Application Specific Integrated Circuit Market Forecasts to 2030 - Global Analysis By Type, Application, End User and By Geography

According to Stratistics MRC, the Global Application Specific Integrated Circuit (ASIC) Market is accounted for $18.4 billion in 2024 and is expected to reach $28.5 billion by 2030, growing at a CAGR of 7.6% during the forecast period. Application-specific integrated circuit (ASIC) is a specially made microchip intended for a single purpose as opposed to general usage. These circuits are designed to maximize functionality, efficiency, and performance for specific tasks like machine learning, cryptography, and digital signal processing. ASICs offer lower power consumption, increased speed, and smaller size. They are extensively utilized in automotive systems, consumer electronics, telecommunications, and specialized computing environments.

According to Gartner, worldwide semiconductor revenue grew 25.1% in 2021 to total $583.5 billion, with strong growth in segments like 5G smartphones that rely heavily on ASICs.

Market Dynamics:

Driver:

Rising demand for consumer electronics

The increasing demand for consumer electronics, particularly smartphones, smartwatches, and tablets, is driving the growth of the ASIC market. ASICs are essential components in these devices, providing specialized functionality and improved energy efficiency. As consumer electronics continue to evolve and incorporate more advanced features, the demand for ASICs is expected to rise, fueling market growth.

Restraint:

High development costs

The high costs associated with ASIC development and production pose a significant restraint to market growth. Designing and manufacturing ASICs requires substantial investments in research, development, and specialized equipment. These high costs can be prohibitive for smaller companies and may limit the adoption of ASICs in certain applications, potentially slowing market expansion.

Opportunity:

Expansion in IoT devices

The rapid growth of the Internet of Things (IoT) presents a significant opportunity for the ASIC market. As IoT devices become more prevalent across various industries, the demand for specialized, energy-efficient chips is increasing. ASICs can provide tailored solutions for IoT applications, offering improved performance and power efficiency compared to general-purpose processors. This expanding market segment offers substantial growth potential for ASIC manufacturers.

Threat:

Competition from FPGAs and GPUs

The ASIC market faces competition from alternative chip technologies, particularly field-programmable gate arrays (FPGAs) and graphics processing units (GPUs). These technologies offer flexibility and programmability, which can be advantageous in certain applications. As FPGAs and GPUs continue to improve in performance and energy efficiency, they may pose a threat to ASIC adoption in some market segments, potentially impacting overall market growth.

Covid-19 Impact:

The COVID-19 pandemic initially disrupted the ASIC market due to supply chain interruptions and reduced consumer spending. However, the increased reliance on digital technologies during lockdowns accelerated the demand for electronic devices, ultimately benefiting the ASIC market. The pandemic also highlighted the importance of robust supply chains, leading to efforts to diversify and strengthen semiconductor manufacturing capabilities globally.

The consumer electronics segment is expected to be the largest during the forecast period

The consumer electronics segment is predicted to secure the largest market share throughout the forecast period. This dominance can be attributed to the widespread adoption of ASICs in smartphones, tablets, smartwatches, and other consumer devices. ASICs enable these products to offer advanced features, improved performance, and enhanced energy efficiency. The continuous innovation in consumer electronics and the increasing integration of AI and IoT capabilities further drive the demand for specialized ASICs in this segment.

The full-custom ASIC segment is expected to have the highest CAGR during the forecast period

The full-custom ASIC segment is projected to have the highest CAGR in the ASIC market during the extrapolated period. Full-custom ASICs offer the highest level of customization and performance optimization, making them ideal for applications requiring maximum efficiency and functionality. The growing demand for specialized chips in emerging technologies such as AI, 5G, and autonomous vehicles is driving the rapid growth of this segment. Additionally, advancements in design tools and manufacturing processes are making full-custom ASICs more accessible to a broader range of companies.

Region with largest share:

The Asia Pacific region is projected to account for the largest market share during the forecast period. This dominance is attributed to the region's strong presence in consumer electronics manufacturing, particularly in countries like China, Japan, and South Korea. The increasing demand for energy-efficient devices, rapid smartphone adoption, and ongoing digitalization efforts contribute to the region's market leadership. Additionally, the presence of major semiconductor companies and consumer electronics giants further fuels the growth of the ASIC market in Asia Pacific.

Region with highest CAGR:

The North America region is projected to achieve the highest CAGR during the forecast period. This growth is driven by the widespread adoption of IoT technologies, the emergence of 5G networks, and significant advancements in consumer electronics, healthcare monitoring systems, and electric vehicles. The presence of numerous ASIC manufacturers and solution providers, coupled with early adoption of ASIC technology, positions North America for rapid market expansion. The region's focus on innovation and technological leadership in areas such as AI and autonomous systems further accelerates ASIC market growth.

Key players in the market

Some of the key players in Application Specific Integrated Circuit (ASIC) Market include Infineon Technologies AG, STMicroelectronics, Texas Instruments Inc., NXP Semiconductors N.V., ON Semiconductor Corporation, Analog Devices, Inc., Intel Corporation, NVIDIA Corporation, Qualcomm Technologies, Inc., Broadcom Inc., Renesas Electronics Corporation, Microchip Technology Inc., Xilinx, Inc., Marvell Technology Group Ltd., GlobalFoundries, Faraday Technology Corporation, and OmniVision Technologies, Inc.

Key Developments:

In September 2024, STMicroelectronics has unveiled a new generation of silicon carbide power technology tailored for next-generation EV traction inverters. The company plans to introduce multiple silicon carbide technology innovations through 2027, including a radical innovation. This development is relevant to ASICs as it represents advancements in specialized integrated circuits for automotive applications.

In May 2024, Infineon has opened the world's largest and most efficient 200-millimeter silicon carbide (SiC) power semiconductor fab in Kulim, Malaysia.

In May 2024, NVIDIA has confirmed its entry into the ASIC market. CEO Jensen Huang announced that Nvidia will start doing ASIC chip designs. This move is significant as it expands Nvidia's offerings beyond GPUs and into the ASIC space, potentially competing with its current customers.

Types Covered:

• Full-Custom ASIC
• Semi-Custom ASIC
• Programmable ASIC

Applications Covered:

• Artificial Intelligence and Machine Learning
• Data Processing and Storage
• Signal Processing
• Cryptography and Security
• Image and Video Processing
• Internet of Things (IoT)
• Blockchain and Cryptocurrency Mining
• Other Applications

End Users Covered:

• IT and Telecommunication
• Consumer Electronics
• Automotive
• Industrial Automation
• Healthcare and Medical Devices
• Aerospace and Defense
• Energy and Power
• Other End Users

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances