Digital IC Market - Forecast(2024 - 2030)

Report Code: ESR 0653 Report Format: PDF + Excel

Digital IC Market Overview

The Digital IC Market size is forecast to reach US$96.28 billion by 2027, growing at a CAGR of 7.85% from 2022 to 2027. Technological developments and the growing demand for consumer electronics such as smartphones, laptops and PCs; the miniaturization of these devices have tremendously boosted the Digital IC industry forward. New trends such as the Internet of Things, cloud computing and big data are rapidly evolving, and it is expected that they will drive digital integrated circuit technology in new directions. Digital ICs are being used across all industry verticals and new technologies and components such as magnitude comparators and priority encoders are being used to increase the functionality of these Digital ICs. Due to technological advancements, Digital ICs are now being manufactured by using gallium arsenide as their primary material. Gallium arsenide as a material has some technical advantages over silicon as electrons can travel faster through the crystalline structure of gallium arsenide in comparison to silicon. Microprocessor chips such as digital signal processors are also a primary component of Digital ICs as they increase the operational efficiency of the ICs. These factors have revolutionized Digital ICs and as a result, create a positive influence on the Digital IC Industry Outlook over the forecast period.

Report Coverage

The report: “Digital IC Industry Outlook – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Digital IC industry.

By Raw Material: Gallium arsenide, Silicon wafers and Others.
By Component: Microcontroller, Memory (Flash, EPROM, DRAM, Others), Digital Signal Processors and Others.
By End-use Industry: Communication Devices, Industrial, Automotive, Consumer Electronics and Others.
By Geography: North America (the U.S., Canada, Mexico), South America (Brazil, Argentina, Others), Europe (UK, Germany, France, Italy, Spain, Others), APAC (China, Japan, South Korea, India, Australia, Others) and RoW (Middle East, Africa).

Key Takeaways

  • In the Digital IC market report, the digital signal processor is analyzed to grow at a significant rate with a CAGR of 8.01% due to increasing demand for high-performance chips, technological advancements and the adoption of internet protocols.
  • The Consumer electronics equipment industry is expected to grow at the highest rate with a CAGR of 8.29% owing to factors such as growing demand for miniaturized high-performance devices and the incorporation of IoT.
  • APAC region had the largest share in the global Digital IC Market size, owing to factors such as growing demand for consumer electronics and wireless infrastructure.

Global Digital IC Market Value Share, By Region, 2021 (%)

Digital IC Market

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Digital IC Market Segment Analysis - by Component

By Component, the Digital Signal Processors in Digital IC Market report is analyzed to grow with the highest CAGR of 8.01% during the forecast period 2022-2027. The growing integration of high-performance or multi-channel digital signal processing algorithms, technological advancements in wireless infrastructure and increased adoption of internet protocols for communications are major factors boosting the digital signal processors segment in the Digital IC Market industry. In September 2021, Vivo announced the official launch of its first self-developed chip, the Vivo V1, which is an image signal processor with high computing power, low latency, low power consumption and other features. These developments will boost the demand for Digital ICs over the forecast period.

Digital IC Market Segment Analysis - by End-use Industry

Based on End-use Industry, the Consumer electronics equipment segment in the Digital IC Market report is analyzed to grow at the highest CAGR of 8.29% during the forecast period 2022-2027 owing to factors such as miniaturization of devices, incorporation of IoT and growing demand for high-performance devices. Components such as Magnitude comparators, Priority encoders help in making Digital ICs more efficient and powerful which are then being used in consumer electronics devices. According to the India Cellular & Electronics Association (ICEA), mobile phone production in India is expected to reach US$190 billion by 2025. As a result of this growing demand for consumer electronics, the demand for Digital ICs is increasing, thereby expanding the Digital IC market size.

