3D ICS MARKET ANALYSIS

3d Ics Market Size and Trends

The global 3D ICs market is estimated to be valued at US$ 16.45 Bn in 2024 and is expected to reach US$ 60.23 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 20.4% from 2024 to 2031.

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The 3D ICs market is expected to witness robust growth over the forecast period. The miniaturization of semiconductor chips and the need for greater functionality with smaller form factor is expected to drive the demand for 3D ICs technology. 3D ICs help in overcoming challenges faced by traditional 2D scaling by enabling thinner chips, more functional capabilities and better performance. With growing demand for smart and connected devices across industries, stacked die and 3D ICs market will continue gaining prominence. The increasing penetration of 3G/LTE connectivity in mobile devices also supplements the need for higher functional integrated circuits (ICs) integrating memory and logic chips in a single package utilizing 3D ICs technology.

Rising demand for higher performance electronics

The demand for higher performance and more powerful consumer electronics such as smartphones, tablets, and other handheld devices has been growing rapidly in recent years. Users expect their devices to deliver more processing power and memory capacity to support applications such as high-resolution graphics, virtual reality, and mobile gaming. At the same time, there is constant pressure on device manufacturers to make devices thinner, lighter and more power efficient. Integrating more transistors in a traditional 2D chip design is becoming increasingly difficult due to physical and electrical interference limitations. 3D ICs technology allows stacking of multiple silicon wafers or die and facilitates vertical integration of different components such as RAM, graphics, wireless, and processing. This significantly increases the area available for circuitry and helps accommodate many more transistors and features in the same footprint. It also reduces distances between different components, resulting in improved speed and lower power consumption. Many top manufacturers of mobile processors and graphics chips have already started adopting 3D ICs design and manufacturing to deliver next generation devices with enhanced capabilities. Going forward, as consumer demands for even faster and more powerful yet energy efficient devices increase, 3D ICs is expected to play a bigger role in fulfilling those needs.

For instance, in September 2022, STMicroelectronics, a U.K.-based company, introduced a sophisticated VDA-compliant LIN alternator regulator designed to enhance the performance and adaptability of 12V automotive systems. This advanced regulator, known as the L9918, leverages a 3D ICs and improved functionality to ensure the reliability of 12V automotive systems. The L9918 allows users to customize settings such as alternator characteristics and voltage set points.

Increased adoption in other high growth verticals

While 3D ICs technology was initially utilized primarily in consumer electronics, its use is spreading to other verticals experiencing fast growth such as automotive, industrial equipment, and healthcare that require highly integrated and customized solutions. Autonomous and electric vehicles need sophisticated processing power and sensory capabilities to support functions such as computer vision, navigation, connected features and predictive maintenance. 3D stacking allows integrating different sensors, memory, control, and processing systems in the limited space available. Industrial equipment makers are exploring 3D designs to fulfill requirements for analytics-ready modular products. Medical devices would benefit from the technology's ability to integrate various lab-on-chip and microfluidic operations that empower applications like organ-on-chip models and point-of-care diagnostics. Governments and organizations worldwide are focusing on initiatives that support the research and development of customized 3D integrated solutions for strategic sectors. This expands the addressable market for 3D ICs beyond consumer devices and is driving greater attention and investments towards the technology from both private companies as well as public institutions.