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, 2020 - 2027

Report Overview

The global application specific integrated circuit market size to be valued at USD 21.0 billion by 2027 and is expected to grow at a compound annual growth rate (CAGR) of 5.2% during the forecast period. The market is expected to witness an increase in demand at a global level owing to the growing use of application-specific integrated circuits (ASICs) in consumer electronics such as smartphones, smartwatches, and tablets. An ASIC is an integrated circuit specifically created for a specific application or purpose. These Integrated Circuits (ICs) are used to integrate all the electronic components on one chip. Also, these circuits can integrate the functions of several small and medium-sized integrated circuits that separately undertake some functions on a single chip, thereby assimilating the whole system on a single chip to recognize the system requirements. These ICs are used in various industries such as automotive, telecommunication, electrical and electronics, and medical.

The rapidly growing demand for smartphones and tablets is expected to drive the market for application-specific integrated circuits over the forecast period. According to GVR analysis, approximately 75.0% of the total mobile phone owners will own a smartphone by 2025. Application-specific integrated circuits help in providing high-bandwidth, smaller size and weight, low-cost, and long battery life requirements in next-generation smartphones. Also, with the advent of smart devices and electrical products such as televisions, digital cameras, laptops, wearables, and gaming consoles, offering advanced technologies such as flat screens, touch screen monitors and displays, and Bluetooth functions, demand for ICs is increasing. Furthermore, due to the constantly increasing adoption of mechatronics across industrial and automotive applications, the demand for electronic components with ASICs has witnessed massive growth over the period of time.

Application-specific integrated circuits were initially designed for their use in consumer electronics and telecommunication equipment. These ICs are now being used in automotive emission control, personal digital assistants, sensors, industrial, healthcare, and military and defense equipment. The significant use of application-specific integrated circuits in industrial applications including Thermal Controller and 8 Bit Microcontrollers are having a considerable impact on the market for an application-specific integrated circuit. Integration of these chips replaces traditional components including solder joints and Printed Circuit Board (PCB) traces with one IC, which helps in reducing the chances of failure and provides highly reliable industrial systems. Additionally, industries such as automotive, aerospace, defense, and military, which need highly consistent technological systems are using these chips to avoid the numerous electronic system failure instances in these industries.

On the other hand, factors such as the high cost of manufacturing customized circuits, circuit designing cost, and functional reliability issues are anticipated to hinder the growth of the market for an application-specific integrated circuits over the years. However, with technological advancements such as big data analytics, Internet of Things (IoT), blockchain, and machine learning, the unit cost for application-specific integrated circuits has been declining, which, in turn, is leading to a positive impact on the market across the globe. The above-mentioned advancements are being extensively used in connected devices, data center facilities, and public clouds that allow the organizational data to move faster across the IT network. Thus, the 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 application-specific integrated circuit designs to cater to users’ exact requirements.

Application Specific Integrated Circuit Market Trends

Application-specific integrated circuits are widely being employed in a variety of aviation applications, including cockpit lighting that accommodates for daylight and night vision, internal data management protocols, and high accuracy, high-speed accelerometer processing for gyroscopic guidance.

Besides addressing the shortcomings of field programmable gate array and traditional ASIC, structured ASIC provides access to technologically advanced nodes, which offer internet protocols and performance portfolios essential for complex aerospace processes. Wide application in the aerospace industry along with increasing technological advancements is likely to fuel the market growth.

Furthermore, the adoption of cryptocurrency has led to the rising demand for mining activities. ASICs are used for efficient cryptocurrency mining activities such as bitcoin mining. Moreover, Industry 4.0 is anticipated to fuel market growth in the coming years. However, the high cost of ASIC installation is expected to act as a restraint on the advancement.

Product Type Insights

The semi-custom ASIC segment held the largest market share of 48.0% in 2019 and is also anticipated to dominate the market for application-specific integrated circuits over the forecast period. The growth is attributed to its low complexity and a wide scope of applications as compared to other segments. The semi-custom ASIC is further bifurcated into two sub-segments, including cell-based and array-based. Besides, cell-based ASIC held the largest share of approximately 70.0% in 2019, owing to its digital-logic and electrical features such as inductance and capacitance. These features offer improved electrical performance and a high density of the component. Moreover, the cell-based ASICs can be used in any product, irrespective of the design complexity as it has advanced integrated static random access memory and internet protocol cores, which helps in the smooth functioning of the system.

The full-custom ASIC segment is expected to register considerable growth by 2027. These ICs provide faster and more reliable performance with intellectual property protection using a lesser amount of electrical power. Besides, the full custom ASIC allows designers to customize logic cells, mechanical structures, layouts, and circuits, and optimize memory cells, on an IC, which helps to decrease processing time and risks. However, due to its complex design, the manufacturing time for these application-specific integrated circuits is eight weeks for a specific application, which is more than semi-custom ASICs.

