Application Specific Integrated Circuit (ASIC) Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trend, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI3350
Application Specific Integrated Circuit Market size is expected to witness a rapid growth from 2019 to 2025 owing to its high adoption in the cryptocurrency mining process. The device helps in processing the data faster and more efficiently, completing single & highly focused tasks. It enables manufacturers in the application specific integrated circuit market to constitute complete mechanism on a single chip, reducing the requirements for other components and lowering the total cost of the mining hardware device. Several enterprises are offering high-quality chip with advanced SiGe (Silicon Germanium) technology. For instance, Silicon Radar GmbH is offering ASICs with SiGe technology that features up to 300 GHz, enabling high bandwidth and providing fast & reliable ASIC design process with a small number of iterations. Similarly, IBM Corporation offers SiGe BiCMOS technology, which delivers high performance, low power consumption, and a higher level of integration and maintains compatibility with its ASIC technology platform.
The rise in technological advancements & innovations in consumer electronic products such as smartphones, tablets, and laptops will result in high demand for modern IC chips, accelerating application specific integrated circuit market growth. It offers several advantages including low power consumption, IP security, small size, and higher bandwidth, leading to an increased adoption of the component in the consumer electronics industry. Several manufacturers in the ASIC market are engaged in developing & designing customized ICs based on their client requirements. For instance, Intel Corporation is offering ASIC design services to provide its customers components with the latest technology & features with the help of industry experts. Moreover, the rapid upgrading of electronic devices is enabling a consistent performance and energy efficiency, accelerating the growth of the application specific integrated circuit (ASIC) market.
High manufacturing costs associated with components are major challenges that will impact the application specific integrated circuit market growth. Designing a single circuit to fit a range of electronic products incurs a significant cost as there are high R&D efforts involved in this process. The circuit needs to be compatible with multiple electronic products of the same range, requiring manufacturers to make changes to the products, incurring additional costs. The cost & efforts associated with the installation of these components are further hindering the market growth. The installation of the IC requires special care as the circuit needs to be connected with different components of the device for optimized functioning.
The growth prospects of IoT, machine learning, blockchain, and big data analytics is projected to drive the application specific integrated circuit market demand. These components are being widely used in data center facilities, public clouds, and connected devices that enable the organizational data to move faster across the IT network. The enterprises are integrating these components to support the functioning of modern technologies in devices, resulting in operational cost savings and improved innovations. For instance, in July 2018, Google announced the launch of its cloud Tensor Processing Units (TPU), a custom-developed ASIC that is designed to accelerate machine learning workloads. Moreover, integrating these IoT devices with these components will enhance the functionality and offer greater design flexibility, generating further growth opportunities in the application specific integrated circuit (ASIC) market.
Full-custom chip design is expected to witness high growth in the application specific integrated circuit market owing to the increased benefit over other design types. These circuits provide smarter, faster, and more reliable performance with IP protection using less electrical power. The design is highly used for the layout of microprocessors due to its ability to provide complete flexibility and a high degree of optimization in performance. The full custom ASIC enables designers to customize logic cells, layouts & circuits, optimize memory cell, and mechanical structures on an IC, which will help to reduce design time & risks. The manufacturing time for these designs is eight weeks for a specific application due to its complex design, which is even more than semi-custom design ICs. However, high performance and lower design costs of full custom design components over the semi-custom design will drive its adoption in the application specific integrated circuit market.
The industrial segment of the application specific integrated circuit market is projected to grow substantially over the forecast time period. The industries that require highly reliable technological systems, such as aerospace & defense, military, and automotive, are adopting these chips as there are several electronic system failure instances in such industries. Integration of these chips replace traditional components including PCB traces and solder joints with a single IC, which will reduce the number of failure points and provide highly reliable industrial systems. Moreover, the growing adoption of several components such as microcontrollers, thermal controller, and programmable timer in industrial applications is accelerating the growth of the application specific integrated circuit market. Several manufacturers in the market are introducing IC chips specially designed for industrial applications. For instance, Custom Silicon Solutions, Inc. is offering CSS555C industrial ASIC, an advanced version of the popular 555 timer, which draws 10X less power than other 555 timer devices.
The Asia Pacific region is expected to dominate the application specific integrated circuit market over the forecast period owing to the presence of a large number of consumer electronics manufacturers. The growth in technological transformation in consumer electronics & automotive industries in countries such as Japan, China, India, and South Korea is expected to propel the growth of the application specific integrated circuit market in the region. The technological advancements & innovations in devices including smartphones, wireless headphones, speakers, and household appliances are growing the incorporation of modern IC chips in the systems. Moreover, the increasing population rate and the growing disposable income in these countries will result in the rapid upgrading of consumer electronics in the region, driving the growth of the market.
Players in the application specific integrated circuit market include Intel Corporation, Texas Instruments Inc., Infineon Technologies AG, ON Semiconductor Ltd., Qualcomm Inc., and NXP Semiconductors N.V. These manufacturers are focusing on product launches, collaborations, strategic partnerships, mergers, and acquisitions to compete in the market. For instance, in July 2018, Intel Corporation announced the acquisition of eASIC Corporation to expand its structured ASICs offering for high-performance and power-constrained applications.
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