ANALOG IC MARKET ANALYSIS

Global Analog IC market is estimated to be valued at US$ 120 Bn by 2030.

An analog circuit perform single processing on time varying signals with a range of levels in either voltage, charge or current. Analog ICs take any inputs and produce outputs of any level. For instance, audio amplifier is an analog IC, wherein it takes analog input and produces an analog output, i.e. it takes sound and produces louder sound. Analog ICs are different from discrete analog circuits in that it is fully integrated onto a single monolithic piece of silicon, where selecting individual element is impossible. The analog IC designers work within the constraints of circuit elements, their range of values and their tolerances that the process technology allows. Although most of the modern devices are digital, they operate with constantly varying analog inputs such as heat, light, and sound, which needs  to be in digital signals and zeros of processing.

Global Analog IC Market: Regional Insights

In 2022, Asia Pacific had the highest market share of 44.1% and is predicted to maintain its leading position in the market for the foreseeable future. Meanwhile, in the same year, the demand for analog Integrated Circuits (ICs) in North America accounted for 25.3% of the global market.

From 2023 to 2030, North America is also projected to experience significant growth, with a notable compound annual growth rate (CAGR). The growing utilization of electronics in various aspects such as fuel efficiency, safety, emission reduction, navigation, and entertainment systems has resulted in a higher demand for analog integrated circuits. This can be attributed to the widespread adoption of semiconductor devices in automotive systems. Moreover, the automation systems of leading fully autonomous vehicles are further amplifying the overall integration of integrated circuits in each vehicle.

Figure 1. Global Analog IC Market Share (%), By Region, 2022

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Global Analog IC Market- Impact of Coronavirus (COVID-19) Pandemic

Globally, most of the countries were affected by COVID-19, and had implemented lockdown. COVID-19 has significantly disrupted almost all the industries including electronics & semiconductor, automotive, manufacturing, media & entertainment, and others. The Covid-19 pandemic affected the Analog IC market negatively. It led to a global shortage of chipsets and supply chain disruption. Certain companies in the market have commenced operations again, and they are encountering difficulties in swiftly ramping up production capacity while also recovering from the previous setbacks caused by the temporary halt in manufacturing activities. COVID-19 has a significant impact on the supply-side as well as the demand side of the semiconductors industry. Slowdown in production by set top box manufacturers due to COVID-19 crisis resulted in demand variation for set top box SoC chipsets.

Global Analog IC Market- Drivers

Increasing demand for advanced consumer electronics fuels growth in the global analog IC market.

In recent times, there has been a significant demand for consumer electronics such as Blu-ray players, tablets, smartphones, and LCD TVs. Additionally, the market has also seen a rise in the popularity of advanced products like ultra 4K HD TVs, wearable fitness trackers, smart watches, smart smoke and CO2 detectors, thermostats, IP/Wi-Fi cameras, smart switches, smart locks, dimmers, and more. These products are projected to experience substantial growth in the coming period. Furthermore, many of these devices incorporate sensors that interact with the physical world, requiring analog processing for analog to digital conversion. By combining these functions with digital technology, a cost-effective, low-power, and reliable solution is achieved. As a result, these factors are expected to drive the growth of the global analog IC market during the forecast period.

Growing automotive safety system adoption drives growth in the global analog IC market.

The increased utilization of electronics in areas such as fuel efficiency, safety, emission reduction, navigation, and entertainment systems has led to the integration of semiconductor devices in automotive systems, resulting in a heightened demand for analog ICs. Moreover, the presence of partial or fully autonomous systems in leading vehicles has contributed to an increased overall IC content per automobile. As next-generation advanced driver assistance systems (ADAS) aim to expand their sensing range, enhance detection accuracy, and implement efficient algorithms for prompt responses in various driving conditions, the computational load also increases significantly. Consequently, the rising demand for autonomous and intelligent vehicles is expected to drive the need for advanced sensors in the foreseeable future. This, in turn, is anticipated to bolster the global analog IC market.

Global Analog IC Market- Opportunities

The provision of cost-effective semiconductors that incorporate advanced features is anticipated to present a highly profitable growth opportunity.

Major players in the industry have the potential to increase their revenue and establish a stronger market presence by providing semiconductors at affordable prices. In general, counterfeit semiconductors are available at lower prices, but they often lack performance or experience premature failures. By offering high-quality products at economical prices, leading manufacturers can eliminate or at least minimize the risk of counterfeit semiconductors. This strategy not only helps to enhance their market presence but also ensures customer satisfaction and reliability.

In the near future, the opportunity for significant growth lies in the mergers and acquisitions taking place among key players.

Several manufacturers in the market are actively pursuing strategies of mergers and acquisitions to capitalize on business prospects. For example, Analog Devices, Inc. announced its intention to fully acquire Linear Technology Corporation by the end of the second fiscal quarter of 2017, and the necessary long-term debt financing arrangements have been successfully completed for the acquisition. Similarly, NXP Semiconductors N.V. merged with Freescale Semiconductor, Ltd. in December 2015 to leverage emerging opportunities in connectivity, processing, and security. This merger aimed to strengthen NXP's global market position and establish it as one of the leading automotive electronics manufacturers worldwide.

Global Analog IC Market- Trends

The sluggish growth of the global economy has impeded the progress of the semiconductor industry.

