Communication Analog Integrated Circuits Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Communication Analog Integrated Circuits Market Analysis

The Communication Analog Integrated Circuits Market size is estimated at USD 24.10 billion in 2024, and is expected to reach USD 31.23 billion by 2029, growing at a CAGR of 5.32% during the forecast period (2024-2029).

• Analog integrated circuits (ICs) find extensive application across various domains, particularly in third and fourth-generation (3G/4G) radio base stations and the batteries of portable devices. Radio frequency integrated circuits (RFICs) are a subset of analog circuits that typically operate within the frequency spectrum of 3 kHz to 2.4 GHz (3,000 hertz to 2.4 billion hertz), with some circuits capable of functioning at approximately 1 THz (1 trillion hertz). These components are prevalent in mobile phones and wireless communication devices.
• The market for communication devices and servers is also witnessing a surge in demand. According to the India Electronics and Semiconductor Association (IESA), as work-from-home increases, more data gets stored on the cloud, and more collaboration tools get deployed. A surge in demand is witnessed in the server, data centers, and computing segments. US-based Micron Technology also reported a more robust demand from data centers due to the remote-work economy, increased gaming, and e-commerce activity.​This is expected to drive the demand for analog communication ICs.
• Further, investments in 5G networks are surging, leading to a notable boost in data transfer speeds and heightened internet penetration. Within the realm of 5G wireless cellular networks, the efficiency of smartphone batteries and the optimization of power have emerged as pivotal factors, propelling the growth of communication analog ICs for power management.
• Furthermore, the arrival of 5G technology has significantly increased the investment in telecom base stations, which is driving the demand for communication analog integrated circuits. Countries across the world are making significant efforts to upgrade their telecommunication infrastructures.
• In May 2024, the National Telecommunications and Information Administration (NTIA), a division of the Department of Commerce, declared its plan to allocate a substantial amount of USD 420 million aimed at the development of radio equipment. This financial support is intended to improve the deployment of open networks, both domestically and globally. This initiative marks the second Notice of Funding Opportunity (NOFO) released by the Public Wireless Supply Chain Innovation Fund. The primary goal of this NOFO is to promote commercialization and foster innovation in the area of open radio units.
• The anticipated demand for communication analog integrated circuits is expected to face challenges throughout the forecast period, primarily due to the rising complexity associated with analog circuit design. The intricacies of analog design surpass those of digital design, necessitating a greater depth of knowledge and consideration of various factors. These include a comprehensive understanding of efficient power management, precise measurement techniques, wireless connectivity, and dependable circuit protection, all of which further influence the growth of the market.
• The global communication analog integrated circuits market may be influenced by macroeconomic factors, including variations in exchange rates and the dynamics of international trade. Alterations in currency values can have a significant effect on the expenses associated with imported integrated circuit products and raw materials, thereby affecting the pricing strategies and profitability of manufacturers and distributors in the integrated circuit sector. Furthermore, trade policies, tariffs, and trade agreements can also play a crucial role in determining the availability and cost of integrated circuits, particularly for nations that rely heavily on imports or exports.

Communication Analog Integrated Circuits Market Trends

Power Management IC Segment is Expected to Hold Significant Market Share in the Market

Communication Analog Integrated Circuits Industry Segmentation

An analog integrated circuit focuses on the design and implementation of analog, radio frequency (RF), mixed-signal integrated circuits (ICs), as well as circuits and systems for signal processing.

The study tracks the revenue accrued through the sale of communication analog ICs by various players in the global market. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The study further analyses the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report’s scope encompasses market sizing and forecasts for the various market segments.

The communication analog integrated circuits market is segmented by type (general-purpose IC [interface, power management, signal conversion, and amplifiers/comparators]) and by geography (United States, Europe, Japan, China, Korea, Taiwan, and Rest of the World). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.