Application Specific Integrated Circuit Market Trends

Growth Drivers

• Growing need for ASIC in the automotive industry - The need for ASICs in the automotive industry is mainly supported by the growing use of electronics in various automotive modules. From April 2022 to March 2023, the industry produced 2,59,31,867 vehicles, including passenger cars, commercial vehicles, three-wheelers, two-wheelers, and quadricycles, compared to 2,30,40,066 units in April 2021 to March 2022.
• Technological developments will open up new market opportunities - The unit cost of application specific integrated circuits has been declining due to the development of technologies like big data analytics, blockchain, the Internet of Things (IoT), and machine learning.
  
  Because of the aforementioned advancements' extensive use in data center architecture, networked devices, and public clouds, organizational data can travel throughout the IT network more swiftly. Thus, to reduce operating expenses, companies are adopting these ICs to enable the use of cutting-edge technology in gadgets.
• The growing consumer electronics sector is fuelling the expansion of the market - The need for ASICs has increased over the past few decades because of their beneficial qualities, which include lower power consumption, higher integration, intellectual property protection, and higher functionality.
  
  The increasing investment in the development of advanced integrated circuits is contributing to the growth of the application specific integrated circuits (ASICs) market revenue. Using ASICS can be quite beneficial for many high-volume applications, regardless of how costly an ASIC design may be, and it is possible to alter the ASIC design to meet the requirements of the product specifications. With ASIC, fewer extra components are needed because a significant amount of the entire design can be contained in a single integrated circuit.

Challenges

• One of the main market constraints is high cost - The cost of developing integrated circuits tailored to a particular application is high, and to save costs, customization can be applied at many different levels. As a result, it is anticipated that the application specific integrated circuit market will grow slowly over the next several years due to issues with functional reliability, the high cost of creating custom circuits, and the difficulty of developing circuits.
• Longer time to market and design cycles than off-the-shelf options may hinder the market growth.
• Limited ability to adjust and change course in response to new demands