Application Specific Integrated Circuit (ASIC) Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Application Specific Integrated Circuit (ASIC) Market is Segmented By Type (Full-Custom ASIC, Semi-Custom ASIC, Programmable ASIC), By Application (Wireless Communication, Inferencing Application, Acceleration and Storage, Process and Quality Control, Security and Surveillance, Others), By End-User (IT and Telecommunication, Automotive, Industrial, Consumer Electronics, Others), and By Region (North America, Europe, South America, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030

Application Specific Integrated Circuit (ASIC) Market Size

Global Application-Specific Integrated Circuit (ASIC) Market reached US$ 15.7 billion in 2022 and is expected to reach US$ 34.5 billion by 2030, growing with a CAGR of 8.3% during the forecast period 2023-2030.

Growing demand for passenger cars and commercial vehicles, as well as the rising trend of electrification and mechanisation in the automotive industry, are driving the global application-specific integrated circuits market growth. The rising demand for smart devices has also played an important part in the demand for next-generation smartphones across the globe, driving market growth.

During the forecast period 2023-2030, the consumer electronics sector is predicted to develop at the fastest CAGR in the global application-specific integrated circuit market. At a virtual event themed 'Featuring You,' OPPO announced the region-wide release of its fresh, first-ever, all-5G Reno5 series, which consists of the Reno5 Pro 5G, Reno5 5G and Reno5 Z smartphones, in March 2021. Such product improvements open up new opportunities for global application-specific integrated circuits market.

Application Specific Integrated Circuit (ASIC) Market Summary

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Application Specific Integrated Circuit (ASIC) Market Dynamics

Rising Demand for Integrated Circuits in Automotive

The rapid growth of new energy vehicles (NEVs) in the domestic and international markets, as well as the increasing need for analogue chips used in automotive electronics, are driving the global ASIC market upward. According to the China Association of Automobile Manufacturers (CAAM), China's new energy vehicle sales in April 2022 will total 299,000 units, with 280,000 electric passenger vehicles and 19,000 commercial electric vehicles.

The growth of the automotive sector is increasing the demand for integrated circuits, encouraging IC makers to expand their production facilities and build innovative solutions. For example, analogue IC foundry GTA Semiconductor began its capacity expansion project in the Shanghai Pilot Free Trade Zone's Lingang Special Area in August 2022. It intends to establish additional production lines for automotive chips.

Rise in Demand for Communication Devices

The emergence of numerous technologies, such as smartphones, tablets and various cloud-based applications, has fueled a constant increase in demand for quicker and more pervasive personal mobile communication systems in recent years. As a result, a growing number of wireless base stations (BTS) have been introduced, serving as connection points between mobile terminals and the main wired network.

As expenditures in 5G increase, so does the number of 5G base stations. According to the Ministry of Industry and Information Technology (MIIT), China plans to have 2 million 5G base stations installed by the end of 2022 in order to extend the country's next-generation mobile network. The increasing 5G penetration and demand for communication devices are likely to drive the growth of global application-specific integrated circuit market.

High Production Costs and Complex Design

ASIC design and production have high upfront expenses, which include design verification, prototype and fabrication. The costs of developing ASICs can be significant, especially for sophisticated designs or low-volume production. These high costs serve as a barrier to entry for smaller enterprises or startups that may lack the financial means to engage in ASIC development, hence limiting market competition.

The complexity of ASIC design is increasing as applications demand increasingly advanced functionalities and integration. Designing ASICs that have higher transistor density, advanced structures and power management capabilities is difficult. The design process necessitates specialised skills, expertise and tools, which might be an obstacle for businesses without these resources. Complex designs can increase the likelihood of faults or design problems, which can result in costly re-spins or delays.

Application Specific Integrated Circuit (ASIC) Market Segment Analysis

The global application specific integrated circuit (ASIC) market is segmented based on type, application, end-user and region.

Increasing Penetration of Consumer Electronics

The consumer electronics will account for around 20.2% of the global application-specific integrated circuit (ASIC) market during the forecast period. With increasing demand for innovative consumer electronics and widespread acceptance of smartphones in the entertainment and gaming sectors, the industry is expected to grow at a rapid pace during the forecast period.

