Consumer Integrated Circuits Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 73.76 Billion |
| Market Size (2029) | USD 115.90 Billion |
| CAGR (2024 - 2029) | 9.46 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Consumer Integrated Circuits Market Analysis
The Consumer Integrated Circuits Market size is estimated at USD 73.76 billion in 2024, and is expected to reach USD 115.90 billion by 2029, growing at a CAGR of 9.46% during the forecast period (2024-2029).
- Consumer electronics devices such as smartphones, televisions, gaming consoles, and smart home devices rely on digital processing. The ICs, specifically digital logic ICs, are designed to process and manipulate digital signals and perform logical operations. They are essential for data storage, arithmetic calculations, control functions, and signal routing. Due to the surging adoption of consumer electronic devices, the demand for logic ICs is projected to grow.
- Further, the IoT market continues to grow, connecting various consumer electronic devices to enable seamless communication. The ICs are crucial in IoT devices as they handle data processing, sensor integration, connectivity, and control functions. As the IoT market expands, ICs capable of low-power and wireless communication will be increasingly sought after.
- In addition, the increasing use of IoT in the consumer electronics industry propels the excess adoption of AI, with applications such as virtual assistants, voice recognition, image processing, and machine learning. Logic integrated cicruits (ICs), particularly specialized AI accelerators, and neural network processors are likely to be in high demand to support the computational requirements of AI algorithms in consumer electronic devices.
- The design of modern IC (integrated circuit) technology poses several challenges. Advanced technology nodes in the manufacturing process exhibit notable variability. Variability in the operation of numerous devices on advanced ICs leads to fluctuations in operating voltage, temperature, and performance. To maintain essential qualities such as fidelity, consistency, and performance, IC design must address these effects. Complex designs may be susceptible to manufacturing variations, yield issues, and other challenges, thereby impeding market growth.
- Macroeconomic factors like Inflation have a significant impact on manufacturing. They cause higher manufacturing costs due to increased prices for raw materials, shipping costs, labor costs, and shortages. This often leads manufacturers to raise prices to sustain profitability, resulting in decreased product demand. Additionally, Inflation may result in contract limitations, changes in labor, and input challenges for manufacturers. The escalation of Inflation could impede the growth of the market being studied.
Consumer Integrated Circuits Market Trends
Logic IC is expected to Witness a Significant Growth
- Logic ICs contribute to the miniaturization of electronic devices, making them more portable and convenient to use. This portability is a significant factor in the increasing demand for wearables and portable gadgets. In addition, logic ICs are designed to be more energy-efficient, extending battery life for portable devices and reducing power consumption for home electronics. This efficiency is highly desirable for consumers looking to minimize energy costs and environmental impact.
- The consumer electronics industry is witnessing a rise in flexible and wearable devices, including smartwatches, fitness trackers, and flexible displays. Logic ICs designed for flexible substrates and low-power operation will be essential in enabling the functionality of these devices while maintaining their form factor and energy efficiency.
- Moreover, Japan's Ministry of Economy, Trade, and Industry (METI) reported that the production value of consumer electronic equipment in Japan reached approximately JPY 418.2 billion (USD 2.89 billion) in 2023. Consumer electronic equipment is a cornerstone of Japan's electronics industry, alongside industrial electronic equipment and components.
- Furthermore, logic ICs have a well-established supply chain. These ICs are widely available from numerous semiconductor manufacturers like Toshiba, Renesas, and Nexperia B.V. This availability ensures a consistent and stable supply of components for consumer electronics manufacturers. Additionally, manufacturers often provide technical support, documentation, and reference designs for their logic ICs, making it easier for designers to integrate them into their products.
- In addition, it contributes to cost reduction in consumer electronics manufacturing through various means. Their integration and compactness reduce the need for additional components and circuitry, resulting in cost savings. Additionally, logic ICs can be mass-produced at scale, benefiting from economies of scale and reducing manufacturing costs. Logic ICs offer speed, scalability, design flexibility, reliability, availability, and support while adhering to industry standards. These ICs contribute to cost reduction and are part of a global supply chain, making them highly suitable for the diverse needs of the consumer electronics industry.
