Application Specific Integrated Circuit (ASIC) Market Size, Share, Growth, and Industry Analysis, By Type (Full Custom Design ASIC, Semi-Custom Design ASIC (Standard Cell Based ASIC and Gate Array Based ASIC), Programmable ASIC), By Application (Telecommunication, Industrial, Consumer Electronics, Security, & Others), Regional Insights and Forecast to 2032

Updated On: 22 April 2024

APPLICATION SPECIFIC INTEGRATED CIRCUIT (ASIC) MARKET REPORT OVERVIEW

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global application specific integrated circuit market size was USD 15469.4  million in 2021 and market to touch USD 39526.21 million by 2032 at CAGR 8.9% during the forecast period. 

The Application-Specific Integrated Circuit (ASIC) market has seen dynamic growth, driven by increasing demand in diverse industries such as telecommunications, automotive, and healthcare. The trend towards greater integration and miniaturization, especially through System-on-Chip (SoC) designs, has been notable. Emerging technologies like artificial intelligence, machine learning, and 5G communication have spurred demand for specialized ASICs, while the cryptocurrency mining sector continues to rely heavily on ASICs, particularly for proof-of-work cryptocurrencies like Bitcoin.

Despite challenges such as high upfront costs and time-to-market concerns, the advantages of customization and enhanced performance make ASICs a preferred choice for specific applications. Additionally, there is a growing emphasis on environmental considerations within the ASIC market, with efforts to improve energy efficiency and reduce the carbon footprint of semiconductor manufacturing. As environmental concerns gain prominence across industries, including semiconductors, the ASIC market is also adapting. Efforts are underway to improve the energy efficiency of ASICs and reduce the environmental impact of semiconductor manufacturing processes.

COVID-19 Impact: Market Growth Restrained by Pandemic due to Supply Chain Disruptions

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The ASIC market, like the broader semiconductor industry, experienced disruptions in the global supply chain. Lockdowns, factory closures, and restrictions on movement affected the production and shipment of semiconductor components, including ASICs. This led to delays in manufacturing and delivery timelines for various applications. The pandemic prompted shifts in consumer behavior and priorities, impacting demand for specific ASIC applications. While sectors like automotive and consumer electronics faced temporary setbacks due to economic uncertainties and production disruptions, other areas, such as healthcare technology and communication infrastructure, saw increased demand for ASICs. The need for enhanced connectivity and the surge in remote work highlighted the importance of semiconductor solutions in supporting changing lifestyles.

The pandemic acted as a catalyst for digital transformation across industries. Companies expedited their adoption of technologies such as cloud computing, AI, and IoT, driving increased demand for ASICs designed to support these advanced applications. The surge in remote work and online activities emphasized the importance of robust connectivity. This led to investments in communication infrastructure, including 5G networks, which in turn increased demand for ASICs designed for telecommunications and networking applications.

LATEST TRENDS

"FinFET Technology in ASICs to Drive Market Growth"

FinFET (Fin Field-Effect Transistor) technology is becoming increasingly popular for ASIC design due to its improved performance, power efficiency, and scalability compared to traditional planar CMOS technology. FinFET enables the development of more complex and powerful ASICs for demanding applications. The growth of AI and ML applications in various industries, such as automotive, healthcare, and consumer electronics, is driving the demand for specialized ASICs designed for AI and ML workloads. These ASICs offer the performance and power efficiency required to handle complex AI and ML algorithms. Chiplet technology is gaining traction in the ASIC market, allowing for the integration of multiple smaller ASICs into a single package.

APPLICATION SPECIFIC INTEGRATED CIRCUIT (ASIC) MARKET SEGMENTATION

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• By Type

Based on type the global market can be categorized into full custom design ASIC, semi-custom design ASIC (standard cell basic ASIC and gate-based array), programmable ASIC.

Full Custom Design ASIC: Full custom design ASIC involves a bespoke approach, with each transistor and logic gate individually designed, providing the highest level of performance and energy efficiency tailored to a specific application.

Semi-Custom Design ASIC (Standard Cell Basic ASIC): Semi-custom ASICs, using standard cell libraries, strike a balance between customization and efficiency, offering predefined logic cells for faster design cycles while allowing customization of interconnections and peripheral components.

Semi-Custom Design ASIC (Gate-Based Array): Gate-based array ASICs offer flexibility through a grid of configurable logic gates, allowing designers to implement custom digital circuits within a predefined structure, providing a compromise between customization and design efficiency.

Programmable ASIC: Programmable ASICs combine the flexibility of programmable logic devices with the performance benefits of ASICs, allowing users to configure the chip's functionality through programming rather than fixed hardware, offering adaptability for various applications.

• By Application

Based on application the global market can be categorized into telecommunication, industrial, automotive, consumer electronics, security, & others.

Telecommunication: Telecommunication relies on advanced ASICs for applications like baseband processing, signal processing, and networking, enabling high-speed data transmission and efficient communication networks.

Industrial: In the industrial sector, ASICs are employed for control systems, sensor interfaces, and data processing, contributing to the automation, precision, and efficiency of manufacturing processes.

