FPGA Market worth over $15bn by 2027
Published Date: January 27, 2021 Authors: Preeti Wadhwani, Shubhangi Yadav
Field Programmable Gate Array (FPGA) Market size is set to surpass USD 15 billion by 2027, according to a new research report by Global Market Insights, Inc.
The FPGA market is gaining traction due to the rising penetration of IoT technology and connected devices across the globe. According to the Cisco Annual Internet Report, the global number of IoT connections in 2018 was 6.1 billion, which is projected to hit the 14.7 billion mark by 2023. The connected home devices will account for 48% of IoT connections by 2023. These IoT devices will increasingly integrate field programmable gate arrays to achieve reduced latency, power efficiency, and software simplicity. The growing penetration of smart home devices across developed economies, such as the U.S., Italy, France, Germany, and Japan, is expected to increase the adoption of FPGA devices in the coming years.
The high cost of maintenance and implementation associated with field programmable gate arrays are major factors restraining the market growth. The cost of FPGA is usually low compared to ASIC as the design, development, and device testing cost is not included in the product. Furthermore, ICs used in field programmable gate array devices are also costly, which further increases the overall cost of the final product. Adding to this, process variation in FPGA manufacturing can reduce performance and vary the leakage in power consumption, which results in decreasing the yield on devices. This will further restrict the market expansion to some extent over the forecast timeline.
Rising demand for flash-based FPGA in the telecom sector will spur the market value
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The flash architecture segment held a FPGA market share of around 40% in 2020 and is anticipated to witness 15% growth rate till 2027 led by several advantages offered by the flash-architecture, such as high reliability, greater tolerance for radiation effects, and low power consumption, which makes it ideal for servers, modems, and Datacenter Interconnect (DCI) applications. The flash-based system eliminates the requirement for external memory configuration, which reduces system footprint and increases energy efficiency in field programmable gate array devices compared to SRAM architecture. Growing datacenter infrastructure development across developing economies including Malaysia, India, and the Philippines will rise the demand for flash-based architecture in the market.
Increasing acceptance of 28 nm – 90 nm process technology in 5G communications
The 28 nm – 90 nm process technology in the FPGA market dominated around 60% of the revenue share in 2020 impelled by the expansive penetration of 5G base stations across developed economies such as China, the U.S., and South Korea. 5G base stations are extensively adopting 28 nm and 32nm FPGA devices. These process technologies offer high-quality DSP bandwidth, less heat dissipation, and low-power consumption to the system, which are suitable for applications in radars, 10G to 100G networking, and 5G base-station equipment. According to the July 2020 press release by the Ministry of Industry and Information Technology (MIIT) China, Chinese mobile operators are poised to deploy over 600,000 5G base-stations by 2020. The government also announced to deploy one million new 5G stations by 2021. Such investments are likely to boost the segment growth.
Browse key industry insights spread across 260 pages with 237 market data tables and 28 figures & charts from the report, “Field Programmable Gate Array (FPGA) Market Size, By Architecture (SRAM, Flash, Antifuse), By Process Technology (<28 nm, 28 nm – 90 nm, >90 nm), By Configuration (Low-range FPGA, Mid-range FPGA, High-range FPGA), By Application (Consumer Electronics, Automotive, Industrial, Communications & Data Center, Aerospace & Defense), Industry Analysis Report, Regional Outlook, Application Potential, Competitive Market Share & Forecast, 2021 - 2027” in detail along with the table of contents:
Growing uptake of high-range FPGA in industrial robots to foster the industry growth
The FPGA market for high-range configuration segment will grow at a CAGR of 14% through 2027 propelled by high-end features offered by these devices to achieve high-performance & state-of-art products for higher productivity and fast-processing. High-range FPGA have major applications where power consumption is more such as industrial equipment, robotics, and automation systems. According to the World Robotics 2020 report, 2.7 million industrial robots are operating in factories worldwide and have observed a year-on-year growth rate of 12% compared to 2018. Two million new industrial robots are predicted to increase by 2022, which are estimated to increase the usage of high-range field programmable gate arrays over the forecast period.
Rising integration of safety and infotainment systems in automotive applications to accelerate the market expansion opportunities
The automotive application accounted for 5% of the FPGA market share in 2020. Field programmable gate arrays help automotive OEMs and manufacturers to develop innovative safety systems such as park assist, lane departure warning, blind-spot detection, and adaptive cruise control system. Stringent government regulations pertaining to the mandatory adoption of ADAS systems in automotive will further support the market revenue.
However, the COVID-19 pandemic has resulted in the declining sales of automotive, which may hamper the market demand over the short-term. According to the International Organization of Motor Vehicle Manufacturers (OICA), global automotive production witnessed a steep decline of 3% in the third quarter of 2020 compared to the third quarter of 2019 owing to production halts. Gradual relaxation by government bodies on lockdowns is slated to regain automotive sales by the end of 2021.
Favorable government initiatives will add growth opportunity for APAC industry
The Asia Pacific FPGA market is poised to expand at more than 16% CAGR during 2021 to 2027 on account of favorable government initiatives supporting semiconductor manufacturing in the region. For instance, in June 2020, the Taiwanese Government invested USD 334 million in subsidies to attract foreign chip-makers and semiconductor manufacturers to establish semiconductor manufacturing facilities in the country. Such supportive government initiatives will fuel the regional growth.
Key players operating in the field programmable gate array market include Achronix Semiconductor Corp., Cologne Chip AG, Gidel, Xilinx, Microchip Technology, Texas Instrument Incorporated, Intel Corporation, and Cyprus Semiconductor Corporation, among others. These companies are focusing on inorganic growth strategies to stay competitive in the market.
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