FPGA Security Market - Forecasts from 2023 to 2028

The FPGA security market is estimated to grow at a CAGR of 8.34% during the forecast period.

A Field Programmable Gate Array (FPGA) belongs to the group of programmable hardware devices. It refers to a type of semiconductor device that contains a matrix of configurable logic blocks and is an integrated circuit that is mostly sold off the shelf. It gives customers the freedom to reprogram the hardware according to their specific requirements, which is a key differentiator of the product. It sets it apart from Application Specific Integrated Circuits (ASICs), specially manufactured for specific use cases. FPGAs have a RAM-based configuration which allows them to be reconfigured as many times as needed. This product finds applications in several industries, such as information technology, telecommunication, aerospace, defense, etc. Some of the major drivers for the growth of this market include the deployment of integrated circuits in the telecommunications industry and the encryption of FPGAs to increase security.

The surge in demand for FPGA Security by growing industries like telecommunications and the rise of cloud computing are positively impacting the market growth.

FPGA Security is needed in the telecommunications industry to ensure the need for secure communication. The telecommunications industry is growing globally due to multiple reasons, such as growing developments in communication infrastructure and increased investments in telecom by the major players of the market. New technologies like artificial intelligence and improved computing abilities are helping the growth of this sector. For instance, as per data from the Department of Telecommunications of the Government of India, the number of telecom subscribers in the country has risen from 1059.3 million in 2016 to 1200.8 million people in 2021. FPGAs have a variety of uses in the telecom industry, including data packet switching and packet processing.

Rapid growth in cloud computing and data centers is driving the market growth that has increased the need for data security. Programmable field arrays can be used to improve the security of data centers and secure the process of data transmission. Thus, this product has seen a considerable increase in demand from this sector. Key businesses in this market have seen an increase in income over the past few years as a result of such efforts. For instance, according to their yearly reports, Intel Corporation had an increase in revenue in their programmable solutions group of over 4.4% from 2020 to 2021. It produced segment revenues of roughly US$1.9 billion in 2021.

Vulnerability to security attacks is expected to restrain the industry's expansion.

A significant challenge faced by this industry relates to the vulnerability of FPGAs to security attacks due to hardware flaws. This can allow hackers to take over control of the chips and risk the theft of sensitive data. However, due to the programmability of FPGAs, technological innovations relating to security and encryption can be applied to these products to improve the security level and prevent any foreign attacks on the data stored in chips.

Market Developments:

• In April 2023, Rapid Silicon announced the introduction of a new AI-based tool called RapidGPT which is aimed at helping with code completion specifically for FPGAs. The tool aims to improve the process of FPGA designing, which is expected to help designers save time and increase the quality of their output.
• In March 2023, Intel launched its new FPGA product, the Agilex 7 FPGAs, which are claimed to be equipped with the fastest FPGA transceivers available. This product is designed to provide solutions to bandwidth-heavy operations such as data centers. It is said to provide the best performance compared to other available products in this segment.

The Asia-Pacific region is expected to hold a significant market share during the forecast period.

Asia Pacific is expected to constitute a significant market share, and similar trends are expected to be followed in the forecast period. This market share is owed to the presence of several semiconductor industries in the major economies of the region, such as China and India, as well as well-established electronics industries in countries like South Korea, China, and Japan. China and India constitute more than a quarter of the world’s population, and therefore there is a huge demand for consumer electronics in these countries. This demand is expected to continue rising as the population grows and the standards of living improve. holds the largest electronics production base in the world and also has one of the largest populations. Countries like Japan and South Korea are home to some of the biggest consumer electronics companies in the world, such as Samsung and Sony. Thus, there is also a huge demand for FPGAs in these countries. It is expected that North American and European markets will experience moderate growth too. The market for FPGAs in the United States is expected to surge in demand due to an established electronics base and improvements in telecom technologies, such as the introduction of 5G.

Market Segmentation:

BY CONFIGURATION

• Low-end FPGA
• Mid-range FPGA
• High-end FPGA

BY SIZE

• ≤28 nm
• 28-90 nm
• >90 nm

BY ARCHITECTURE

• SRAM-based FPGA
• Anti-fuse-based FPGA
• Flash-based FPGA

BY END-USER INDUSTRY

• IT & Telecommunication
• Aerospace & Defense
• Manufacturing
• 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
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Taiwan
• Others