Automotive: ASICs play a crucial role in automotive applications, powering functionalities such as engine control units (ECUs), advanced driver-assistance systems (ADAS), and in-vehicle infotainment systems for enhanced safety and entertainment.

Consumer Electronics: Consumer electronics, including smartphones, laptops, and smart home devices, leverage ASICs for optimized performance, energy efficiency, and specific functionalities, enhancing user experience and device capabilities.

Security: In the security domain, ASICs are utilized for encryption, decryption, and secure data processing in applications such as cryptographic modules, secure communication devices, and access control systems.

Others: ASICs find applications in a diverse range of industries, including medical devices (e.g., imaging systems, diagnostic equipment), aerospace (e.g., avionics), and energy (e.g., power management), providing customized solutions for specific requirements in various sectors.

DRIVING FACTORS

"Performance Optimization and Miniaturization to Boost the Market"

One of the key driving factors in the global application specific integrated circuit market growth is performance optimization and miniaturization in urban areas. ASICs are designed for specific applications, allowing for optimization in terms of performance, power consumption, and speed. This customization leads to enhanced efficiency and functionality compared to general-purpose solutions. The trend towards smaller, more compact electronic devices necessitates highly integrated circuits. ASICs, especially those designed as System-on-Chip (SoC), contribute to the miniaturization of electronic components, making them suitable for portable devices and IoT applications. Industries such as telecommunications, automotive, healthcare, and consumer electronics require specialized solutions that meet unique performance requirements. ASICs provide tailored solutions for these diverse applications.

"Emergence of 5G and Security Requirements to Expand the Market"

Another driving factor in the global application specific integrated circuit market is the emergence of 5g technology and security requirements offered by these products. The rollout of 5G networks requires advanced and efficient processing capabilities, spurring demand for ASICs in telecommunications infrastructure. ASICs play a crucial role in enabling the high-speed and low-latency communication necessary for 5G. With the growing importance of data security, ASICs are utilized in cryptographic applications for encryption and decryption. These specialized chips enhance the security of communication networks, financial transactions, and sensitive data processing. ASICs are designed to be energy-efficient, making them suitable for applications where power consumption is a critical factor.

RESTRAINING FACTOR

"High Initial Cost and Risk of Obsolescence to Potentially Impede Market Growth"

One of the key restraining factors in the global application specific integrated circuit market is the high initial cost and risk of obsolescence of these products. ASICs involve substantial upfront costs for design and development, making them less suitable for applications with low production volumes. The initial investment can be a significant barrier for smaller companies or applications with limited budgets. Rapid advancements in semiconductor technology may lead to the risk of ASICs becoming obsolete sooner than expected. As technology evolves, newer, more efficient solutions may emerge, potentially reducing the lifespan of existing ASIC designs. The ASIC market, like the broader semiconductor industry, is susceptible to supply chain disruptions.

APPLICATION SPECIFIC INTEGRATED CIRCUIT (ASIC) MARKET REGIONAL INSIGHTS

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"Asia Pacific to Dominate the Market due to Presence of a Large Consumer Base"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

Asia-Pacific has emerged as the most dominant region in the global application specific integrated circuit market share due to several factors. Asia-Pacific, and particularly China, has emerged as a major player in the global semiconductor industry. China, in particular, has made significant investments in semiconductor manufacturing and technology development. Several leading semiconductor foundries and companies are based in countries like Taiwan, South Korea, and Japan. These regions have been at the forefront of semiconductor manufacturing, contributing to a substantial share of global ASIC production. The region has experienced rapid growth in research and development (R&D) activities related to ASIC design and semiconductor technologies. Academic institutions and research organizations in countries like Taiwan, South Korea, and China are contributing to advancements in ASIC architectures, design methodologies, and manufacturing processes.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The Application-Specific Integrated Circuit (ASIC) market is heavily influenced by key industry players that play a crucial role in steering market dynamics and shaping the preferences of businesses across various sectors. These influential players possess extensive expertise in ASIC design and manufacturing, offering clients easy access to a diverse range of customized integrated circuit solutions. Their robust global presence and recognition in the semiconductor industry contribute to heightened trust and collaboration, fostering the widespread adoption of ASICs. Furthermore, these industry leaders consistently allocate substantial resources to research and development, introducing innovative architectures, advanced semiconductor materials, and cutting-edge features in ASICs. This commitment addresses the evolving needs and preferences of businesses, leaving a profound impact on the competitive landscape and future direction of the ASIC market.

List of Market Players Profiled

• Global Unichip Corp (Taiwan)
• Intel Corporation (U.S.)
• Broadcom (U.S.)
• Ams OSRAM (Germany)
• Texas Instruments (U.S.)
• Honeywell (U.S.)
• Infineon Technologies (Germany)

INDUSTRIAL DEVELOPMENT

November 2023: Intel launches a new cloud-based ASIC design platform, Intel Agilex Design Platform, providing access to powerful design tools and enabling collaboration among design teams. This platform is designed to accelerate the development of custom ASICs for various applications.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.