Logic IC (Integrated Circuit) Market Size, Share & Industry Analysis (2025 - 2030)

Logic IC (Integrated Circuit) Market Analysis

The Logic IC Market size is estimated at USD 211.95 billion in 2025, and is expected to reach USD 295.19 billion by 2030, at a CAGR of 6.85% during the forecast period (2025-2030). In terms of shipment volume, the market is expected to grow from 67.97 billion units in 2025 to 83.46 billion units by 2030, at a CAGR of 4.19% during the forecast period (2025-2030).

The logic IC industry is experiencing transformative changes driven by the rapid evolution of automotive technologies and electrification trends. According to the International Energy Agency, global electric vehicle sales surged to 14 million units in 2023, marking a significant 35% increase from the previous year. This shift towards electric vehicles has catalyzed demand for sophisticated logic ICs in applications ranging from power management systems to advanced driver assistance features. The automotive sector's transformation is further accelerated by the progression toward autonomous driving, with industry projections from Roland Berger indicating that Level 4 autonomous vehicles will constitute 5% of the global market by 2030.

The integration of artificial intelligence and machine learning technologies across industries is reshaping the requirements for logic integrated circuit design and functionality. These advanced computing needs are driving innovation in semiconductor architecture, with manufacturers developing specialized processors optimized for AI workloads. The trend extends beyond traditional computing applications into emerging fields such as edge computing, IoT devices, and industrial automation, where real-time processing capabilities are crucial. This evolution is particularly evident in China's automotive sector, where new energy vehicle sales reached 846,000 units in August 2023, demonstrating the growing demand for sophisticated electronic systems.

The industry is witnessing significant investments in manufacturing capabilities and technological advancement. According to Bits&Chips, global logic semiconductor capital expenditures grew by 19% to USD 181.7 billion in 2022, reflecting the industry's commitment to expanding production capacity and advancing manufacturing processes. Major industry players are making strategic investments to enhance their manufacturing capabilities, exemplified by TSMC's recent collaboration with European semiconductor manufacturers to establish advanced manufacturing facilities in Germany, representing an investment exceeding EUR 10 billion.

The convergence of connectivity technologies and smart systems is driving demand for more sophisticated logic ICs in consumer and industrial applications. This trend is particularly evident in the automotive sector, where according to the Highway Loss Data Institute (HLDI), nearly all registered vehicles in the United States will be equipped with Advanced Driver Assistance Systems (ADAS) by 2043. The integration of these advanced features requires increasingly complex logic IC solutions capable of processing multiple inputs and managing sophisticated control systems. This evolution is further supported by developments in 5G technology and the Internet of Things, creating new requirements for high-performance, energy-efficient logic IC solutions.

Logic IC (Integrated Circuit) Market Trends

Increasing Focus on Device Integration

Device integration has become a critical driver in the logic IC market, enabling the consolidation of multiple components onto a single chip for smaller, more compact electronic devices. The increasing demand for compact and feature-rich mobile devices, such as smartphones and tablets, relies heavily on device integration, with logic ICs playing a significant role in integrating functions like processors, memory, wireless communication, sensors, and power management onto a single chip. This integration enables smaller form factors, improved power efficiency, and enhanced performance in mobile devices.

The Internet of Things (IoT) and Industrial Internet of Things (IIoT) applications are particularly driving the need for integrated devices. According to the Ericsson Mobility Report, total cellular IoT connections are forecast to reach around 3 billion by the end of 2023, with 60% of these connections expected to be broadband IoT by 2029. This growth in IoT adoption necessitates highly integrated logic integrated circuits that can combine various functions such as sensing, processing, and wireless communication while maintaining compact form factors and energy efficiency. The trend is further amplified in industrial applications, where integrated logic ICs enable the development of sophisticated control systems and automation solutions.

Increasing Capital Expenditures of Fabs to Augment Production Capacity

The semiconductor industry is witnessing substantial capital investments in fabrication facilities to enhance production capacity and technological capabilities. In April 2024, the Biden-Harris Administration announced a preliminary memorandum of terms with TSMC Arizona Corporation to provide up to USD 6.6 billion in direct funding under the CHIPS and Science Act. This investment will support TSMC's plan to invest more than USD 65 billion in three greenfield, leading-edge facilities located in Arizona, significantly boosting the production capacity for advanced semiconductors.