Digital IC Market Segment Analysis - by Geography

APAC dominated the global market for Digital IC Market with a market share of 41% in 2021 and was also analyzed to have significant growth over the forecasting period. Growing demand for consumer electronics, significant investment in wireless infrastructure and increased semiconductor chip manufacturing operations are propelling the Digital IC industry growth in this region. According to the China Academy of Information and Communications Technology (CAICT), domestic smartphone shipments reached 342.8 million units in 2021, with an increase of 15.9% year-on-year growth. These factors will bolster the APAC region’s presence in the global Digital IC market.

Digital IC Market Drivers

Rising Data Traffic and incorporation of IoT-connected devices contribute to the Digital IC Industry growth

Increasing adoption of IoT-connected devices coupled with increasing data traffic is attributed to the growth of the Digital IC market. The adoption of Digital IC components such as magnitude comparators and priority encoders aid in meeting consumer requirements by providing high-speed data processing, lower power consumption, improved audio and video signal processing and many other benefits. According to Ericsson's mobility report, total mobile data traffic in India will reach 12EB per month in 2021, up from 9.4EB in the previous year. These factors will increase the demand for digital ICs, thereby positively influencing the Digital IC industry outlook.

The growing semiconductor industry and wide applications of integrated circuits across all industry verticals will drive the Digital IC Industry forward

As the demand for electronic devices is constantly rising, the demand for integrated circuits is also rising. Especially in developing regions, the demand for integrated circuits is so high because the integrated circuit is the primary component of the electronics manufacturing process. This factor in turn boosts the Digital IC market. In March 2022, EV Group and Teramount collaborated to implement innovative technologies for photonic integrated circuits. Developments such as these will further boost the Digital IC market.

Digital IC Market Challenges

Designing and programming complexities associated with Digital ICs act as major restraints in the market growth

Designing and programming architectures of Digital ICs includes complexities, which act as a major challenge, limiting the market growth. With the need to balance features such as low costs, low power consumption, high performance and optimized computing, chip designers find it difficult to design or program while maintaining these parameters, which limits the market growth. Furthermore, due to the high accuracy and precision required when manufacturing these ICs, there is a significant need for skilled and trained labor, raising the semiconductor manufacturer's production costs. These factors are major impediments to the Digital IC Market growth.

Digital IC Industry Outlook

Product launches, collaborations and R&D activities are key strategies adopted by players in the Digital IC Market. The top 10 companies in the Digital IC industry include:

1. Lattice Semiconductor Corporation
2. Taiwan Semiconductor Manufacturing Company
3. Samsung Corporation
4. Integrated Device Technology Inc.
5. Texas Instruments Inc.
6. Skyworks Solutions Inc.
7. Semiconductor NV
8. Micross Components Inc.
9. Toshiba Corporation
10. MediaTek Inc.

Recent Developments

  • In March 2022, Micross Components, Inc. announced a collaboration with Apogee Semiconductor. Micross and Apogee Semiconductor now offer various Digital ICs across multiple form factors including interface, logic and translation ICs.
  • In December 2021, Taiwan Semiconductor Manufacturing Company announced a collaboration with Sony and together they would invest US$7 billion to establish a chip manufacturing facility in Japan. These developments will boost Digital IC production and increase the market size.
  • In July 2019, Texas Instruments announced the release of C2000 microcontrollers with enhanced communication capabilities. This Digital IC will aid designers in their use of a single chip to improve connectivity.

Relevant Reports

Photonic Integrated Circuit (IC) & Quantum computing Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis

Report Code: ESR 0268

Analog Integrated Circuit Market - Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis

Report Code: ESR 0105

Digital Signal Processors Market- Industry Analysis, Market Size, Share, Trends, Application Analysis, Growth and Forecast Analysis