Application Insights

In 2019, the consumer electronics segment accounted for more than 34.0% of the global market share. The consumer electronics vertical is anticipated to offer significant growth opportunities for all the players involved in the value chain on the back of the increasing use of ASICs within phones, tablets, and laptops across the globe. These ASICs offer various advantages including low power consumption, IP security, small size, and higher bandwidth, leading to increased adoption of the ICs in the consumer electronics industry. Moreover, the rapid advancement of electronic devices is enabling a stable performance and energy efficiency, propelling the application-specific integrated circuit market growth. Other than the consumer electronics vertical, these ICs are used in multiple verticals such as telecommunication, industrial, and healthcare.

The industrial segment of the ASIC market is expected to witness considerable growth over the forecast period. Application-specific integrated circuits replace traditional components such as solder joints and PCB traces with one IC, which in turn helps to reduce the chances of failure and offer reliable industrial systems. Furthermore, the increasing adoption of various components such as microcontrollers, programmable timers, and thermal controllers in industrial applications is propelling the market growth. Besides, there are numerous manufacturers in the market for application-specific integrated circuits offering IC chips specifically designed for industrial usage. For instance, Custom Silicon Solutions, Inc., a semiconductor company offers custom "Mixed-Signal" technology. The company’s CSS555C industrial application-specific integrated circuit is an improved version of its 555 timers. This CSS555C industrial ASIC draws 10.0% less power than other 555 timer devices.

Regional Insights

North America held a market share of more than 20.0% in 2019. 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. In the current industry scenario, the U.S. dominates the region. High development in consumer electronics products, healthcare monitoring systems, and electric and hybrid vehicles can be seen in the U.S. Being early adopters of the ASIC technology, North America is home to a large number of application-specific integrated circuit manufacturers and solution providers.

Asia Pacific is anticipated to emerge as the fastest-growing region over the forecast period. The growth is attributed to the rapidly increasing demand for energy-efficient devices along with the rising penetration of smartphones in the region. Developing economies such as China, Japan, and India are also supporting market growth due to various factors such as growing digitization, growing penetration of high-tech gadgets, advancement of automotive electronics, and increased need for miniaturization. Moreover, the presence of a large number of semiconductor companies in the region, such as Infineon technologies along with key consumer electronics companies such as LG Electronics and Samsung Electronics Co, Ltd. is propelling the industry growth.

Moreover, the evolution in technological transformation in consumer electronics and automotive industries in countries such as India, China, South Korea, and Japan is anticipated to drive the market for application-specific integrated circuits in the region. Technological advancements such as temperature sensors and power management in devices including smartphones, household appliances, wireless headphones, and speakers are increasing the incorporation of ASICs in the systems.

Moreover, the COVID-19 pandemic which recently spread across Asia Pacific countries, especially China, has highly impacted the growth of the regional market. Other than China there are various other countries in the region that are major contributors to the market including Taiwan, Singapore, and South Korea, and have also been affected due to this pandemic. However, considering the fact that China is coming close to its recovery phase, it is anticipated the impact of this pandemic on the growth of China's market would be low compared to the other countries such as U.S., Germany, Italy, and Spain.

Key Companies & Market Share Insights

Application-specific integrated circuit providers are focusing on research and development, which in turn would help increase their presence in the market. For instance, in March 2019, Infineon Technologies AG announced to launch XDPE132G5C, a 16-phase digital PWM multiphase controller. The launch was intended to expand its high current system chipset solutions product portfolio. The new XDPE132G5C will allow the current of 500 to 1000 A and above for next-generation FPGA, CPUs, ASICs, and GPUs used in 5G datacom applications and artificial intelligence (AI) servers. 

Recent Developments

• In May 2022, Infineon and pmdtechnologies collaborated to create a 3D depth-sensing solution for Magic Leap’s to-be-launched AR device, the Magic Leap 2 that enables enhanced cutting-edge medical and industrial applications

• In May 2022, onsemi introduced a trio of USB Power Delivery (PD) design products. The new drivers and controllers integrate novel features that significantly lower the material content of high-efficiency DC/AC power supplies, particularly for load ranges greater than 100W

• In May 2022, OMNIVISION partnered with Valens Semiconductor to develop a MIPI A-PHY standard-compliant camera solution, which is expected to find wide-scale applications in the automobile industry

• In February 2022, Intel Corporation confirmed a formal agreement regarding the acquisition of Tower Semiconductor, a notable foundry concerning with analog semiconductor offerings. The purchase promotes Intel's IDM 2.0 strategy by expanding the company's production capacity, worldwide footprint, and technology portfolio to generate substantial industry growth

Some of the prominent players in the application-specific integrated circuits market include:

• Infineon Technologies AG

• Semiconductor Components Industries, LLC

• OmniVision Technologies

• Tekmos Inc.

• Seiko Epson Corporation

• Socionext America Inc.

• Intel Corporation

Application Specific Integrated Circuit Market Report Scope

Global Application Specific Integrated Circuit Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global application specific integrated circuit market report on the basis of product type, application, and region.

• Product Type Outlook (Revenue, USD Million, 2016 - 2027)

  • Full Custom ASIC

  • Semi-Custom ASIC

    • Cell Based

    • Array Based

  • Programmable ASIC

• Application Outlook (Revenue, USD Million, 2016 - 2027)

  • Telecommunication

  • Industrial

  • Automotive

  • Consumer Electronics

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • South Korea

    • Singapore

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa