Market Trends of Computer and Peripherals Standard Logic IC Industry
This section covers the major market trends shaping the Computer & Peripherals Standard Logic IC Market according to our research experts:
Increased Consumer Demand for Advanced Computers and Peripherals
The COVID-19 pandemic has changed how people use technology to live, work, play, and communicate. The PC market experienced its first substantial growth in 2020 when the pandemic began to force people to work and learn from home. The pandemic has revved the PC market, with increased demand from working professionals, students, and gamers, allowing several notable players to launch advanced products.
For instance, in October 2021, Microsoft launched Windows 11 after declaring 'the PC is back' at the start of the pandemic due to a big jump in Windows usage. AMD and Intel have also launched their latest laptop chips at CES 2022.
During the first pandemic wave, the demand for PCs emerged from the necessity to move from 'one PC per home' to 'one PC per person.' The second pandemic wave accelerated demand as organizations and consumers were driven to adapt to online education, remote work, and other day-to-day requirements.
Consumers are also becoming more discerning as they seek premium designs in diverse form factors for work, learning and gaming. The demand for advanced gaming PCs among students and young working professionals has increased with a booming gaming ecosystem and competitive esports tournaments.
The market witnessed an exponential growth in demand for gaming PCs that are sleek in design and offer desktop-like performance for gaming and other intensive workloads. For instance, globally, in 2021, AMD's computing and graphics segment grew 32% y-o-y to USD 2.6 billion, propelled by both Ryzen and Radeon processor sales. The factors mentioned above significantly contribute to the growth of the studied market.
The Asia Pacific Region is Expected to Witness a High Market Growth
According to China's National Bureau of Statistics, China produced approximately 32.66 million completed computers in April 2022. Furthermore, according to the Ministry of Electronics and Information Technology, the value of computer hardware output in India was roughly INR 215 billion in the fiscal year 2020. In 2021, this rose to INR 220 billion. The value of computer hardware produced in the country has been steadily increasing. Such massive spending on computer production will allow the local computer and peripherals standard logic IC manufacturers to expand their product portfolio.
The regional companies are producing different standard logic IC products to meet the rising demand of the customer in the region and increase their market share by incorporating new features and developments into the existing products. For example, Rohm Semiconductor, a Japan-based company, provides standard logic IC products to cater to the specific needs of consumers. The product family consists of analog switches, multiplexers, logic gates, and function logic.
Furthermore, Various standard 5400/7400 logic family kinds are in high demand, boosting the standard logic IC devices market's prospects in the region. The rising popularity of integrated circuits (ICs) can be attributed to their ease of use and availability. However, in the conventional logic devices industry, there is a need to improve the sophisticated functionality of products. In recent years, there has been a greater emphasis on enhancing this element. Standard logic IC devices are limited in complex functions due to their defined functionality. In addition, many chips must be placed on a printed circuit board (PCBs). The items are available off-the-shelf.
The government bodies in the region are announcing new schemes to increase the production of semiconductors. Such initiatives by the government will drive the studied market. For Instance, in December 2021, To establish India as a worldwide hub for hi-tech production and attract multinational chip makers, the Indian government approved a Rs 76,000-crore scheme to expand semiconductor and display manufacturing. The new mission, led by world specialists in the semiconductor and display industries, will serve as the plan's nodal agency, ensuring that the scheme is implemented efficiently and smoothly. India wants to increase electronics manufacturing from USD75 billion to USD 300 billion in the next six years, and semiconductor chips are an essential element of that ecosystem.
Furthermore, In May 2021, South Korea announced ambitious plans to spend almost USD 450 billion over the next decade to develop the world's largest chipmaking base, joining China and the United States in a worldwide contest to control the critical technology. Under a national program created by the President's administration, Samsung Electronics Co. and SK Hynix Inc. would lead more than KRW 510 trillion in investment in semiconductor research and manufacture in the years through 2030.
