Industrial Analog Integrated Circuits Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 11.22 Billion |
| Market Size (2029) | USD 14.95 Billion |
| CAGR (2024 - 2029) | 5.90 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Industrial Analog Integrated Circuits Market Analysis
The Industrial Analog Integrated Circuits Market size is estimated at USD 11.22 billion in 2024, and is expected to reach USD 14.95 billion by 2029, growing at a CAGR of 5.90% during the forecast period (2024-2029).
- The industrial segment is witnessing significant growth in the adoption of analog ICs, driven by various technological, economic, and market factors. These factors enhance the functionality, efficiency, and reliability of industrial applications, making analog ICs essential components in modern industrial systems.
- The push toward automation in manufacturing and industrial processes is a major driver for the growth of analog ICs. As industries adopt automated systems, the demand for sensors and control systems that require analog processing increases. Analog ICs play a crucial role in interfacing with sensors, enabling precise control and monitoring of industrial equipment.
- Further, the Internet of Things (IoT) is transforming industrial operations by enabling real-time data collection and analysis. Analog ICs are essential for converting analog signals from sensors into digital data that can be processed and analyzed. The growing adoption of IoT solutions in industries such as manufacturing, energy, and logistics is driving the demand for analog ICs that facilitate these connections.
- Industry 4.0 is transforming the way companies manufacture their products. The term Industry 4.0 refers to the smart and connected production systems designed to sense, predict, or interact with the physical world, making real-time decisions that support production. In manufacturing, it can potentially increase productivity, energy efficiency, and sustainability.
- Integrating analog IP onto a complex silicon chip is a time-intensive process, further complicated by the inconsistent quality of current analog IP products. Analog circuits are highly sensitive to their on-chip environments, making any issues during integration and testing potentially detrimental to reliability during manufacturing and mass production. Additionally, delays in analog IP delivery can impede chip planning and result in missing critical customer feedback until it is too late.
- Geopolitical events, such as Russia's invasion of Ukraine, the China-US trade war, elections, and the ongoing conflict in Israel, significantly impact the global supply chain. This is especially true for essential raw materials crucial to traditional industries, defense, high-tech sectors, aerospace, and green energy. The semiconductor industry has experienced notable disruptions due to the Russia-Ukraine conflict and subsequent economic downturns. Rising inflation and interest rates have curtailed consumer spending, dampening demand and stunting growth in the analog integrated circuit market.
Industrial Analog Integrated Circuits Market Trends
General-purpose IC is Expected to Witness Significant Growth
- General-purpose ICs are versatile components widely used in various industrial applications. Their adaptability and functionality make them essential in enhancing the performance and efficiency of industrial systems. General-purpose ICs, such as operational amplifiers, are commonly used for signal conditioning in industrial applications. They amplify, filter, and process sensor signals, ensuring that the data collected is accurate and usable for further processing. This is crucial in applications like temperature monitoring, pressure sensing, and other measurement systems.
- In industrial environments, data acquisition systems rely on general-purpose ICs to convert analog signals from sensors into digital data. These ICs can facilitate the integration of various sensors into a single system, allowing for real-time monitoring and control of industrial processes. This capability is essential for maintaining operational efficiency and ensuring quality control.
- General-purpose ICs are integral to control systems used in automation and process control. They are employed in PLCs and distributed control systems to manage and automate machinery and processes. These ICs help execute control algorithms that regulate operations, ensuring optimal performance and safety.
- The increasing government initiatives to expand their renewable capacity are further boosting the segment growth. For instance, as reported by IRENA, the leading countries for installed renewable energy in 2023 were China, the United States, and Brazil. China led the renewable energy sector with an installation capacity of approximately 1,453 GW. The United States followed in second place with a capacity of around 388 GW.
Asia-Pacific is Expected to Witness the Highest Growth Rate
- Increasing competition in today's world has reduced the time to market and fuelled customer expectations of faultless products. This trend has compelled manufacturers to implement AI algorithms that notify manufacturing teams of emerging production faults likely to cause product quality issues. It has enabled companies to take up their quality game and prevent the damage that high defect rates and product recalls can do to a company and its brand.
- Moreover, governments across the region are taking initiatives to deploy advanced technologies in their manufacturing sector. By 2025, Shanghai aims to build 10 industry-leading robot brands and 100 benchmark robot application scenarios and expand the industrial scale to 100 billion yuan.
- Further, China is experiencing substantial growth due to the increasing number of industries in the country and their integration with automation to enhance return on investment. China boasts the largest manufacturing industry globally, contributing significantly to market demand. Manufacturing companies in China prioritize adopting 4.0 solutions to optimize and elevate their operations, thereby propelling market expansion.
- India is steadily advancing towards Industry 4.0 through initiatives such as the National Manufacturing Policy and the PLI scheme. The National Manufacturing Policy aims to increase the manufacturing sector's contribution to GDP to 25% by 2025. Launched in 2022, the PLI scheme seeks to elevate India's core manufacturing sector to international standards.
