purpose IC
6.1.1.1 Interface
6.1.1.2 Power Management
6.1.1.3 Signal Conversion
6.1.1.4 Amplifiers/Comparators (Signal Conditioning)
6.1.2 Application-specific IC
6.1.2.1 Consumer
6.1.2.1.1 Audio/Video
6.1.2.1.2 Digital Still Camera and Camcorder
6.1.2.1.3 Other Consumers
6.1.2.2 Automotive
6.1.2.2.1 Infotainment
6.1.2.2.2 Other Infotainment
6.1.2.3 Communication
6.1.2.3.1 Cell Phone
6.1.2.3.2 Infrastructure
6.1.2.3.3 Wired Communication
6.1.2.3.4 Short Range
6.1.2.3.5 Other Wireless
6.1.2.4 Computer
6.1.2.4.1 Computer System and Display
6.1.2.4.2 Computer Periphery
6.1.2.4.3 Storage
6.1.2.4.4 Other Computers
6.1.2.5 Industrial and Others
6.2 By Country
6.2.1 China
6.2.2 Japan
6.2.3 South Korea
6.2.4 Australia and New Zealand
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Analog Devices Inc.
7.1.2 Infineon Technologies AG
7.1.3 Microchip Technology Inc.
7.1.4 NXP Semiconductors NV
7.1.5 ON Semiconductor
7.1.6 Skyworks Solutions Inc.
7.1.7 Stmicroelectronics NV
7.1.8 NXP Semiconductors NV
7.1.9 Renesas Electronics Corporation
7.1.10 Texas Instruments Incorporated
7.1.11 Qorvo Inc.
7.1.12 tek Technology Corporation (MediaTek Inc.)
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
APAC Analog IC Industry Segmentation
Analog integrated circuits are dedicated to designing and applying analog, radio frequency (RF), mixed-signal integrated circuits (ICs), and signal processing circuits and systems. Most digital consumer products, from appliances and cell phones to music players, have analog ICs feeding their digital heart, including other applications, such as automotive, military, and government.
The Asia-Pacific analog IC market is segmented by type (general-purpose IC (interface, power management, signal conversion, amplifiers/comparators (signal conditioning)), application-specific IC (consumer (audio/video, digital camera and camcorder), automotive (infotainment), communication (cell phone, infrastructure, wired communication, short range, short range), computer (computer system and display, computer periphery, storage), and industrial and others)), and country. The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
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APAC Analog IC Market Research Faqs
How big is the APAC Analog IC Market?
The APAC Analog IC Market size is expected to reach USD 64.39 billion in 2024 and grow at a CAGR of 7.42% to reach USD 92.09 billion by 2029.
What is the current APAC Analog IC Market size?
In 2024, the APAC Analog IC Market size is expected to reach USD 64.39 billion.
Who are the key players in APAC Analog IC Market?
ON Semiconductor, Analog Devices Inc, Infineon Technologies AG, Microchip Technology Inc and NXP Semiconductors NV are the major companies operating in the APAC Analog IC Market.
What years does this APAC Analog IC Market cover, and what was the market size in 2023?
In 2023, the APAC Analog IC Market size was estimated at USD 59.61 billion. The report covers the APAC Analog IC Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the APAC Analog IC Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
APAC Analog IC Industry Report
Statistics for the 2024 APAC Analog IC market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. APAC Analog IC analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
APAC Analog IC Market Report Snapshots
