Integrated Circuits Market Report 2025

This Integrated Circuits market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The integrated circuits market size has grown rapidly in recent years. It will grow from $401.81 billion in 2024 to $446.8 billion in 2025 at a compound annual growth rate (CAGR) of 11.2%. The growth in the historic period can be attributed to economic conditions, regulatory environment, demographics, competitive landscape.

The integrated circuits market size is expected to see rapid growth in the next few years. It will grow to $661.12 billion in 2029 at a compound annual growth rate (CAGR) of 10.3%. The growth in the forecast period can be attributed to customer expectations, climate change and natural disasters, esg (environmental, social, and governance) factors, health and wellness trends, insurance distribution channels, remote work and digital operations. Major trends in the forecast period include technology adoption, insurtech integration, data analytics and ai, customer-centric focus, product diversification, partnerships and alliances.

The growing adoption of the Internet of Things (IoT) is anticipated to propel the integrated circuits (ICs) market during the forecast period. ICs enable the sensing, understanding, and transmission of intelligent data. The IoT is expected to drive the growth of the integrated circuit market due to the advantages of using analog ICs in a wide variety of real-time connected devices and applications. Analog ICs are known for their efficient power consumption and signal processing capabilities, which are essential for creating an automated device ecosystem. For example, in August 2022, a report from the Health Sector Cybersecurity Coordination Center (HC3), a division of the U.S. Department of Health and Human Services' Cybersecurity Program, stated that around 7 billion devices were connected via IoT in 2022, with an estimated 20 billion more devices expected to be added by 2025. As the adoption of IoT devices rises, the demand for ICs is expected to increase, driving the growth of the integrated circuits market.

The forthcoming growth of the integrated circuits market is expected to be substantially influenced by the surging penetration of smartphones. Smartphone penetration signifies the monitoring of mobile phone usage, playing a pivotal role in the integrated circuits and other electrical component sectors. Integrated circuits are indispensable in smartphones, enabling vital functions such as data processing, application operation, and device management. According to Uswitch Limited's data from February 2023, the UK witnessed a 3.8% upsurge in mobile connections, reaching 71.8 million connections in 2022 compared to the preceding year. Forecasts suggest that by 2025, the UK's population will expand to 68.3 million, with an estimated 65 million individuals, accounting for 95% of the populace, owning a smartphone. This escalating smartphone penetration is a significant driver propelling the growth of the integrated circuits market.

The proliferation of next-generation mobile networks like 4G and 5G necessitates the installation of new infrastructure, driving demand for various types of chipsets in the integrated circuits market. Radio frequency integrated circuits, system-on-chips, application-specific integrated circuits, cellular integrated circuits, and millimeter-wave integrated circuits are extensively used in 5G infrastructure development, amplifying the need for integrated circuits. The deployment of 5G, serving as the primary demand catalyst, has significantly increased semiconductor revenue for premium smartphones. Specifically, revenue for semiconductors in premium smartphones surged from 15.46 billion in 2021 to 18.73 billion in 2022, attributed to the demand spurred by 5G infrastructure.

Key players within the integrated circuits market are dedicated to innovating products to cater to customer needs, exemplified by the development of PCB-less pressure sensor integrated circuits (IC) MLX90824. The MLX90824 serves as an integrated circuit designed for the latest engine designs and their operational conditions. Melexis, a Belgium-based supplier of micro-electronic semiconductor solutions, including integrated circuits, introduced the MLX90824 in November 2022. This sensor-integrated circuit comprises a microelectromechanical system (MEMS pressure sensor element), an interface chip (CMOS technology), and passive components. Engineered with a smart package and die assembly concept, the MLX90824 ensures high output stability over time, even in rigorous automotive temperature and stress conditions.

In February 2022, Advanced Micro Devices Inc., a US-based semiconductor company, completed the undisclosed acquisition of Xilinx Inc. With this strategic move, Advanced Micro Devices Inc. aims to broaden its range of central processing units (CPUs), graphics processing units (GPUs), and field programmable gate arrays (FPGAs) to deliver high-performance and adaptive computing solutions. Xilinx Inc., another US-based semiconductor company, specializes in providing integrated circuits.

An integrated circuit, often referred to as a microchip, serves as a versatile component in electronics, performing functions such as amplification, oscillation, timing, and memory storage. These circuits are made up of tiny wafers that can house hundreds to millions of individual components, including transistors, resistors, and capacitors. Integrated circuits find applications in various industries, including automotive, telecommunications, aerospace and defense, and consumer electronics.

Integrated circuits come in different types, primarily categorized as general-purpose ICs and application-specific ICs. Application-specific integrated circuits (ASICs) are tailored to serve specific functions or applications, offering customized solutions for particular tasks. The various product categories within integrated circuits include digital ICs, analog ICs, and mixed-signal ICs, each catering to diverse sectors such as automotive, industrial, consumer electronics, IT and telecommunications, healthcare, aerospace and defense, and other specialized applications. Integrated circuits play a pivotal role in powering these industries and enabling technological advancements.

The integrated circuits market research report is one of a series of new reports that provides integrated circuits market statistics, including integrated circuits industry global market size, regional shares, competitors with a integrated circuits market share, detailed integrated circuits market segments, market trends and opportunities, and any further data you may need to thrive in the integrated circuits industry. This integrated circuits market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

Major companies operating in the integrated circuits market include Intel Corporation, Texas Instruments, Analog Devices, STMicroelectronics, NXP semiconductors, ON Semiconductor, Micron, Toshiba, Broadcom, Qualcomm, Maxim Integrated, Intersil Corporation, Cypress, Microchip, Integrated Device Technology, Omron, Advanced Electronic Components & Solution, Epson, Diodes, Infineon, New Japan Radio Co. Ltd., Boeing, Atmel Corporation, Nippon Electric Company, Samsung, Taiwan Semiconductor, SK Hynix, Nvidia, Renesas Electronics Corporation, MediaTek Inc., Xilinx Inc., Cypress Semiconductor Corporation, Advanced Micro Devices Inc., Marvell Technology Group Ltd., Silicon Laboratories Inc., Microchip Technology Inc., Cirrus Logic Inc., Dialog Semiconductor PLC, Semtech Corporation, Lattice Semiconductor Corporation, Monolithic Power Systems Inc., Power Integrations Inc.

Asia-Pacific was the largest region in the integrated circuits market in 2024. North America was the second-largest region in the integrated circuits market. The regions covered in the integrated circuits market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the integrated circuits market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The integrated circuits market consists of sales of analog integrated circuits, digital integrated circuits, mixed-signal integrated circuits, and other integrated circuits. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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