At the beginning of 2020, the
global economic conditions indicated a single-digit percentage sales growth in
the IC market after it fell by 15% in 2019. Yet, the world changed abruptly in
the Q1 of 2020 with the rapid outbreak of the coronavirus pandemic as the world
shut down a majority of the countries and brought the global markets to a
standstill from March 2020.
The demand for integrated
circuits has a direct impact on the global semiconductor market as ICs and
electronic discrete components like transistors and diodes are made of
semiconductors. Integrated Circuits are manufactured on a single piece of
material that has semiconductor properties. One may have heard of two types of
ICs: Analog and Digital. Analog ICs can use a spectrum of signals while digital
ICs handle discrete signals such as binary values.
Some of the top integrated
circuit companies in the world include Texas Instruments, Analog Devices, Derf
Electronics, Infineon, NXP Semiconductors, Renesas, STMicroelectronics etc.
Factors Driving Growth In The Global IC Market
The rising use of next-gen mobile
networks like 4G and 5G needs the installation of new infrastructure. Chipsets
like radio frequency integrated circuits, systems on chips, cellular ICs,
application specific ICs and millimeter-wave integrated circuits are chiefly
used for 5G infrastructure.
As a result, there is high growth
indicated for the analog IC market. Integrated circuit Market research reports
indicate that the deployment of 5G will be the demand driver for semiconductors
driving revenue from US $422.8 billion in 2019 to US $448 billion in 2020.
Growth in the semiconductor industry
has also enabled advances in automotive devices. The Automotive Integrated
Circuits market is projected to reach $89,140 million by 2025. Automotive IC
can be customized for specific application in a vehicle. Innovation in
technology has enabled automobile companies to assemble various applications
within a single chip.
Additionally, the rise in
adoption of the Internet of Things (IoT) is also a factor driving the growth
for ICs. In a sense, ICs allow us to understand and transmit intelligence and
data. IoT is predicted to increase the demand in the integrated circuit market
owing to the many benefits of using analog ICs.
Analog ICs can be used across a
range of real-time and connected devices and apps. They are efficient in terms
of power consumption features and signal processing features required for an
automated devices ecosystem.
In fact, many reports suggest that there will be 25 billion internet connected devices by 2021. But
behind each of these devices will be ICs that have the embedded technology to
communicate and sense or respond to the environment.
The increased adoption of IoT
devices will increase the demand for ICs and it is expected to fuel growth in
the global integrated circuits market. For a detailed Ic Market research report, Follow VLSIresearch.
