Application Specific Integrated Circuit Market Size, Share & Trends Analysis Report By Product Type (Full Custom, Semi-custom, Programmable), By Application, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global application specific integrated circuit market size was estimated at USD 15.99 billion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 5.9% from 2023 to 2030. The market is poised to experience a surge in demand primarily driven by the increasing utilization of ASICs in consumer electronics, including smartphones, smartwatches, and tablets, among other devices. An application specific integrated circuit (ASIC) represents an integrated circuit meticulously designed to serve a particular application or purpose, facilitating the consolidation of all electronic components onto a single chip. By incorporating the functionalities of multiple smaller and medium-sized integrated circuits onto a solitary chip, these circuits enable the complete assimilation of the entire system, ensuring alignment with the system requirements. As a consequence, these integrated circuits find extensive application across diverse industries such as automotive, telecommunication, electrical & electronics, and medical, among other sectors.

The rapidly growing demand for smartphones and tablets is expected to drive market growth over the forecast period. According to GVR analysis, approximately 75% of the total mobile phone owners will own a smartphone by 2025. ASICs help in providing the high-bandwidth, smaller size & weight, low-cost, and long battery life requirements of next-generation smartphones. Also, with the advent of ‘smart’ devices, electrical products such as televisions, laptops, wearables, digital cameras, and gaming consoles offer various advanced technologies such as touchscreen displays, flat screens, and Bluetooth functions are generating a demand for a larger number of ICs. Furthermore, due to the constantly growing adoption of mechatronics across industrial and automotive applications, the demand for electronic components with ASICs has witnessed massive growth over some time.

ASICs were initially developed with a focus on their utilization in consumer electronics and telecommunication equipment. Over time, the scope of their application has expanded to encompass a broad range of sectors, including automotive emission control, personal digital assistants, sensors, industrial machinery, healthcare devices, and military & defense equipment, among others. The growing prevalence of ASICs in industrial applications, particularly in thermal controllers and 8-bit microcontrollers, has had a substantial impact on the market dynamics. The integration of ASIC chips has proven to be a transformative factor in various industries, as it replaces conventional components like solder joints and printed circuit board (PCB) traces with a single IC. This consolidation not only enhances efficiency but also minimizes the likelihood of failure, resulting in highly reliable industrial systems. Industries such as automotive, aerospace & defense, and military, which demand the utmost technological consistency, are increasingly adopting ASICs to mitigate the risks associated with electronic system failures commonly encountered in these domains. The strategic deployment of ASIC technology is poised to play a pivotal role in bolstering the performance and dependability of critical systems across these sectors.

On the other hand, factors such as the high cost of manufacturing customized circuits, circuit designing costs, and functional reliability issues are anticipated to hinder market growth over the years. However, with technological advancements such as the Internet of Things (IoT), blockchain, big data analytics, and machine learning, the unit cost for ASICs has been declining, which in turn led to a positive impact on the market across the globe. The abovementioned advancements are being extensively used in connected devices, data center facilities, and public clouds that allow organizational data to move faster across the IT network. Thus, organizations are incorporating these ICs to support the functioning of advanced technologies in devices, resulting in less operational cost. Also, the continuous evolution of the electronics industry is generating a constant need for improvement in ASIC designs to cater to users’ exact requirements.

COVID-19 Impact Analysis

The application specific integrated circuit (ASIC) market experienced notable ramifications amid the COVID-19 pandemic. The outbreak significantly disrupted global supply chains, which profoundly affected the production and distribution of ASICs. Numerous semiconductor manufacturers grappled with challenges in procuring essential raw materials, components, and equipment, resulting in production delays and escalated operational costs. Concurrently, the pandemic induced marked changes in consumer behavior, leading to divergent trends in the demand for ASICs across various industries. For instance, the heightened adoption of remote work and increased online activities caused a surge in demand for ASICs utilized in networking and communication equipment. Conversely, certain sectors, such as the automotive industry, may have witnessed reduced demand for ASICs due to constrained consumer spending during this period.

Product Type Insights

In 2022, the semi-custom ASIC segment exhibited a dominant market share, surpassing 49%, and is expected to continue its market leadership throughout the forecast period. This growth can be attributed to its comparatively lower complexity and extensive range of applications in comparison to the other segments. Manufacturers in the ASIC market predominantly offer three distinct types of ASICs: semi-custom ASIC, full-custom ASIC, and programmable ASIC. Within the semi-custom ASIC category, there are two sub-segments: cell-based ASIC and array-based ASIC.

Within the semi-custom ASIC segment, the cell-based ASIC sub-category held the largest share, accounting for more than 70% of the global revenue in 2022. This can be attributed to its digital-logic and electrical features, which encompass attributes like inductance and capacitance. Such features enable improved electrical performance and high component density. Additionally, cell-based ASICs offer versatility and can be utilized across various products, regardless of design complexity, owing to the integration of advanced static random-access memory and internet protocol cores, facilitating seamless system functionality.

