Application Specific Integrated Circuit Market size is expected to cross USD 32 Billion by the end of 2036, growing at a CAGR of 6% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of application specific integrated circuits was over USD 17 Billion.
The market demand is growing as there are advantages to using field-programmable gate arrays (FPGAs) for logic solutions in aerospace applications. It provides programmable devices with memory interfaces, state-of-the-art IP-like microprocessors, and exceptional performance capabilities. This could make these programmable electronics more appealing for use in airplane applications. ASIC chips are also used for identity verification in aviation or maritime security to confirm that the bearer has completed the security examination. For instance, an FPGA's logic blocks can be set up to operate as straightforward logic gates like AND and XOR or to carry more intricate combinational operations. Simple flip-flops or more extensive memory blocks can be found as memory elements in most FPGA logic blocks.
Another factor that will help the application specific integrated circuit industry to rise is the increasing use of tablets and smartphones across the world. With over 50% of mobile phones in the United States already being smartphones, the fast adoption of these devices is expected to continue.
Through the integration of several smaller and medium-sized integrated circuit functions into a single chip, application specific integrated circuit (ASIC) circuits allow for the full integration of the entire system, guaranteeing compliance with system specifications.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
6% |
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Base Year Market Size (2023) |
USD 17 Billion |
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Forecast Year Market Size (2036) |
USD 32 Billion |
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Regional Scope |
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End-User (Consumer Electronics, Automotive, Telecommunication, Healthcare, Aerospace, Media & Entertainment, Industrial)
The consumer electronics segment is estimated to hold the largest application specific integrated circuit market share of about 35% between 2024 and 2036. This vertical is expected to offer profitable growth opportunities for all parties involved in the value chain, mainly due to the increasing global use of application specific integrated circuits in laptops, tablets, and smartphones. As of 2023, there are 1.28 billion tablet users worldwide, according to a recent report. In 2022, tablet users in the US spent an average of 7.42 minutes using the device.
Due to its numerous benefits, such as reduced power consumption, IP security, small size, and increased bandwidth, ASICs are becoming increasingly popular in the consumer electronics sector. The fast development of electronic gadgets has also made it possible for increased stability and energy efficiency, which is driving the market expansion. These integrated circuits (ICs) have a wide range of uses outside of the consumer electronics industry, including the telecommunications, industrial, and healthcare sectors.
Type (Full Custom ASIC, Semi-Custom ASIC, Programmable ASIC)
The semi-custom ASIC segment in the application specific integrated circuit market is projected to hold the largest revenue share of about 45% through 2036. Its broad range of applications and relatively lower complexity as compared to the other segments are the reasons for its rise. Three different types of ASICs are often offered by manufacturers in the ASIC market: programmable, full-custom, and semi-custom ASICs.
This is explained by its electrical and digital-logic characteristics, which include things like capacitance and inductance. High component density and enhanced electrical performance are made possible by these attributes. Furthermore, because powerful static random-access memory and internet protocol cores are integrated into cell-based ASICs, they are versatile and can be applied to a wide range of products, regardless of design complexity, enabling smooth system operation.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Application |
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End-User |
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APAC Market Statistics
Application specific integrated circuit market in the Asia Pacific region is attributed to holding the largest revenue share of about 30% by 2036. The tremendous development in demand for ASICs in the region can be ascribed to multiple critical aspects.
First, the region's fast economic expansion and growing industrialization are driving a surge in demand for energy-efficient gadgets. Furthermore, the Asia Pacific region's widespread use of smartphones has also aided in the market's growth. market expansion is encouraged by the increasing use of these devices, particularly in developing nations like China, Japan, and India. The Asia-Pacific region's smartphone adoption rate increased from 64 percent in 2019 to 76 percent in 2022. In APAC, smartphone use was predicted to surpass 90% by 2030.
North American Market Analysis
The application specific integrated circuit market in the North America region is expected to hold 27% of the revenue share in the upcoming years. One of the main reasons for the growth in the region is the substantial presence of well-known companies, such as Texas Instruments Inc., Qualcomm Inc., Intel Corporation, and Maxim Integrated Products Inc., North America is dominated by the United States in the current market environment.
The United States has experienced significant advancements in several areas, including healthcare monitoring systems, electric and hybrid automobiles, and consumer electronics. North America is home to a large number of ASIC manufacturers and solution providers due to its early adoption of the technology.
Author Credits: Abhishek Verma, Hetal Singh
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