Field Programmable Gate Array (FPGA) Market Analysis

Field Programmable Gate Array Market Analysis

The SRAM segment is expected to grow at a CAGR of 13% through 2028, due to its rising demand in military and aerospace applications such as electronic warfare systems, radar systems, and encrypted wireless communication devices. SRAM-based FPGAs are designed through the CMOS manufacturing process, resulting in higher power efficiency and higher logic density compared to other technologies. However, SRAM-based field programmable gate arrays are highly volatile and cannot store data without a dedicated power source.

The FPGA market players are focusing on developing advanced SRAM memory solutions to overcome the above-mentioned challenge and gain new opportunities in the industry. For instance, in February 2022, QuickLogic Corporation, a semiconductor manufacturing business based in California, released an SRAM-based low-power FPGA to address semiconductor supply & availability issues. Such innovations will further boost market growth during the projected timeline.

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The low-range segment in the FPGA market will register growth rate of around 15% till 2028, attributed to numerous high-end features offered such as low logic density, high-power efficiency, and reduced complexity. These features have accelerated its adoption in multiple portable electronic devices such as wearable devices, edge computing devices, and wireless gateways.

Industry players are proactively focusing on new product developments and launches to gain a competitive advantage in the market. For instance, in November 2021, Renesas Electronics Corporation, an advanced semiconductor manufacturer and supplier based in Japan, released a new FPGA product line for low-power range devices at a very low cost.

The <28 nm segment generated a revenue of more than USD 1.5 billion in 2021 and is anticipated to witness 14% growth during the forecast timeline. The growth can be credited to the several high-end features offered such as high-speed processing, miniaturized footprint, and increased efficiency, among others. These characteristics have encouraged its adoption in several markets including automotive electronics, high-performance computing, and telecommunication.

The consumer electronics sector held a FPGA market share of around 9% in 2021. The increasing disposable income in developing countries is contributing to the rising market demand for new appliances. FPGA solutions are integrated into various consumer electronics such as smartphones, laptops, digital cameras, game consoles, and tablets. The increasing adoption of new technologies, such as IoT, Natural Language Processing (NLP), and AI, in smart speakers, smart TVs, and edge AI devices will further propel the market growth.

The North America FPGA market is set to expand at more than 14% CAGR from 2022 to 2028. The growth is driven by rising government initiatives and funding activities to boost the regional semiconductor sector. For instance, in July 2021, the U.S. government passed the U.S Innovation and Competition Act (USICA), which is an initiative to boost semiconductor manufacturing. The bill comprises s total funding of USD 250 billion to launch innovative products and USD 52 billion for R&D activities in semiconductors.