Market Size of Japan Analog IC Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Forecast Data Period | 2024 - 2029 |
Historical Data Period | 2019 - 2022 |
CAGR (2024 - 2029) | 5.74 % |
Market Concentration | Medium |
Major Players*Disclaimer: Major Players sorted in no particular order |
Japan Analog IC Market Analysis
The Japan Analog IC Market is expected to register a CAGR of 5.74% during the forecast period.
The Japanese analog IC market was valued at USD 7.23 billion in the previous year. It is expected to register a CAGR of 5.74%, reaching USD 10.22 billion by the end of the forecast period. Japan's consumer electronics industry, one of the largest in the world, is one of the most significant factors driving the demand for analog ICs in the country.
- As per the Japan Electronics and Information Technology Industries Association (JEITA), due to the strong export performance of electronic devices and components that go along with the rising percentage of electronic components in vehicles and the effect of rising 5G measurement demand on electric measuring instruments, domestic production by the Japanese electronics industry increased by 2% to JPY 11,124.3 billion (~USD 70.92 billion)in 2022.
- It is anticipated that the production of electronic components and semiconductors will increase in 2023 as a result of increased investments in digitalization, industrial automation, and environmental protection, causing domestic output to increase by 3% annually to JPY 11,402.9 billion (~USD 72.69 billion). These factors may drive market growth during the projected period.
- Analog IC design focuses on creating circuits that operate in and are optimized for continuous time-domain behavior. With all the basic devices in an IC responding to continuous time stimulus, analog design forms the foundation for all IC design. Modern IC technology has many design challenges. There is significant variability in the manufacturing process for advanced technology nodes. The operation of a high number of devices on advanced ICs also results in variability, which manifests as changes in operating voltage, operating temperature, and performance. Analog design must compensate for these effects to ensure essential qualities like fidelity/precision, consistency, and performance.
- As the nation attempts to restore its semiconductor manufacturing sector, which was hampered by COVID-19-related supply chain disruptions, Japan is presently experiencing a scarcity of qualified workforce. The five years between now and 2030 are "the last and biggest chance for Japan's semiconductor industry to regain its footing" after years of losing global market share, according to an electronics industry body representing major manufacturers like Toshiba and Sony in an appeal to the Ministry of Economy, Trade, and Industry in May 2022.
- According to the Japan Electronics and Information Technology Industries Association (JEITA), in order to stay up with the rate of investment, eight major companies will need to employ roughly 35,000 engineers.
Japan Analog IC Industry Segmentation
Analog integrated circuits were created mainly by hand calculations and employing process kit components before microprocessors and other software-dependent design tools were developed. Operational amplifiers, linear regulators, oscillators, active filters, and phase-locked loops are all created using analog integrated circuit architecture. When constructing an analog integrated circuit, the properties of the semiconductor, such as power dissipation, gain, and resistance, are of more importance.
The Japanese analog IC market is segmented by type (general purpose IC (interface, power management, signal conversion, amplifiers/comparators (signal conditioning)), application-specific IC (consumer (audio/video, digital still camera and camcorder), automotive (infotainment), communication (cell phone, infrastructure, wired communication, short range), computer (computer system and display, computer periphery, storage), industrial and others)). The market sizes and forecasts are provided in terms of value in USD for all the above segments.
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Japan Analog IC Market Size Summary
The Japan analog IC market is poised for significant growth, driven by the robust demand from the consumer electronics and automotive sectors. As one of the largest consumer electronics markets globally, Japan's need for analog ICs is bolstered by the increasing integration of electronic components in vehicles and the rising demand for 5G technologies. The market is also experiencing a resurgence in semiconductor manufacturing, as Japan seeks to reclaim its position in the global market after setbacks due to COVID-19-related supply chain disruptions. This recovery is supported by investments in digitalization, industrial automation, and environmental protection, which are expected to enhance domestic production of electronic components and semiconductors. The analog IC design process, which focuses on optimizing circuits for continuous time-domain behavior, remains crucial as the industry navigates challenges such as variability in advanced technology nodes and the need for precision and consistency in performance.
The market landscape is moderately consolidated, with key players like Analog Devices KK, STMicroelectronics NV, Mitsubishi Electric Corporation, and Skyworks Solutions Inc. actively engaging in product innovations and strategic partnerships to maintain competitiveness. The automotive industry, a significant consumer of analog ICs, is witnessing increased demand due to trends such as autonomous vehicle development, enhanced connectivity, and the integration of IoT technologies. The Japanese government's initiatives to advance next-generation mobility solutions further stimulate this demand. Additionally, the growing smartphone penetration and the expansion of the automotive sector, including the production of passenger cars and buses, contribute to the market's expansion. Companies like Renesas Electronics Corporation and Mitsubishi Electric Corporation are at the forefront of developing advanced IC solutions, such as vehicle power management ICs and high-power RF modules, which are expected to drive further growth in the analog IC market during the forecast period.
Japan 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 Threat of New Entrants
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1.2.2 Bargaining Power of Consumers
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1.2.3 Bargaining Power of Suppliers
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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 Industry Value Chain/Supply Chain Analysis
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1.4 Impact of Macroeconomic Factors on the Market
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 General-purpose IC
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2.1.1.1 Interface
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2.1.1.2 Power Management
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2.1.1.3 Signal Conversion
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2.1.1.4 Amplifiers/Comparators (Signal Conditioning)
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2.1.2 Application-specific IC
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2.1.2.1 Consumer
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2.1.2.1.1 Audio/Video
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2.1.2.1.2 Digital Still Camera and Camcorder
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2.1.2.1.3 Other Consumers
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2.1.2.2 Automotive
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2.1.2.2.1 Infotainment
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2.1.2.2.2 Other Infotainment
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2.1.2.3 Communication
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2.1.2.3.1 Cellphone
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2.1.2.3.2 Infrastructure
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2.1.2.3.3 Wired Communication
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2.1.2.3.4 Short Range
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2.1.2.3.5 Other Wireless
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2.1.2.4 Computer
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2.1.2.4.1 Computer System and Display
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2.1.2.4.2 Computer Periphery
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2.1.2.4.3 Storage
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2.1.2.4.4 Other Computers
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2.1.2.5 Industrial and Others
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Japan Analog IC Market Size FAQs
What is the current Japan Analog IC Market size?
The Japan Analog IC Market is projected to register a CAGR of 5.74% during the forecast period (2024-2029)
Who are the key players in Japan Analog IC Market?
Renesas Electronics Corporation, Analog Devices KK, Mitsubishi Electric Corporation, Skyworks Solutions Inc. and STMicroelectronics are the major companies operating in the Japan Analog IC Market.