The 5G technology is predicted to be one of the primary drivers allowing OEMs to increase their market presence and so stimulate growth in the future. According to an Ericsson analysis, global 5G subscriptions are predicted to reach 3.5 billion by 2026, with global demand and investment in technology and infrastructure expected to increase as well. 

Source: DataM Intelligence Analysis (2023)

Application Specific Integrated Circuit (ASIC) Market Geographical Share

Price Drop and Growing Demand for Smartphones in Asia-Pacific

Asia-Pacific has witnessed significant growth and popularity covering more than 1/3rd share of global application-specific integrated circuit (ASIC) market in 2022. Two main factors driving consumer electronics market growth are the increasing number of low-cost smartphone devices and lowering service plan costs. According to the Ministry of Industry and Information Technology, in 2021, China would have approximately 116 mobile phone subscriptions per one hundred citizens.

Furthermore, The Mobile Economy Asia-Pacific 2021, released by The Mobile Economy Asia-Pacific 2021, states that by the end of 2020, over 60% of the region's population would have enrolled to mobile services. By 2025, about 200 million new members would have joined, bringing the total number of users to 1.8 billion (62% of the region's population). South Asia is expected to account for the majority of the growth, with India accounting for more than half of new customers by 2025.

Source: DataM Intelligence Analysis (2023)

Application Specific Integrated Circuit (ASIC) Market Companies

The major global players include Alle Rechten Veerbehouden, Honeywell International Inc., Infineon Technologies AG, Intel Corporation, Marvell, Maxim Integrated, Omnivision, Qualcomm Technologies, Inc., Renesas Electronics Corporation and STMicroelectronics.

COVID Impact

ASIC production involves complex processes that necessitate the use of specialised facilities and equipment. Many semiconductor fabrication plants (fabs) have been required to temporarily close or operate at reduced capacity in order to comply with safety rules and protect their personnel. Manufacturing slowdowns have resulted in ASIC production delays and longer lead times for clients. 

The increasing demand for chips during the pandemic, as well as the previous two years' rigorous attempts to develop a self-sufficient semiconductor sector in the face of U.S. crackdown, contributed to the sector's growth. U.S. tightened semiconductor export restrictions on Chinese technological behemoths like Huawei, which have stringent standards for suppliers and partners, allow local firms who previously could not qualify as suppliers an opportunity to become important players in the 5G industry.

Russia- Ukraine War Impact 

The conflict has the potential to disrupt the global supply chain for ASICs. Ukraine is well-known for its semiconductor manufacturing skills, which include the manufacture of electronic components required in ASIC fabrication. If the conflict interrupts the manufacturing facilities, it could result in a shortage of critical components, harming overall ASIC supply. 

The conflict between Russia and Ukraine is projected to intensify semiconductor supply chain concerns and chip scarcity, which has hampered the industry for the previous two years. The supply of key raw materials required in semiconductor manufacture, such as neon and palladium, is the greatest risk. Owing to the vast resources, many businesses will most certainly have stockpiles and connections to keep their operations running. However, smaller chipmakers will be limited in their alternatives. 

Key Developments

• Intel, a global technology company based in Santa Clara, California, unveiled details for its new Intel® BlockscaleTM ASIC in April 2022. The Intel Blockscale ASIC will provide the energy efficiency and computing power required to enable scalability and sustainability for proof-of-work algorithms that are suitable with ASIC-based systems and SHA-256 hashing.
• In July 2020, Marvell, an American corporation based in Santa Clara, California that develops and manufactures semiconductors and related technology, unveiled an unique custom ASIC product designed to meet the severe needs of next-generation 5G carriers, cloud data centres, enterprise and automotive applications. 
• IC'Alps, a French expert in the design and delivery of application specific integrated circuits (ASIC), announced the introduction of its new website in June 2020. It is a one-stop shop for microelectronics specialists and newcomers with a product innovation that necessitates the integration of electrical functions. The website provides simple-to-understand text and visuals about the applications and benefits of application specific integrated circuits (ASIC).

Why Purchase the Report?

• To visualize the global application-specific integrated circuit (ASIC) market segmentation based on type, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development. 
• Excel data sheet with numerous data points of application-specific integrated circuit (ASIC) market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global application specific integrated circuit (ASIC) market report would provide approximately 61 tables, 62 figures and 205 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies