Market Size of Global Application Specific Industrial Analog IC Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
CAGR | > 5.60 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | North America |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
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Application Specific Industrial Analog IC Market Analysis
The global application-specific industrial analog IC market is expected to register a CAGR of 5.6% during the forecast period (2022-2027). Factors such as rising Factory Automation, Miniaturization of semiconductors, and Advancements in the Internet of Things and Artificial Intelligence are driving the growth of the studied market.
- Penetration of semiconductor devices in industrial systems, owing to the increased popularity of smart factory initiatives, is boosting the demand for application-specific industrial analog ICs.
- For instance, According to Cisco, by 2022, machine-to-machine (M2M) connections that support IoT applications are likely to account for more than half of the world's 28.5 billion connected devices. The increase is attributed to manufacturers worldwide understanding the capabilities and advantages of next-generation robotics and automation technologies to facilitate upgradation in manufacturing in terms of productivity, quality, safety, and cost metrics.
- On the flip side, the COVID-19 pandemic disrupted the supply chain activities of the semiconductor and IC industry. The scarcity of raw materials used in manufacturing, and fluctuating prices of raw materials that cause the production cost of the final product to inflate and go beyond budget, labor shortages, shipping challenges, etc., contributed to the slow down of the market development.
- Several countries are taking stringent measures to recover from the disastrous impact of the pandemic. For instance, the president of the United States signed an executive order on Feb 24, 2021, authorizing a long-term supply chain review of six sectors of the economy and a short-term review of semiconductors and the materials needed to make them. This is because the pandemic disrupted the demand patterns significantly, and the way companies responded to this demand shock or failed to anticipate it led to a problem. The Federal Government has also developed a program, 'CHIPS for America,' promoting domestic manufacturing. The U.S. government is now coming up with incentives to bring back U.S. manufacturing of semiconductors, which is called 'reshoring.'
- Further, in 2021, South Korea announced ambitious plans to spend almost USD 450 billion over the next decade to establish the world's largest chipmaking base, joining China and the United States in a worldwide contest to control critical technology. Such investments and initiatives are expected to boost the growth of the studied market.
Application Specific Industrial Analog IC Industry Segmentation
Application-specific integrated circuits or ASICs are, as the name indicates, non-standard integrated circuits that have been designed for a specific use or application. Generally, an ASIC design will be undertaken for a product with a large production run, and the ASIC may contain a huge part of the electronics needed on a single integrated circuit. The Global Application Specific Industrial Analog IC Market is segmented by geography. The segmentation comprises an in-depth coverage of the global revenue generated from the sale of application-specific industrial analog ICs, along with the unit shipments.
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Global Application Specific Industrial Analog IC Market Size Summary
The global application-specific industrial analog IC market is poised for significant growth, driven by factors such as the rise of factory automation, semiconductor miniaturization, and advancements in IoT and AI technologies. The increasing integration of semiconductor devices in industrial systems, propelled by the popularity of smart factory initiatives, is enhancing the demand for these specialized ICs. The market is experiencing a surge due to the adoption of IoT technologies across various sectors, including manufacturing, energy, and utilities, which are undergoing digital transformation. This shift is part of the broader Industry 4.0 movement, where IoT and AI are central to developing smart factory automation, improving productivity, quality, and safety while reducing costs. However, challenges such as supply chain disruptions and raw material shortages, exacerbated by the COVID-19 pandemic, have impacted market growth, prompting governments to implement measures to bolster domestic semiconductor manufacturing.
Regionally, Asia-Pacific is expected to lead in market growth, with countries like China, Japan, and South Korea investing heavily in industrial automation and IoT technologies. China's 'Made in China 2025' initiative and Japan's collaboration with Malaysia to promote smart manufacturing are examples of strategic efforts to enhance technological capabilities. The region's early adoption of AI and IoT, supported by favorable infrastructure and government policies, is driving the proliferation of application-specific industrial analog ICs. In addition, the market is characterized by the presence of major players such as Texas Instruments and STMicroelectronics, who are navigating the challenges of rapid technological advancements and evolving consumer preferences. Collaborative efforts in research and development, like those between Taiwan's ITRI and USC, are further propelling innovation in the field, ensuring the market's dynamic growth trajectory.
Global Application Specific Industrial Analog IC Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power Of Suppliers
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1.2.2 Bargaining Power Of Buyers
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1.2.3 Threat Of New Entrants
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1.2.4 Threat Of Substitutes
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1.2.5 Intensity Of Competitive Rivalry
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1.3 Value Chain Analysis
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1.4 Assessment of the Impact of Covid-19 on the Market
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1.5 Technology Snapshot
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2. MARKET SEGMENTATION (The segmentation comprises an in-depth coverage on the global revenue generated from the sale of application specific consumer analog ICs, along with the unit shipments.)
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2.1 By Geography
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2.1.1 North America
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2.1.2 Asia Pacific
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2.1.2.1 China
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2.1.2.2 South Korea
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2.1.2.3 Japan
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2.1.2.4 Taiwan
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2.1.2.5 Rest of APAC
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2.1.3 Europe
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2.1.4 Rest of the World
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Global Application Specific Industrial Analog IC Market Size FAQs
What is the current Global Application Specific Industrial Analog IC Market size?
The Global Application Specific Industrial Analog IC Market is projected to register a CAGR of greater than 5.60% during the forecast period (2024-2029)
Who are the key players in Global Application Specific Industrial Analog IC Market?
Texas Instruments Incorporated, Analog Devices, Inc., Infineon Technologies AG, STMicroelectronics and NXP Semiconductors are the major companies operating in the Global Application Specific Industrial Analog IC Market.