Market Trends of Industrial Integrated Circuits Industry
Memory Segment is Expected to Register the Fastest Growth in the Market
- Memory integrated circuits (ICs) are specialized electronic components designed primarily for data storage within various electronic devices. These circuits facilitate the processing of codes and provide either temporary or permanent storage solutions for a range of industrial applications, including automation and robotics.
- Memory integrated circuits (ICs) are frequently utilized in industrial control systems, panel PCs, and embedded applications. They are particularly advantageous in industrial machinery control devices that necessitate cost-effective, high-capacity memory solutions.
- This is due to their straightforward architecture, which employs capacitors and field-effect transistors (FETs), allowing for economical production relative to memory capacity. DRAM modules exhibit resilience against vibrations, shocks, dust, and other harsh conditions, ensuring reliable performance even in the most rigorous workloads and diverse operational environments.
- Thus, the rising automation and increasing adoption of robotics across the globe will support the demand for memory IC. According to the data shared by VDMA, Germany's robotics and automation industries generated a turnover of EUR 16.2 billion (USD 17.71 billion) in 2023. This figure is projected to rise to EUR 16.8 billion (USD 18.36 billion) in 2024. As a result, the growing industrial sector is expected to present significant market prospects due to the growing implementation of automation technology.
- Moreover, several players operating in the market are focusing on introducing new memory products to gain a competitive advantage. In April 2024, Micron Technology Inc. announced the launch of its latest innovation - the Micron Serial NOR Flash Memory. The product is designed to enhance performance and reliability for various industrial and consumer electronics applications.
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China is Expected to Hold Significant Market Share in the Market
- China is quickly becoming one of the important markets for industrial ICs due to automation and robotics. The country leads the industrial robot market and is one of the major manufacturing countries in Asia-Pacific. The number of companies deploying factory automation, process, and robotics technology in the country is rising, which further represents a huge opportunity for companies offering industrial ICs in China.
- The demand for industrial ICs in China is increasing as the country is home to growing industrial activities and manufacturing growth. For instance, according to the National Bureau of Statistics of China, China's industrial sector accounted for approximately 31.7% of the country's GDP in 2023, making it the primary driving force behind the economy.
- Furthermore, the national strategic initiative referred to as Made in China 2025, launched by the Chinese government, has been instrumental in promoting the development of the integrated circuit industry in the country. The primary objective of this plan is to enhance the semiconductor industry. For instance, in May 2024, China launched its largest semiconductor investment fund to promote the advancement of the domestic chip industry, reflecting the government's persistent efforts to achieve self-sufficiency.
- According to Tianyancha, the third phase of the National Integrated Circuit Industry Investment Fund successfully raised CNY 344 billion (around USD 47.5 billion) from the Central government, state-owned banks, and companies, including the Industrial & Commercial Bank of China Ltd. These efforts are notably enhancing demand within the industrial integrated circuit market.
- China plans to invest over USD 1 billion to enhance its manufacturing sector and domestic technology in an effort to maintain its global competitiveness while providing minimal new assistance for the ailing real estate market. It is evident that industrial support will be Beijing's top priority in the coming year.
- Moreover, as the industrial sector rises, more demand for ICs is expected. US Statistics Division reports that China leads the world in manufacturing, accounting for 28.4% of the total global manufacturing output. This contribution amounts to nearly USD 4 trillion, significantly enhancing the global economy.
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