Field Programmable Gate Array (FPGA) Market - Forecasts from 2023 to 2028

The field-programmable gate array (FPGA) market is predicted to grow at a CAGR of 8.59% from US$8.685 billion in 2021 to US$15.460 billion by 2028.

The field-programmable gate array (FPGA) market is predicted to grow due to the widespread use of programmed gate arrays across industries. Additionally, the development of complicated, mission-critical systems heavily uses the field-programmable gate array market in modern embedded computing. Further, the industry is also growing due to more cloud users using FPGA as Infrastructure as a Service. Many cloud service providers employ programmable gateway arrays to accelerate service-oriented processes, including network encoding, deep learning, high volume of activities, and video conversion. The market is also influenced by growing data center investment.

FPGAs accelerate development, are versatile, and offer low one-time engineering costs. As a result, they have a major potential to reduce prices and boost security levels. However, the growth of the field-programmable gate array market is hampered by the challenging design process.

The field-programmable gate array (FPGA) market is driven by rising demand for data centres for IoT and 5G networks.

Data centers are crucial for developing the Internet of Things because they analyze data from millions of gadgets and sensors to perform sophisticated autonomous activities. As a result, the use of field-programmable gate arrays in data centers to offload and expedite particular functions is growing. Further, to enhance the computational capacity of data centers, a significant growth in demand for data centers due to an increase in the incorporation of more lots in different areas is anticipated to drive demand for FPGAs. For instance, the number of short-range IoT-connected devices has increased from 10.75K in 2020 to 13.94K in 2022, and the connections of wide-area IoT increased from 1.71K in 2020 to 2.17K in 2022 as per the report by Ericsson. Therefore, IoT demand is anticipated to expand even more throughout the projection period, signaling an increase in the need for semiconductors and other components. By 2025, SEMI projects that the semiconductor and sensor industry will be worth USD 114.2 billion for Internet of Things devices.

Further, the global FPGA market is also anticipated to be driven by increased demand for optimization in big data analytics over the projected period. In addition, leading search engines like Google and businesses like Amazon and Walmart are concentrating on parallel operation execution for real-time performance. As a result, they are steadily growing their reliance on FPGAs to fulfill commercial commitments.

Market Developments:

• Xilinx Inc. launched the Zynq UltraScale+ RFSOC product line, which focuses on the SG wireless RF signal chain and is discarded in distant radio heads for huge MIMO, baseband, and wireless broadband systems.
• Lattice Semiconductor is an FPGA manufacturer that focuses on low-power, small-footprint solutions for the telecom industry. In 2020, the company launched the CrossLink-NX FPGA, designed for high-bandwidth video and image processing. The CrossLink-NX family is the first family of FPGAs implemented on the Lattice Nexus Platform, which is optimized for low-power operation in a small form factor.
• In 2020, Microchip launched the PolarFire FPGA, designed for low-power, high-bandwidth applications such as 5G networks and data centers. These belong to the company's fifth-generation family of non-volatile FPGA devices, built on state-of-the-art 28 nm non-volatile process technology.

Based on the end-user industry, the telecom segment is expected to witness robust growth.

This segment is anticipated to witness promising growth throughout the forecast period due to the increasing demand for high-speed data processing and transmission. With the growth of data-intensive applications such as 5G networks, cloud computing, and artificial intelligence (AI), there is a need for faster and more efficient data processing and transmission. FPGAs are customized to perform specific functions, such as data encryption and compression, in a highly efficient manner. Therefore, they offer significant advantages over traditional application-specific integrated circuits (ASICs), fixed-function chips designed for a specific application.

North America accounted for a major share of the global field-programmable gate array (FPGA) market.

The field-programmable gate array (FPGA) market has been segmented by geography into North America, South America, Europe, Middle East and Africa, and Asia Pacific.

The USA is home to major FPGA manufacturers, including Xilinx (now part of AMD) and Intel (Altera), driving innovation and competition in the market. For instance, SambaNova Systems, a startup focused on developing FPGA-based AI hardware and software solutions, raised $250 million in a funding round led by BlackRock in February 2021. These investments indicate the growing interest and investment in FPGA technologies for emerging applications such as AI/ML and data center acceleration.

Additionally, government initiatives and investments in the USA, such as funding for research and development, innovation programs, and partnerships with technology companies, are supporting the growth of the FPGA market. For instance, the U.S. Department of Defense has been investing in FPGA-based research and development projects to advance military capabilities. Moreover, the U.S. government's push for domestic semiconductor manufacturing and supply chain resilience has further fueled the growth of the FPGA market in the USA.

Market Segmentation:

BY ARCHITECTURE

• SRAM
• Flash
• Antifuse

BY END-USER INDUSTRY

• Automotive
• Manufacturing
• Telecom
• Aerospace and Defense
• Consumer Electronics
• Healthcare
• Others

BY GEOGRAPHY

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• United Arab Emirates
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Indonesia
• Thailand
• Taiwan
• Others