PUBLISHER: The Business Research Company | PRODUCT CODE: 1662515
PUBLISHER: The Business Research Company | PRODUCT CODE: 1662515
An application-specific integrated circuit (ASIC) is a type of integrated circuit that has been specifically optimized for a particular application. Because it is tailored to perform a specific task, an ASIC can operate more quickly and efficiently than a programmable logic device or a standard logic integrated circuit, which are designed for more general purposes.
The main types of Application-Specific Integrated Circuits include Full Custom ASICs, Semi-Custom ASICs, and Programmable ASICs. A Full Custom ASIC incorporates fully customized logic cells and all personalized mask layers. Various applications for ASICs span wireless communication, inferencing applications, acceleration and storage, video and broadcast, process and quality control, security and surveillance, and electrical distribution. These applications find use across industries such as telecommunications, industrial, media and entertainment, automotive, healthcare, aerospace, consumer electronics, and others.
The application specific integrated circuit market research report is one of a series of new reports from The Business Research Company that provides application specific integrated circuit market statistics, including application specific integrated circuit industry global market size, regional shares, competitors with application specific integrated circuit market share, detailed application specific integrated circuit market segments, market trends, and opportunities, and any further data you may need to thrive in the application specific integrated circuit industry. This application specific integrated circuit market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.
The application specific integrated circuit market size has grown strongly in recent years. It will grow from $17.33 billion in 2024 to $18.46 billion in 2025 at a compound annual growth rate (CAGR) of 6.5%. The growth in the historic period can be attributed to cost efficiency and performance improvement, growing complexity of applications, market expansion in electronics and communication sectors, shrinking design cycles, increasing integration in consumer electronics.
The application specific integrated circuit market size is expected to see strong growth in the next few years. It will grow to $24.45 billion in 2029 at a compound annual growth rate (CAGR) of 7.3%. The growth in the forecast period can be attributed to rise in IoT devices and edge computing, automotive electronics evolution, demand for energy-efficient solutions, increased complexity in semiconductor design, collaborations and partnerships. Major trends in the forecast period include emergence of 5g technology, rapid prototyping and time-to-market, security concerns and solutions, advancements in process technologies, increasing demand for customization.
The increasing adoption of cryptocurrencies is anticipated to drive the growth of the application-specific integrated circuit (ASIC) market in the future. Cryptocurrencies are digital currencies created through encryption techniques, which enable them to function as both a medium of exchange and a virtual accounting system. ASIC devices are utilized in cryptocurrency mining, leveraging advanced computing power for efficient processing. Consequently, the rising popularity of cryptocurrencies is expected to expand the market for ASICs. For example, in February 2023, a report by the Financial Conduct Authority, a UK-based financial regulatory agency, indicated that the percentage of UK adults owning crypto assets is projected to increase from 3.9% to 4.4%, with the average individual investment rising from £260 to £300 in 2021. Therefore, the growing adoption of cryptocurrencies is fueling the growth of the application-specific integrated circuit market.
The escalating demand for smartphones is anticipated to act as a key catalyst propelling the growth of the application-specific integrated circuit market. Smartphones, multifunctional electronic devices amalgamating mobile phone and personal computer capabilities, heavily rely on ASICs to deliver top-notch performance, energy efficiency, and specialized functionalities. According to a report by Cybercrew in March 2023, smartphone usage in UK households soared to 91.43% in 2021, projected to reach 93.8% by 2026. This surge in smartphone penetration highlights the increasing reliance on these devices, consequently driving the demand for application-specific integrated circuits essential for their optimal functionality.
Technological advancements stand out as a pivotal trend driving the surge in the application-specific integrated circuit market. Notably, major industry players are dedicated to innovating and developing cutting-edge technologies to fortify their market positions. For example, in February 2023, Fortinet, a US-based cybersecurity products manufacturer, unveiled FortiSP5, a groundbreaking advancement in ASIC technology. FortiSP5 represents a significant leap forward in securing distributed network edges, delivering substantial gains in secure computing power compared to traditional CPUs and network ASICs. It offers enhanced cost-effectiveness, lower power consumption, and the capacity to establish secure infrastructure across various domains such as branches, campuses, 5G, edge computing, and operational technologies. Additionally, it boasts 32 times faster encryption capabilities, fortifying sensitive data protection and securing virtual private networks, among other critical benefits. This innovative stride underscores the ongoing pursuit of cutting-edge advancements driving the application-specific integrated circuit market's growth trajectory.
Major players in the application-specific integrated circuit (ASIC) market are emphasizing innovation through partnerships in education and research, such as automotive ASIC design centers, to secure a competitive advantage. An automotive ASIC design center is dedicated to developing specialized integrated circuits for automotive applications, including safety and power management systems. For example, in September 2023, IC Alps, a semiconductor company based in France, inaugurated a new design center in Toulouse, employing over 30 engineers who specialize in analog and mixed-signal integrated circuits for automotive use. This center strengthens IC Alps' status as a prominent ASIC Design House in the EMEA region, particularly in LED drivers and power management. Additionally, the team possesses expertise in HealthTech projects and will participate in various stages of ASIC development, including automotive safety frameworks. The company collaborates with multiple foundries, facilitating advanced technologies ranging from 0.18 μm to 5 nm.
In July 2024, Accenture Plc, a professional services firm based in Ireland, acquired Cientra for an undisclosed sum. This acquisition is intended to enhance Accenture's silicon design and engineering capabilities, allowing the company to drive innovations in AI, cloud, and edge computing across various key industries. This strategic move positions Accenture to address the increasing demand for next-generation semiconductor solutions. Cientra, based in the United States, is a silicon engineering services company that specializes in application-specific integrated circuit (ASIC) design.
Major companies operating in the application specific integrated circuit market include Infineon Technologies AG, Semiconductor Components Industries LLC, OmniVision Technologies Inc., Tekmos Inc., Seiko Epson Corporation, Socionext America Inc., Texas Instruments Incorporated, STMicroelectronics N.V., Qualcomm, Onsemi, Maxim Integrated, Broadcom Inc., Comport Data Inc., Fujitsu Limited, NXP Semiconductors N.V, Faraday Technology Corporation, Micron Technology, Intel Corporation, ASIX Electronics, Renesas Electronics Corporation, IC'Alps, Marvell Technology Group Ltd., Samsung Electronics, LG Electronics, Honeywell International Inc., eSilicon, Cypress Semiconductor Corporation
North America was the largest region in the application specific integrated circuit market in 2024. Asia-Pacific is expected to be the fastest-growing region in the application specific integrated circuit market report during the forecast period. The regions covered in the application specific integrated circuit market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the application specific integrated circuit market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The application specific integrated circuit market consists of sales of application-specific integrated circuit chip that manages the interface between memory and a microprocessor for a workstation CPU, chip for a spaceship, chip for a speaking toy bear and a chip that houses a microprocessor as well as additional functionality. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Application Specific Integrated Circuit Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on application specific integrated circuit market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for application specific integrated circuit ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The application specific integrated circuit market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.