The trend of increasing capital expenditure extends globally, with various regions making strategic investments in semiconductor manufacturing. In February 2024, India announced plans to construct three semiconductor plants with investments worth more than USD 15 billion, aiming to establish itself as a global chip manufacturing hub. Notably, Tata Electronics' partnership with Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) involves an investment of nearly USD 11 billion to set up a manufacturing facility in Dholera, Gujarat, focusing on advanced 28-nanometer technology for sectors such as automotive, consumer electronics, and defense. These investments demonstrate the industry's commitment to expanding production capacity and advancing manufacturing capabilities to meet the growing demand for logic ICs.

Segment Analysis: By IC Type

MOS Logic Segment in Logic IC Market

The MOS Logic segment dominates the global Logic IC market, commanding approximately 99.9% market share in 2024, driven by its widespread adoption across various applications, including consumer electronics, automotive systems, and telecommunications. This segment's prominence is attributed to its superior performance characteristics, such as lower power consumption, higher integration density, and better noise immunity compared to other technologies. The segment is experiencing robust growth and is projected to grow at around 7% CAGR from 2024 to 2029, driven by increasing demand for advanced electronic devices, the rapid expansion of 5G networks, and the growing adoption of artificial intelligence and machine learning applications. The growth is further supported by ongoing technological advancements in semiconductor manufacturing processes, enabling the development of more sophisticated and efficient MOS Logic ICs with enhanced capabilities for emerging applications in autonomous vehicles, IoT devices, and high-performance computing systems.

Digital Bipolar Segment in Logic IC Market

The Digital Bipolar segment represents a specialized niche in the Logic IC market, offering unique advantages in specific applications where high speed and noise immunity are critical requirements. This technology continues to serve important roles in aerospace and defense applications, particularly in radar systems, guidance systems, and military communications equipment where reliability and performance under harsh conditions are paramount. The segment's evolution is being shaped by ongoing research initiatives, such as the development of innovative solutions using organic materials for flexible and transparent electronics. Recent collaborations between major industry players, such as the partnership between ROHM Co. Ltd and Toshiba Corporation in December 2023 for power device manufacturing, demonstrate continued investment in advancing bipolar technology capabilities. Despite its smaller market share, the segment maintains its relevance in specialized applications where its inherent characteristics provide distinct advantages over other technologies.

Segment Analysis: By Application

IT and Communication Segment in Logic IC Market

The IT and Communication segment dominates the global Logic IC market, holding approximately 39% market share in 2024. This significant market position is driven by the rapid advancement of communication technologies, including 5G networks, the Internet of Things (IoT), and edge computing applications. The segment's growth is further bolstered by the increasing adoption of artificial intelligence and machine learning technologies across various applications, such as natural language processing, image recognition, and predictive analytics. The demand for logic ICs in this segment is particularly strong in data centers and cloud computing infrastructure, with major players making substantial investments in these areas. For instance, Siemens announced a USD 150 million investment in 2023 for a new high-technology production facility to support data centers, anticipating a 10% annual growth in demand through 2030.

Automotive Segment in Logic IC Market

The automotive segment is projected to experience the highest growth rate of approximately 10% during the forecast period 2024-2029. This exceptional growth is primarily driven by the increasing integration of advanced electronics in modern vehicles, particularly in electric vehicles (EVs) and autonomous driving systems. The segment's expansion is supported by significant developments in Advanced Driver Assistance Systems (ADAS), vehicle electrification, and in-vehicle entertainment systems. Major automotive manufacturers are making substantial investments in EV infrastructure and technology development. The growth is further accelerated by stringent safety regulations and the increasing consumer demand for connected car features. The automotive industry's shift towards electric and autonomous vehicles, coupled with the rising adoption of sophisticated electronic systems, continues to drive the demand for advanced logic ICs in this segment.

Remaining Segments in Logic IC Market by Application

The remaining segments in the Logic IC market include Computer, Consumer Electronics, and Other Applications, each playing distinct roles in shaping the market landscape. The Computer segment represents a substantial portion of the market, driven by the increasing demand for high-performance computing devices and the growing adoption of cloud computing technologies. The Consumer Electronics segment continues to evolve with the rising popularity of smart devices, wearables, and home automation systems. The Other Applications segment, which includes industrial, manufacturing, healthcare, aerospace, and defense applications, demonstrates steady growth potential due to increasing automation and digitalization across these sectors. These segments collectively contribute to the market's diversity and overall growth, with each addressing specific technological needs and applications in their respective domains.

Logic IC Market Geography Segment Analysis

Logic IC Market in Americas

The Americas region represents a cornerstone of the global Logic IC market, commanding approximately 28% of the total market share in 2024. The region's strength stems from its robust semiconductor design and manufacturing capabilities, particularly in the United States. The market is primarily driven by the presence of leading technology companies, extensive research and development activities, and strong demand from sectors like automotive, consumer electronics, and telecommunications. The region benefits from substantial government support through initiatives like the CHIPS Act, which aims to strengthen domestic semiconductor manufacturing. The presence of major technology design companies and manufacturing facilities creates a conducive environment for market growth. The automotive sector, particularly the electric vehicle segment, continues to be a significant driver of demand for Logic ICs in the region. Additionally, the growing adoption of advanced technologies such as artificial intelligence, machine learning, and Internet of Things (IoT) applications further strengthens the market position of the Americas in the global Logic IC landscape.

Logic IC Market in Europe

Europe has demonstrated remarkable growth in the Logic IC market, achieving approximately 13% annual growth between 2019 and 2024. The region's market is characterized by its strong focus on automotive electronics, industrial automation, and sustainable technologies. European semiconductor companies are renowned for their advanced semiconductor design, manufacturing, and research expertise. The market benefits from continuous innovation in Logic IC technology, including the development of smaller process nodes, novel materials, and innovative architectures. The region's diverse industrial landscape contributes significantly to the demand for specialized Logic IC applications. The automotive sector, particularly in countries like Germany, France, and Italy, continues to be a major driver of market growth. The increasing focus on electric vehicles and autonomous driving technologies has created new opportunities for Logic IC manufacturers. Furthermore, Europe's commitment to digital transformation and Industry 4.0 initiatives has fostered an environment conducive to the adoption of advanced semiconductor technologies.

Logic IC Market in Asia-Pacific (China & Japan)

The Asia-Pacific region, particularly China and Japan, represents the largest market for Logic ICs and is projected to grow at a CAGR of approximately 7.5% from 2024 to 2029. The region serves as a global manufacturing hub for semiconductor production, with countries like 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. The market is driven by rapid technological advancements, increasing demand for consumer electronics, and growing automotive sector requirements. The region's strong focus on electric vehicles and autonomous driving technologies creates substantial demand for Logic ICs. Additionally, the expansion of 5G infrastructure and the growing adoption of IoT devices contribute significantly to market growth. The presence of major semiconductor manufacturers and the continuous investment in research and development activities further strengthen the region's position in the global Logic IC market.

Logic IC Market in Rest of Asia-Pacific and the World

The Rest of Asia-Pacific and World region encompasses diverse markets including Singapore, Taiwan, South Korea, India, and Middle East countries, each contributing uniquely to the Logic IC market landscape. This region is characterized by rapidly evolving technological infrastructure and increasing investments in semiconductor manufacturing capabilities. Countries like South Korea and Taiwan have established themselves as key players in the semiconductor industry, with strong capabilities in both design and manufacturing. The market is driven by growing demand from various sectors including consumer electronics, automotive, and telecommunications. The increasing focus on electric vehicle adoption, particularly in countries like India and other emerging economies, creates significant opportunities for Logic IC manufacturers. The region also benefits from government initiatives supporting semiconductor manufacturing and electronic component production. The presence of major electronics manufacturing hubs and the continuous expansion of production capabilities contribute to the region's growing importance in the global Logic IC supply chain.