The full custom ASIC segment is projected to achieve a CAGR of 4.8% during the forecast period. These ICs deliver enhanced speed and reliability, accompanied by intellectual property protection while consuming a lesser amount of electrical power. Designers benefit from the ability to customize logic cells, layouts, mechanical structures, and circuits and optimize memory cells on the IC, thereby reducing processing time and mitigating risks. However, the manufacturing time for full custom ASICs is comparatively longer, taking approximately eight weeks for a specific application, as opposed to semi-custom ASICs.

Application Insights

In 2022, the consumer electronics segment held a substantial global market share, accounting for over 35.33%. This vertical is poised to present lucrative growth prospects for all stakeholders within the value chain, primarily driven by the escalating utilization of application specific integrated circuits in smartphones, tablets, and laptops worldwide. ASICs offer many advantages, including low power consumption, IP security, compact size, and enhanced bandwidth, thus fostering widespread adoption in the consumer electronics industry. Furthermore, the rapid advancements in electronic devices have enabled heightened stability and energy efficiency, further fueling the growth of the ASIC market. Beyond the consumer electronics vertical, these ICs find extensive applications across various sectors, such as telecommunications, industrial, and healthcare.

The industrial segment of the market is expected to witness considerable growth over the forecast period. ASIC chips replace traditional components such as solder joints and PCB traces with one IC, which in turn helps reduce the chances of failure and offers reliable industrial systems. The increasing adoption of various components such as programmable timers, microcontrollers, and thermal controllers in industrial applications is propelling the market growth. Besides, numerous manufacturers in the market offer IC chips specifically designed for industrial usage. For instance, Custom Silicon Solutions, Inc., a semiconductor company offering custom "Mixed Signal" technology. The company’s CSS555C industrial ASIC is an improved version of its 555 timer. This CSS555C industrial ASIC draws 10 percent less power than other 555 timer devices.

Regional Insights

The Asia Pacific region has emerged as a dominant force in the global ASIC market, commanding a significant revenue share of over 48.0% in 2022. This remarkable growth can be attributed to several key factors propelling the demand for ASICs in the region. Firstly, there is a surging need for energy-efficient devices, driven by the region's rapid economic growth and increasing industrialization. Moreover, the proliferation of smartphones in the Asia Pacific region has contributed significantly to market expansion. The rising penetration of these devices, especially in developing economies like China, Japan, and India, has created a conducive environment for ASIC market growth. Additionally, factors such as the ongoing process of digitization, the increasing adoption of high-tech gadgets, advancements in automotive electronics, and a rising demand for miniaturization have collectively bolstered growth.

The presence of numerous semiconductor companies, including major players like Infineon Technologies, alongside key consumer electronics giants like LG Electronics and Samsung Electronics Co., Ltd., has further fueled the growth trajectory of the ASIC market in the region Furthermore, the Asia Pacific region is witnessing a technological transformation in the consumer electronics and automotive industries, with countries like India, China, South Korea, and Japan at the forefront of this revolution. These advancements have led to greater integration of ASICs in various systems, facilitated by innovations such as temperature sensors and power management solutions in smartphones, household appliances, wireless headphones, and speakers. As a result of these factors, the Asia Pacific ASIC market is poised for continued growth and expansion, solidifying its position as a pivotal contributor to the global ASIC industry.

North America is expected to grow at a CAGR of 5.8% during the forecast period. The growth is attributed to the significant presence of prominent players in the region, including Maxim Integrated Products Inc.; Qualcomm Inc.; Intel Corporation; and Texas Instruments Inc. is one of the primary factors for the growth within the region. In the current market scenario, the U.S. dominates the North American region. High development in consumer electronics products, healthcare monitoring systems, and electric & hybrid vehicles, among others can be seen in the U.S. Being early adopters of ASIC technology, North America is home to many ASIC manufacturers and solution providers.

Key Companies & Market Share Insights

Prominent players operating in the market comprise reputable entities that are proactively emphasizing research and development initiatives to bolster their market presence. For instance, Meta is slated to utilize custom ASIC chips supplied by Broadcom for the development of its metaverse hardware, with an anticipated timeframe in June 2022. These Application Specific Integrated Circuit (ASIC) chips are forecasted to contribute significantly to Broadcom's revenue, with an estimated range of USD 2 billion to USD 2.5 billion for the fiscal year 2022.Some prominent players in the global application specific integrated circuit market include:

• Broadcom Inc.

• STMicroelectronics

• Faraday Technology Corporation

• FUJITSU

• Infineon Technologies AG

• Comport Data

• Intel Corporation

• ASIX Electronics

• OmniVision Technologies, Inc.

• Semiconductor Components Industries, LLC

• Seiko Epson Corporation

• DWIN Technology

• Socionext America Inc.

• Tekmos Inc.

Application Specific Integrated Circuit Market Report Scope

Global Application Specific Integrated Circuit Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and analyzes the latest industry trends in each sub-segment from 2017 to 2030. For this study, Grand View Research has segmented the global application specific integrated circuit market report based on product type, application, and region:

• Product Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Full Custom ASIC

  • Semi-custom ASIC

    • Cell-based

    • Array-based

  • Programmable ASIC

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Telecommunication

  • Industrial

  • Automotive

  • Consumer Electronics

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Singapore

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa