Field Programmable Gate Array Market size is poised to surpass USD 30 Billion by the end of 2036, growing at a CAGR of 18% during the forecast period, i.e., 2024-2036. In the year 2023, the industry size of FPGA was USD 12 Billion. The market is estimated to grow due to hinging on the amalgamation of artificial intelligence (AI) and Internet of things (IoT) Reflecting several surveys, soon, upwards of 80% of enterprises' IoT projects will incorporate AI components, positioning FPGAs as a fundamental growth driver. The inherent adaptability and high efficiency of FPGAs are indispensable for meeting the dynamic requirements of AIoT, propelling market growth as they deliver computational versatility and strength.
In addition to these, other factors believed to fuel the market growth include the deployment of data centers and advancement of high performance computing, leveraging FPGAs in machine learning and deep learning. The development of 5G and networking infrastructure and the increasing demand of IoT devices further boosting market growth.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
~18% |
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Base Year Market Size (2023) |
~ USD 12 Billion |
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Forecast Year Market Size (2036) |
~ USD 30 Billion |
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Regional Scope |
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Type (Low-End, High-End)
The low-end FPGA segment in the field programmable gate array market is estimated to gain the largest revenue share of about 68% by 2036. Low-range FPGAs are anticipated to reach a market revenue of USD 5 billion as of 2023, demonstrating their dominance in market. This dominance is attributed to their enhanced features, such as high-level security and embedded-flash, which are significantly used for system control and management application across various sectors including communication, computing, and industrial markets. This is followed by mid-range FPGAs of USD 4 billion and high-range FPGAs accounting for USD 5 billion in total market revenue.
Application (Military & Aerospace, Telecom)
The telecom segment in the field programmable gate array market is estimated to gain the significant share of about 53% in the year 2036. This anticipated growth in the telecom segment can be attributed to the expanding utilization of FPGAs for various applications including optical transport network, data packet processing, and packet switching. There relevance of FPGAs is particularly pronounced in the context of enhancing telecommunication networks to support advanced generations like LTE, which provides fast download speed of 100Mbps, approximately 5-10 times faster than 3G, showcasing critical role of FPGAs in enabling telecom services providers to boost bandwidth significantly.
Our in-depth analysis of the global market includes the following segments:
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Type |
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Technology |
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Application |
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APAC Market Forecast
The Asia Pacific field programmable gate array market is anticipated to hold the largest share of about 36% by the end of 2036. China, the region’s leader, has significantly benefiting from the ongoing government-led efforts to boost industrial expansion. Such as Guangdong province’s announcement in April, 2023 to launch the second phase of its semiconductor funding with an investment exceeding USD 4 billion. This move aims to increase the regions technological independence, especially in semiconductors, expected to propel the market growth and maintain its market leadership. This context is reinforced by latest figures showing Asia-Pacific semiconductors sales reaching USD 12 billion, up 4% from previous month but down 6% from previous year, reflecting dynamic nature of the market and the ongoing impact of strategic investments.
North American Market Analysis
The North America field programmable gate array market is estimated to be the second largest revenue share of about 28% by the end of 2036. The market’s expansion can be attributed majorly to the significant ad advancements in the semiconductor industry, with revenue in the semiconductors industry projected to reach USD 120 billion in 2024. Integrated circuits, dominating the sector, are forecasted to account for a market volume of USD 106 billion in the same year. The industry is poised for an impressive trajectory of robust and uninterrupted growth. This period is expected to witness a significant elevation in the market’s valuation, underscored by a consistent expansion in its scope and influence. These developments highlight the dynamic and expanding nature of the semiconductor industry in North America, driven by technological advancements and strategic expansions by key players.
Author Credits: Abhishek Verma, Hetal Singh
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