The growth of the global semiconductor market is closely tied to the state of the global economy. This means that strong growth in the semiconductor market cannot occur without robust economic growth worldwide. Recently, many local economies in various parts of the world have experienced significant slowdowns. In 2016, China, a leader in consumer electronics such as personal computers, smartphones, digital TVs, aircraft, and automobiles, lost its economic momentum, according to Coherent Market Insight's analysis. Additionally, the worldwide economy is expected to be negatively impacted by the Brexit vote in the near future. However, at present, since the United Kingdom is unlikely to officially leave the European Union (EU) for several more years, the main negative effect on economic growth is the uncertainty surrounding the entire situation.

The demand for analog integrated circuits (IC) is anticipated to increase in the coming years due to technological advancements aimed at creating innovative products.

Major companies in the market are concentrating their efforts on research and development endeavors to create innovative products that can meet the increasing demand. As an example, in September 2016, Texas Instruments Inc. introduced an advanced wireless microcontroller with ultra-low power consumption. This microcontroller supports both Sub-1 GHz and Bluetooth low energy connectivity on a single chip, enabling developers to transition from a complex three-chip solution to a compact single chip. This transition reduces design complications, saves power, cuts costs, and requires less board space. Additionally, in April 2016, Technologies A.G.'s OPTIGA TPM chips were chosen to be integrated into Lenovo's ThinkPad notebooks. This decision was made to address the security risks associated with connectivity and networking, enhancing protection against potential hacker attacks.

Global Analog IC Market- Restraints

Fake semiconductor components are expected to restrict the growth of the global analog IC market.

The global presence of counterfeit semiconductors poses significant risks to semiconductor suppliers, public health and safety, as well as civilian and military infrastructure. This pervasive issue persists despite stringent laws protecting intellectual property rights. These fake semiconductors, being of inferior quality, have a tendency to fail prematurely or not perform as intended. If used in navigational, detection, testing, monitoring electronics, or other similar products, these counterfeit components can result in catastrophic failures. The Semiconductor Industry Association (SIA) reports that the U.S. semiconductor industry suffers approximately US$ 7.5 billion in annual losses due to counterfeit semiconductor components.

Analog IC market growth may be hindered due to the complex design process.

The design process of analog ICs poses a significant challenge for manufacturers, as the demand for different types of analog ICs is uncertain due to technological advancements and device innovations. Consequently, key players in the market are constantly striving to develop new and innovative products to remain competitive. Additionally, ensuring product quality while cost-effectively upgrading analog ICs presents another obstacle for market participants. The integration of advanced features into devices that utilize analog ICs involves substantial hidden costs that manufacturers must bear. These factors are anticipated to hinder the growth of the market in the coming years.

Figure 2: Global Analog IC Market Share (%), By Application, 2022

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Global Analog IC Market- Segmentation

Global Analog IC Market report is segmented into product type, application and region.

By Product Type: Application Specific IC, General Purpose IC

By Application: Consumer Electronics, Automotive, Industrial, Medical and Healthcare, and others

Global Analog IC Market: Key Developments

Major market players are focusing on product launches, in order to enhance their product portfolio.

For instance, In August 2022, Infineon Technologies AG expanded its lineup of high-bandwidth, low-pin-count memory solutions by introducing HYPERRAM 3.0. This new device features a 16-bit extended Hyper Bus interface, which effectively doubles the throughput to 800 MBps. The HYPERRAM 3.0 platform from Infineon offers a range of high-bandwidth memory options with reduced pin count and power consumption. It is particularly well-suited for applications that require additional RAM, such as video buffering, industrial automation, AI of Things, automotive vehicle-to-everything (V2X), and scenarios involving intensive mathematical computations that rely on scratch-pad memory.

For instance, in August 2022, Microchip Technology expanded its serial-attached memory controller portfolio by introducing the SMC 2000 series of Smart Memory Controllers based on Compute Express Link (CXL) technology. This addition enables CPUs, GPUs, and SoCs to connect DDR4 or DDR5 memory using CXL interfaces. By leveraging this technology, current CPUs can optimize application workloads, resulting in enhanced memory bandwidth per core and increased memory capacity per core. These improvements have the potential to reduce the total cost of ownership (TCO) in data centers.

In June 2022, In June 2022, ADI (Analog Devices, Inc.) unveiled the first-ever high-resolution indirect Time-of-Flight (iToF) module designed for 3D depth sensing and vision systems in industrial settings. This innovative module enables cameras and sensors to perceive 3D space with a resolution of one megapixel. The ADTF3175 module is equipped with highly precise iToF technology, offering an accuracy of +/-3mm. It has the potential to be utilized in various machine vision applications across industries such as industrial automation, logistics, healthcare, and augmented reality.

In January 2020, Analog Integrated Circuit (IC) Market Trend Expected To Rise – Analog Devices, Maxim Integrated Products, STMicroelectronics

In June 16, 2023, According to the latest research, the global Analog Integrated Circuit (IC) market looks promising in the next 5 years. As of 2022, the global Analog Integrated Circuit (IC) market was estimated at USD Billion, and it’s anticipated to reach USD Billion in 2028, with a CAGR during the forecast years

Global Analog IC Market: Key Companies Insights

Key players operating in the global analog IC market are Texas Instruments Incorporated, Renesas Corporation, Infineon Technologies AG, Qualcomm Technologies, Inc., NXP Semiconductors, ON Semiconductor, STMicroelectronics, Skyworks Solutions, Inc., Analog Devices, Inc., and Maxim Integrated Products Inc.

*Definition:

The analog IC (Integrated Circuit) market refers to the industry that deals with the design, development, production, and distribution of integrated circuits specifically designed for analog signal processing and amplification. Analog ICs are used in a wide range of applications such as audio and video processing, power management, sensors, and communication systems. This market is characterized by the demand for high-performance, low-power, and miniaturized analog ICs to meet the requirements of various electronic devices and systems.