Report Code: ESR 0250

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1. Digital IC Market - Market Overview
    1.1 Definitions and Scope
2. Digital IC Market - Executive Summary
    2.1 Market Revenue, Market Size and Key Trends by Company
    2.2 Key trends by Application
    2.3 Key trends segmented by Geography
3. Digital IC Market – Market Landscape
    3.1 Comparative Analysis
        3.1.1 Product/Company Benchmarking - Top 3 Companies
        3.1.2 Top 5 Financial Analysis
        3.1.3 Market Value Split by Top 5 companies
        3.1.4 Patent Analysis
        3.1.5 Pricing Analysis
4. Digital IC Market – Industry Market Entry Scenario Premium (Premium)
    4.1 Regulatory Scenario
    4.2 Ease of Doing Business Index
    4.3 Case Studies (3 Case Studies)
    4.4 Customer Analysis (5 Key Customers for Top 5 Companies)
5. Digital IC Market – Startup Company Scenario (Premium)
    5.1 Venture Capital and Funding Scenario
    5.2 Startup Company Analysis (3 Key Startups Analyzed)
6. Digital IC Market - Market Forces
    6.1 Market Drivers
    6.2 Market Challenges
    6.3 Porter's five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. Digital IC Market – By Strategic Analysis (Market Size - $Million/Billion)
    7.1 Value Chain Analysis
    7.2 Opportunities Analysis
    7.3 Product Life Cycle
    7.4 Suppliers and Distributors
8. Digital IC Market - By Raw Material (Market Size - $Million/Billion)
    8.1 Gallium Arsenide
    8.2 Silicon Wafers
    8.3 Others
9. Digital IC Market - By Component (Market Size - $Million/Billion)
    9.1 Microcontroller
    9.2 Memory
        9.2.1 Flash
        9.2.2 EPROM
        9.2.3 DRAM
        9.2.4 Others
    9.3 Digital Signal Processors
    9.4 Others
10. Digital IC Market– By End-use Industry (Market Size - $Million/Billion)
    10.1 Communication Devices
    10.2 Industrial
    10.3 Automotive
    10.4 Consumer Electronics
    10.5 Others
11. Digital IC Market – By Geography (Market Size - $Million/Billion)
    11.1 North America
        11.1.1 the U.S.
        11.1.2 Canada
        11.1.3 Mexico
    11.2 South America
        11.2.1 Brazil
        11.2.2 Argentina
        11.2.3 Chile
        11.2.4 Columbia
        11.2.5 Rest of South America
    11.3 Europe
        11.3.1 the UK
        11.3.2 Spain
        11.3.3 Italy
        11.3.4 the Netherlands
        11.3.5 France
        11.3.6 Germany
        11.3.7 Rest of Europe
    11.4 APAC
        11.4.1 China
        11.4.2 Japan
        11.4.3 Australia
        11.4.4 India
        11.4.5 Singapore
        11.4.6 South Korea
        11.4.7 Malaysia
        11.4.8 Rest of APAC
    11.5 Rest of the World
        11.5.1 Africa
        11.5.2 the Middle East
12. Digital IC Market - Entropy
13. Digital IC Market - Industry Competition Landscape (Premium)
    13.1 Market Share Global (10 Companies at Global Level)
    13.2 Market Share by Region (5 Companies Per Region)
    13.3 Market Share by Country (5 Companies per Country. Covering 10 Key Countries – the U.S., Canada, Brazil, Germany, France, UK, China, Japan, India, Middle East)
    13.4 Market Share by Type/End-use Industry (5 Companies per Type)
    13.5 Competition Matrix (Top 10 Global Companies)
14. Digital IC Market - Key Company List by Country Premium (Premium)
(Up to 5 Companies per Country for 10 Countries - the U.S., Canada, Brazil, Germany, France, UK, China, Japan, India and Middle East - Tentative: 50 Companies Subject to Availability)
15. Digital IC Market Company Analysis (Market Overview, Product Portfolio, Revenue, Developments)
    15.1 Company 1
    15.2 Company 2
    15.3 Company 3
    15.4 Company 4
    15.5 Company 5
    15.6 Company 6
    15.7 Company 7
    15.8 Company 8
    15.9 Company 9
    15.10 Company 10
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