Application Specific Integrated Circuit Global Market Report 2024

The application specific integrated circuit market size has grown strongly in recent years. It will grow from $16.42 billion in 2023 to $17.62 billion in 2024 at a compound annual growth rate (CAGR) of 7.3%. The observed growth in the historic period in the field of Application-Specific Integrated Circuits (ASICs) can be attributed to several factors. These include the pursuit of cost efficiency and performance improvement, the increasing complexity of applications requiring specialized solutions, market expansion in the electronics and communication sectors, shrinking design cycles that demand faster development, and the growing integration of ASICs in consumer electronics. These factors collectively contributed to the increased adoption and growth of ASICs in various industries during the historic period.

The application specific integrated circuit market size is expected to see strong growth in the next few years. It will grow to $23.34 billion in 2028 at a compound annual growth rate (CAGR) of 7.3%. The anticipated growth in the forecast period for Application-Specific Integrated Circuits (ASICs) can be attributed to several factors. These include the rise in Internet of Things (IoT) devices and the adoption of edge computing, the evolution of automotive electronics, the growing demand for energy-efficient solutions, and the increased complexity in semiconductor design. Additionally, collaborations and partnerships within the industry are expected to contribute to the overall growth. Major trends in the forecast period include the emergence of 5G technology, a focus on rapid prototyping and time-to-market strategies, addressing security concerns and providing solutions, advancements in process technologies, and an increasing demand for customized ASIC solutions.

The burgeoning adoption of cryptocurrencies is poised to be a significant driver behind the expansion of the application-specific integrated circuit (ASIC) market. Cryptocurrencies, employing encryption methods, function as digital currencies and utilize encryption technology, relying on ASIC devices for their mining operations. The increased adoption of cryptocurrencies significantly amplifies the ASIC market, as these devices are pivotal in performing the heavy and sophisticated computations required for mining. In 2021, as per the International Monetary Fund, the cryptocurrency market value surged nearly threefold, hitting a record high of $2.5 trillion. This rapid growth underscores the pivotal role of cryptocurrency adoption in fueling the expansion of the application-specific integrated circuit market.

The escalating demand for smartphones is anticipated to act as a key catalyst propelling the growth of the application-specific integrated circuit market. Smartphones, multifunctional electronic devices amalgamating mobile phone and personal computer capabilities, heavily rely on ASICs to deliver top-notch performance, energy efficiency, and specialized functionalities. According to a report by Cybercrew in March 2023, smartphone usage in UK households soared to 91.43% in 2021, projected to reach 93.8% by 2026. This surge in smartphone penetration highlights the increasing reliance on these devices, consequently driving the demand for application-specific integrated circuits essential for their optimal functionality.

Technological advancements stand out as a pivotal trend driving the surge in the application-specific integrated circuit market. Notably, major industry players are dedicated to innovating and developing cutting-edge technologies to fortify their market positions. For example, in February 2023, Fortinet, a US-based cybersecurity products manufacturer, unveiled FortiSP5, a groundbreaking advancement in ASIC technology. FortiSP5 represents a significant leap forward in securing distributed network edges, delivering substantial gains in secure computing power compared to traditional CPUs and network ASICs. It offers enhanced cost-effectiveness, lower power consumption, and the capacity to establish secure infrastructure across various domains such as branches, campuses, 5G, edge computing, and operational technologies. Additionally, it boasts 32 times faster encryption capabilities, fortifying sensitive data protection and securing virtual private networks, among other critical benefits. This innovative stride underscores the ongoing pursuit of cutting-edge advancements driving the application-specific integrated circuit market's growth trajectory.

Leading companies within the application-specific integrated circuit (ASIC) market are prioritizing the development of innovative products, such as buck regulators, to secure a competitive advantage. Buck regulators, recognized as step-down converters, specialize in transforming input voltage to lower output voltage in DC-to-DC conversion. For instance, in September 2020, Infineon Technologies AG, a Germany-based semiconductor manufacturer, unveiled the OptiMOS 5 IPOL buck regulators. These regulators boast VR14-compliant SVID standards and I²C/PMBus digital interfaces tailored for network ASICs/FPGAs, Intel/AMD server CPUs, and applications in server, storage, telecom, datacom, and distributed power systems. The OptiMOS IPOL single-voltage synchronous buck regulator TDA38640 offers support for output currents of up to 40 A and 25 A, respectively, alongside simplifying design development. Infineon's proprietary fast constant on-time (COT) PWM engine ensures industry-leading transient performance, marking a significant stride in delivering enhanced capabilities to the market.

In March 2021, Qualcomm Incorporated, a US-based company specializing in wireless technology-related semiconductors, software, and services, acquired NuVia Inc. for $1.4 billion. This acquisition serves to fortify Qualcomm's position as a technology frontrunner across Windows, Android, and Chrome ecosystems, while bolstering its CPU roadmap. The collaboration is poised to facilitate the creation of a new category of industry-standard high-performance computing systems. NuVia Inc., based in the US, specializes in the design and production of application-specific integrated circuits and memory compilers, aligning its expertise with Qualcomm's strategic vision for future advancements in computing systems.

Major companies operating in the application specific integrated circuit market report are Infineon Technologies AG, Semiconductor Components Industries LLC, OmniVision Technologies Inc., Tekmos Inc., Seiko Epson Corporation, Socionext America Inc., Intel Corporation, Texas Instruments Incorporated, STMicroelectronics N.V., Qualcomm, Onsemi, Maxim Integrated, Renesas Electronics Corporation, Broadcom Inc., Comport Data Inc., Fujitsu Limited, NXP Semiconductors N.V, Faraday Technology Corporation, Comport Data, Micron Technology, Intel Corporation, ASIX Electronics, Renesas Electronics Corporation, IC’Alps, Marvell Technology Group Ltd., Samsung Electronics, LG Electronics, Honeywell International Inc., eSilicon, Cypress Semiconductor Corporation.

North America was the largest region in the application specific integrated circuit market in 2023. Asia-Pacific is expected to be the fastest-growing region in the application specific integrated circuit market report during the forecast period. The regions covered in the application specific integrated circuit market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the application specific integrated circuit market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main types of Application-Specific Integrated Circuits include Full Custom ASICs, Semi-Custom ASICs, and Programmable ASICs. A Full Custom ASIC incorporates fully customized logic cells and all personalized mask layers. Various applications for ASICs span wireless communication, inferencing applications, acceleration and storage, video and broadcast, process and quality control, security and surveillance, and electrical distribution. These applications find use across industries such as telecommunications, industrial, media and entertainment, automotive, healthcare, aerospace, consumer electronics, and others.

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

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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