Asia-Pacific is Expected to Hold a Significant Market Share
- Asia-Pacific is a global manufacturing hub for semiconductor production, with countries such as China and Japan leading in Semiconductor manufacturing and assembly. The presence of leading semiconductor foundries, assembly and testing facilities, and electronics manufacturing services enables efficient and cost-effective production of logic ICs. It is home to a vast and rapidly expanding consumer electronics market.
- According to the MIIT (Ministry of Industry and Information Technology), China has secured the top position worldwide in the production and sales of consumer electronics through its enhanced innovation and brand-building capacity. With the increasing investments in the region to improve its consumer electronics production capabilities, the market is expected to gain traction. According to (CAICT), the shipment volume of 5G mobile phones grew from 78.8% of the total mobile phone shipments in the country in 2022 to 82.8% in 2023. The consumer electronics market in the region is expected to increase significantly owing to the rising market demand.
- In addition to this, according to the Indian Brand Equity Foundation (IBEF), India's goal is to reach a target of USD 300 billion in electronics manufacturing and USD 120 billion in exports by 2025-26. Furthermore, the Union Budget 2023-24 has earmarked INR 16,549 crore (USD 2 billion) for the Ministry of Electronics and Information Technology, representing a substantial annual increase of approximately 40%. Numerous companies are consistently making significant investments in establishing manufacturing facilities, which will generate demand for various analog IC devices.
- The explosive growth of smartphones and smart home devices in recent years has fueled the demand for analog ICs in India and South Korea. South Korea, one of the largest countries, exhibits a substantial mobile phone penetration rate and is home to major vendors like Samsung and others. Moreover, the increasing adoption of the fifth-generation (5G) wireless technology for digital devices is also a significant contributing factor to the surging demand for connected devices and smart products, thereby increasing the need for the analog ICs used in these devices.
Consumer Integrated Circuits Industry Overview
The consumer integrated circuits market is fragmented, with the presence of major players like Texas Instruments Inc, STMicroelectronics N.V., Infineon Technologies AG, Intel Corporation, Analog Devices Inc, NXP Semiconductors N.V., On Semiconductor Corporation, and many others. Players in the market are adopting strategies such as partnerships, mergers, innovations, investments, and acquisitions to enhance the product offerings and gain sustainable competitive advantage.
- In June 2024, Vanguard International Semiconductor Corporation and NXP Semiconductors N.V. plan to establish a manufacturing joint venture, VisionPower Semiconductor Manufacturing Company Pte Ltd (VSMC). This new entity will be dedicated to constructing an advanced 300mm semiconductor wafer facility in Singapore. The facility will focus on producing 130 to 40nm mixed-signal, power management, and analog products specifically designed for the consumer and mobile sectors.
- In February 2024, Analog Devices Inc., announced a strategic partnership with TSMC, a prominent player in semiconductor foundry services globally. The collaboration's primary goal is to boost Analog Devices' future wafer capacity, utilizing the expertise of Japan Advanced Semiconductor Manufacturing, Inc. (JASM). TSMC's latest technology and manufacturing prowess have been instrumental in creating some of the world's most advanced semiconductor products. These products find applications across a spectrum, ranging from smartphones and tablets to high-performance computing and artificial intelligence.
Consumer Integrated Circuits Market Leaders
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Texas Instruments Inc
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STMicroelectronics N.V.
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Infineon Technologies AG
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Intel Corporation
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Analog Devices Inc
*Disclaimer: Major Players sorted in no particular order
Consumer Integrated Circuits Market News
- April 2024 - Infineon Technologies AG introduced its latest PSOC Edge microcontroller (MCU) family, specifically designed for machine learning (ML) tasks. The family comprises three distinct series: E81, E83, and E84. Each series offers a flexible selection of performance, features, and memory, ensuring compatibility across the range. Backed by robust system design tools and software, developers can seamlessly transition from idea to final product, facilitating the swift introduction of ML-driven IoT and consumer applications.
