FIELD PROGRAMMABLE GATE ARRAY MARKET ANALYSIS

The field programmable gate array market size was valued at USD 9.7 Bn in 2023 and is anticipated to witness a compound annual growth rate (CAGR) of 7% from 2023 to 2030. The market is to propel the market as there is a Rising demand for internet of things. The high consumption of power compared to asic is anticipated to hinder the market growth. Based on the segment the market is divided by configuration, by architecture and by end user type.

Field Programmable Gate Array Market Regional Insights

• North America has traditionally been the dominant region in the global FPGA market. The presence of major FPGA manufacturers like Intel and Xilinx with their headquarters located in the US has provided the region with an advantage in R&D and production capacity. As per the US International Trade Commission data published in January 2022, the US imports of programmable logic devices including FPGAs grew by over 15% between 2020 to 2021, indicating the strong demand from various end-use industries in the region. FPGAs enable high-performance computing applications which are widely used in North America across sectors like aerospace & defense, automotive, industrial automation etc.
• Asia Pacific region excluding Japan (APEJ) is emerging as the fastest growing region for FPGAs. Several APEJ countries like China, South Korea and India are witnessing strong growth in electronics manufacturing which creates opportunities for FPGA adoption. For example, according to statistics released by India Brand Equity Foundation in November 2022, India's electronics production is set to reach $300 billion by 2026 compared to $75 billion in 2020. This rapid growth of the electronics sector in the region is propelling FPGA usage across diverse end-use industries in APEJ. Additionally, the import and export of programmable logic devices including FPGAs from APEJ countries is rising steadily as reported by UN COMTRADE data from October 2022, reflecting increased FPGA trade activity in the region. With strong economic growth and industrial development, APEJ is poised to be the leading growth market for FPGAs globally.

Figure 1. Global Field Programmable Gate Array Market Share (%), by Region, 2023

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Analyst View Point: The dynamic nature of technological changes is placing limitations on the growth of the Field Programmable Gate Array (FPGA) market. As technology in the semiconductor industry advances rapidly, FPGAs need to constantly evolve and upgrade to newer process nodes to keep up with demand. However, transitioning to newer nodes requires huge investments of time and capital. For FPGA manufacturers, developing products for emerging technologies like artificial intelligence and 5G is a complex and lengthy process that involves extensive research and development.

By the time an FPGA designed for a certain technology reaches mass production that technology may have progressed further. This diminishes the window during which the FPGA remains relevant and competitive in the market. Additionally, with competing technologies like application-specific integrated circuits (ASICs) and structured ASICs offering better performance and power efficiency at more advanced nodes, some applications are moving away from FPGAs. For example, machine learning accelerators that were initially FPGA-based are now increasingly being implemented using ASICs for improved power-performance benefits.

Field Programmable Gate Array Market Drivers

• The Increasing Demand from Telecommunications Sector: The global telecommunications sector has been witnessing rising demand for faster and more efficient networking solutions to support the proliferation of smart devices and the increasing internet traffic. Field Programmable Gate Arrays or FPGAs have emerged as a preferred technology for telecom equipment manufacturers to develop their networking hardware for applications such as packet processing, traffic management and 5G infrastructure development. The reprogrammable nature of FPGAs allows telecom companies to update the hardware for integrating new features and protocols without having to design new application-specific integrated circuits (ASICs) from scratch.
• The Department of Telecommunications (DoT) aims to achieve several key objectives by December 2022, including providing 100% broadband connectivity in rural areas, achieving a 55% fiberization rate for mobile towers, ensuring an average broadband speed of 25 Mbps, and deploying 30 lakh kilometers of optic fiber across the country. As of September 2022, the number of broadband connections has increased significantly to 816 million, marking a remarkable growth of 1238% since March 2014 when it stood at 61 million.
• Rise of Edge Computing and Data Centers: With the proliferation of data consuming internet-of-things (IoT) devices and data-intensive applications such as artificial intelligence, the demand for distributed computing infrastructure has grown significantly. Edge computing deploys application-specific hardware such as FPGAs at the network edge to enable real-time processing and analytics close to the source of data generation rather than routing all data to centralized cloud data centers. This brings advantages like lower latency, network bandwidth savings, operational efficiency and better end-user experience. At the same time, to support rapidly scaling cloud-based workloads, data center operators also prefer reconfigurable FPGAs over application-specific ICs for their flexibility and power-efficiency.

Field Programmable Gate Array Market Opportunities

• Growth in emerging applications like AI and machine learning: Artificial intelligence and machine learning have become important technologies that are driving innovation across many industries. As these applications continue to grow more complex, the need for high performance computing grows exponentially. FPGAs are uniquely positioned to meet these demands due to their reprogrammability and ability to be tailored for parallel processing workloads. Many AI and ML tasks, such as image and speech recognition, require billions of mathematical operations per second to achieve useful results. The demand for AI and ML capabilities is projected to surge across many different sectors in the coming years. For example, according to 2021 data from the United Nations, the number of internet of things connected devices worldwide is expected to grow from 7 billion in 2017 to over 25 billion by 2025.
• Increasing penetration of eFPGAs into military and aerospace industry: Customizability, fast prototyping, real-time processing, space optimization, security, fault tolerance, legacy system integration, and adaptability to evolving standards are among the advantages of using eFPGAs in the aerospace sector. Because of these advantages, eFPGA has emerged as a valuable technology for enhancing the flexibility, dependability, and performance of aerospace applications. eFPGAs are used by the military for a variety of tasks, including lifecycle management, fault tolerance, secure communication, real-time processing, hardware acceleration, legacy system integration, and SWaP optimization.