- Manufacturing emerged as one of the high-growth sectors in India. The 'Make in India' program places India on the global map as a manufacturing hub and globally recognizes the Indian economy. According to IBEF, India can export goods worth USD 1 trillion by 2030 and is on the road to becoming a significant global manufacturing hub.
Industrial Analog Integrated Circuits Industry Overview
The industrial analog integrated circuit mb]arket is consolidated and features key players like Infineon Technologies AG, Microchip Technology, Analog Devices Inc., and STMicroelectronics. Market participants strategically leverage partnerships and acquisitions to bolster their product portfolios and establish a sustainable competitive edge.
- In June 2024, Asahi Kasei Microdevices launched a new line of integrated circuits (ICs) offering advanced capabilities in a more compact package than previous solutions. The CQ36 series of digital output coreless current sensor ICs caters to the growing robotics market. The series features a built-in Delta-Sigma (ΔΣ) modulator, enabling the IC to replace traditional shunt resistors and isolated analog-to-digital converters (ADCs) in a single package.
- In February 2024, Analog Devices announced its partnership with TSMC, which is one of the leading semiconductor manufacturers, to advance Analog's future wafer capacity by leveraging Japan Advanced Semiconductor Manufacturing (JASM), which is TSMC’s majority-owned manufacturing subsidiary.
Industrial Analog Integrated Circuits Market Leaders
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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
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ON Semiconductor
*Disclaimer: Major Players sorted in no particular order
Industrial Analog Integrated Circuits Market News
- April 2024: Triad Semiconductor Inc., a manufacturer of analog mixed-signal integrated circuit designs, announced the opening of its new design center located in Pocatello, Idaho. Nestled within The Sterling Building at 353 North Fourth Avenue, the facility began operations in early April, marking a significant stride in Triad’s ongoing pursuit of growth and cutting-edge innovation in the field of analog and mixed-signal engineering.
- March 2024: Onsemi announced the formation of the Analog and Mixed-Signal Group (AMG), focused on expanding Onsemi’s portfolio of power management and sensor interface devices to unlock an additional USD 19.3 billion total addressable market and accelerate the company’s growth in the automotive, industrial, and cloud end markets.
Industrial Analog Integrated Circuits Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumption 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 Demand for Automation
5.1.2 Growing Demand for Energy Efficiency
5.2 Market Restraint
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
6.2 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
6.2.7 Latin America
6.2.8 Middle East and Africa
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 Richtek Technology Corporation (MediaTek Inc.)
7.1.7 Skyworks Solutions Inc.
7.1.8 STMicroelectronics NV
7.1.9 Renesas Electronics Corporation
7.1.10 Texas Instruments Inc.
7.1.11 Qorvo Inc.
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
Industrial Analog Integrated Circuits Industry Segmentation
Analog ICs are electronic circuits that process analog signals that vary smoothly over time. Unlike digital ICs that deal with discrete values, analog ICs handle signals that represent real-world phenomena such as temperature, light, sound, and voltage. For market estimation, the revenue generated from sales of analog integrated circuits used in the industrial industry worldwide is being tracked. 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 industrial analog integrated circuits market is segmented by type (general-purpose IC [interface, power management, signal conversion, and amplifiers/comparators] and application-specific) and geography (United States, Europe, Japan, China, South 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 | ||||||
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| Application-specific IC |
| By Geography | |
| United States | |
| Europe | |
| Japan | |
| China | |
| South Korea | |
| Taiwan | |
| Latin America | |
| Middle East and Africa |
Industrial Analog Integrated Circuits Market Research FAQs
How big is the Industrial Analog Integrated Circuits Market?
The Industrial Analog Integrated Circuits Market size is expected to reach USD 11.22 billion in 2024 and grow at a CAGR of 5.90% to reach USD 14.95 billion by 2029.
What is the current Industrial Analog Integrated Circuits Market size?
In 2024, the Industrial Analog Integrated Circuits Market size is expected to reach USD 11.22 billion.
Who are the key players in Industrial Analog Integrated Circuits Market?
Analog Devices Inc., Infineon Technologies AG, Microchip Technology Inc., NXP Semiconductors NV and ON Semiconductor are the major companies operating in the Industrial Analog Integrated Circuits Market.
Which is the fastest growing region in Industrial Analog 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 Industrial Analog Integrated Circuits Market?
In 2024, the North America accounts for the largest market share in Industrial Analog Integrated Circuits Market.
What years does this Industrial Analog Integrated Circuits Market cover, and what was the market size in 2023?
In 2023, the Industrial Analog Integrated Circuits Market size was estimated at USD 10.56 billion. The report covers the Industrial Analog Integrated Circuits Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Industrial Analog Integrated Circuits Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Industrial Analog Integrated Circuits Industry Report
Statistics for the 2024 Industrial Analog Integrated Circuits market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Industrial Analog 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.