- January 2024 - Intel introduced its latest offering, the Intel Core 14th Gen mobile processor family. Spearheading this release is the flagship Intel Core i9-14900HX, boasting an impressive 24 cores and promising the pinnacle of mobile experiences for enthusiasts. Additionally, Intel rolls out its full range of Intel Core 14th Gen desktop processors, available in both 65-watt and 35-watt configurations. These processors cater to a spectrum of devices, from mainstream desktops to all-in-one and edge devices.
Consumer Integrated Circuits 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 Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Penetration of Smartphones, Tablets and Consumer Electronics
5.1.2 The evolution of IoT (Internet of Things) and 5G Technology
5.2 Market Restraint
5.2.1 Complex Fabrication Process owing to the Decreasing Chip Size
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Analog IC
6.1.2 Logic IC
6.1.3 Memory
6.1.4 Micro
6.1.4.1 Microprocessors (MPU)
6.1.4.2 Microcontrollers (MCU)
6.1.4.3 Digital Signal Processors
6.2 By Geography***
6.2.1 United States
6.2.2 Europe
6.2.3 Japan
6.2.4 China
6.2.5 South Korea
6.2.6 Taiwan
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles*
7.1.1 Texas Instruments Inc
7.1.2 STMicroelectronics N.V.
7.1.3 Infineon Technologies AG
7.1.4 Intel Corporation
7.1.5 Analog Devices Inc
7.1.6 NXP Semiconductors N.V.
7.1.7 On Semiconductor Corporation
7.1.8 Toshiba Electronic Devices & Storage Corporation (Toshiba Corporation)
7.1.9 Microchip Technology Inc
7.1.10 Renesas Electronics Corporation
7.1.11 MediaTek Inc.
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Consumer Integrated Circuits Industry Segmentation
An integrated circuit (IC) consolidates various electronic components, like transistors, resistors, and capacitors, onto a single semiconductor chip. This compact device is the cornerstone of contemporary electronic systems, delivering functionality and processing power efficiently. Integrated circuits (ICs) are known for low power consumption and minimal heat generation, enhancing energy efficiency. Moreover, their ability to be mass-produced at a lower cost translates to more affordable electronic devices for consumers.
The study tracks the revenue accrued through the sale of integrated cicruits products by various players globally. 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 consumer integrated circuits market is segmented by type (analog IC, logic IC, memory, and micro [microprocessors (MPU), microcontrollers (MCU), and digital signal processors]), 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.
| By Type | |||||
| Analog IC | |||||
| Logic IC | |||||
| Memory | |||||
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| By Geography*** | |
| United States | |
| Europe | |
| Japan | |
| China | |
| South Korea | |
| Taiwan |
Consumer Integrated Circuits Market Research FAQs
How big is the Consumer Integrated Circuits Market?
The Consumer Integrated Circuits Market size is expected to reach USD 73.76 billion in 2024 and grow at a CAGR of 9.46% to reach USD 115.90 billion by 2029.
What is the current Consumer Integrated Circuits Market size?
In 2024, the Consumer Integrated Circuits Market size is expected to reach USD 73.76 billion.
Who are the key players in Consumer Integrated Circuits Market?
Texas Instruments Inc, STMicroelectronics N.V., Infineon Technologies AG, Intel Corporation and Analog Devices Inc are the major companies operating in the Consumer Integrated Circuits Market.
Which is the fastest growing region in Consumer Integrated Circuits Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Consumer Integrated Circuits Market?
In 2024, the Asia Pacific accounts for the largest market share in Consumer Integrated Circuits Market.
What years does this Consumer Integrated Circuits Market cover, and what was the market size in 2023?
In 2023, the Consumer Integrated Circuits Market size was estimated at USD 66.78 billion. The report covers the Consumer Integrated Circuits Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Consumer Integrated Circuits Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Consumer Integrated Circuits Industry Report
Statistics for the 2024 Consumer Integrated Circuits market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Consumer Integrated Circuits analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