Field Programmable Gate Array Market Trends

• The emergence of new technologies: The emergence of new technologies like artificial intelligence and 5G networks is expected to have a significant influence on the field programmable gate array (FPGA) market in the coming years. As AI workloads are becoming increasingly compute-intensive, there is a growing need for specialized hardware that can accelerate AI processing more efficiently than generalized processors. FPGAs are well-suited for this role as their highly parallel architecture allows them to speed up workloads like machine learning inference and computer vision processing more than CPUs or GPUs alone. Many major FPGA vendors have recently rolled out new products with enhancements targeted specifically at AI such as high-bandwidth memory interfaces and integrated machine learning engines.
• Growing Adoption of FPGA For Applications Requiring High Performance And Parallel Processing: The growing adoption of Field Programmable Gate Arrays or FPGAs for applications requiring high performance and parallel processing is having a profound impact on the FPGA market. FPGAs have seen increasing use in domains like high-performance computing, data analytics, artificial intelligence and machine learning in recent years. This is because FPGAs allow customizable, parallel processing which provides significant speed and efficiency gains over general purpose processors for these kinds of workloads. For example, several top AI and ML training organizations have extensively implemented FPGAs in their infrastructure to achieve faster, more power-efficient model training. In 2021, Anthropic, an AI safety startup, reworked their neural network training platform to leverage FPGAs from Intel and achieved a massive 400x increase in operations per second compared to GPU only servers. This helped them train models much more rapidly while reducing carbon footprint. Other companies in genomics, autonomous vehicles, fintech have also reported speedups of 10-100x by offloading portions of their workloads to FPGA accelerated servers.

Field Programmable Gate Array Market Restraints

• Dynamic nature of technological changes: The dynamic nature of technological changes is placing limitations on the growth of the Field Programmable Gate Array (FPGA) market. As technology in the semiconductor industry advances rapidly, FPGAs need to constantly evolve and upgrade to newer process nodes to keep up with demand. However, transitioning to newer nodes requires huge investments of time and capital. For FPGA manufacturers, developing products for emerging technologies like artificial intelligence and 5G is a complex and lengthy process that involves extensive research and development. The high upfront investment and risks involved deter some customers, especially smaller players, from fully embracing FPGAs. According to data from the International Telecommunication Union, worldwide 5G subscription numbers grew from around 16 million in 2019 to over 228 million by the end of 2020 despite delayed rollouts due to the pandemic. However, the pace of 5G adoption is still below initial projections indicating technology transitions pose difficulties.
• Counterbalance: The continuous advancements in technology can help in overcoming the complexity of designing FPGA circuits. New design tools and methodologies are being developed that can simplify the design process and make it more user-friendly. The increasing adoption of AI and machine learning in various industries can provide ample opportunities for the FPGA market. FPGA can be used in AI and machine learning applications due to their reprogrammable nature and high performance.

Recent Developments

• In NOV 2021, Xilinx approved Alveo U55C, its most effective accelerator card, purpose-built for HPC and big data assignments. The novel Alveo U55C card is the company’s most essential Alveo accelerator card, providing the huge computer density and HBM capacity in the Alveo accelerator database.
• In Feb 2022, AMD complete Acquisition with Xilinx. The amalgamation of AMD and Xilinx establishes a dominant force in the high-performance and adaptable computing industry. This union unites a harmonious array of products, customers, and market segments, bolstered by distinctive intellectual property and an exceptional team of experts. The integration of AMD and Xilinx yields significant advantages in terms of products, technology, markets, and financial strength. The acquisition of Xilinx brings together a highly complementary set of products, customers and markets combined with differentiated IP and world-class talent to create the industry’s high-performance and adaptive computing leader. Xilinx offers industry-leading FPGAs, adaptive SoCs, AI inference engines and software expertise that enable AMD to offer the strongest portfolio of high-performance
• In Nov 2021 Lattice Semiconductor Corporation complete acquisition with Mirametrix, Inc. a software company focused on advanced artificial intelligence (AI) solutions for computer vision applications, in an all-cash, accretive transaction. Mirametrix software has been successfully deployed in more than 20 million end user systems worldwide. Combining Mirametrix’s expertise with Lattice’s innovative hardware and software solution stacks creates an end-to-end AI and computer vision solution that spans from the hardware to the application layer.

Figure 2. Global Field Programmable Gate Array Market Share (%), By Architecture, 2023

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Top companies in Field Programmable Gate Array Market

• Xilinx Inc. (AMD Corporation)
• Intel Corporation
• Quicklogic Corporation
• GOWIN Semiconductor Corporation
• Microchip Technology Incorporated
• Lattice Semiconductor Corporation
• Efinix Inc
• Achronix Semiconductor Corporation
• S2C
• Others

Definition: Field Programmable Gate Arrays (FPGAs) are semiconductor devices constructed around a grid of configurable logic blocks (CLBs) interconnected through programmable pathways. What distinguishes FPGAs from Application Specific Integrated Circuits (ASICs) is their capacity to be reconfigured to suit specific application or functional needs, even after they have been manufactured. While one-time programmable (OTP) FPGAs are an option, the dominant and versatile variety is SRAM-based, allowing them to be tailored and adapted as necessary for various designs.

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