Advanced Packaging Market size is set to surpass USD 40 billion by 2026, according to a new research report by Global Market Insights Inc.
Increasing penetration of Artificial Intelligence (AI) devices is booting the advanced packaging industry growth. AI chipsets require fast processing cores, small form factors, and energy efficiency driving the market opportunities.
The proliferation of 5G technology across the globe will also fuel the advanced packaging market demand. The 5G chipsets are developed using advanced packaging technology, which helps them to achieve high-performance, compact size, and low power consumption in 5G-enabled devices. According to the Mobile Economy 2020 Report by GSM Association, the global 5G adoption will exceed 1.8 billion connections worldwide by 2025 with the majority of users from Asia and North America regions.
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The continuous technology innovations to reduce process nodes and the development of 2.5D/3D IC packaging have increased the cost of production. Stringent government regulations implementing trade restrictions and high tariffs are further limiting the sector growth.
Rising adoption of fan-out wafer level packaging in consumer electronics
The fan-out segment is projected to grow at a significant rate of over 10% through 2026 due to the increasing acceptance of these technology by major smartphones and wearable device manufacturing companies. Companies are integrating chipsets and ICs with this technology in their smartphone products, which is posing a lucrative advantage to the market.
Browse key industry insights spread across 250 pages with 105 market data tables and 41 figures & charts from the report, “Advanced Packaging Market Size By Packaging Type (Flip-chip, Fan-in Wafer Level (WLP) Packaging, Embedded-die, Fan-out, 2.5 Dimensional / 3 Dimensional), By Application (Consumer Electronics, Automotive, Industrial, Healthcare, Aerospace& Defense), COVID-19 Impact Analysis, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2020 – 2026”, in detail along with the table of contents:
Rising development in automotive electronics and vehicle control systems
The automotive application is estimated to observe around 10% CAGR through 2026 led by rising development in automotive electronics and control system for advanced vehicles. The automotive sector is witnessing high adoption of advanced-packaging chipsets, which are integrated into ADAS, Electric Vehicles (EVs), and other applications. Companies are focusing on developing their automotive solutions by leveraging the advanced packaging technology.
Favorable government initiatives in the U.S.
North America advanced packaging market is poised to register 5% gains till 2026. Growing government initiatives to propel the electronics & semiconductor manufacturing industry in the region will propel the market growth. North American is witnessing high investments from some of the major foundry providers including TSMC and GlobalFoundries.
Key players in the market include Advanced Semiconductor Engineering, Inc., Deca Technologies, Powertech Technology Inc., Sanmina Corporation, Amkor Technology Inc. and Brewer Science Inc. These companies are extensively focusing on research & development activities to increase their market share.