Application Specific Integrated Circuit (ASIC) Market Size

Application Specific Integrated Circuit (ASIC) Market size was valued at USD 16.4 billion in 2022 and is anticipated to grow at a CAGR of 5.7% between 2023 and 2032. The rapid adoption of AI & ML technologies has fueled the demand for ASICs. These applications require dedicated hardware to efficiently perform complex computations. ASICs designed specifically for AI & ML tasks, such as neural network inference & training, offer higher processing power and improved energy efficiency compared to general-purpose processors. The rising demand for ASICs to optimize AI & ML tasks can be attributed to the expansion of AI & ML applications across various industries.

Application Specific Integrated Circuit (ASIC) is a customized integrated circuit designed for a specific application or function. It integrates various components onto a single chip, resulting in improved performance, power efficiency & cost-effectiveness for the intended application.

Design complexities and longer time-to-market can hinder market growth during the forecast period. The designing of ASICs is a complex process that requires expertise in various domains including system architecture, hardware design, verification, and software integration. Designing a complex ASIC involves the management of trade-offs between performance, power consumption, area, and cost. The increasing complexity of designs coupled with the need for rigorous verification can lead to longer development cycles and delays in bringing ASICs to market. These factors are hindering the Application Specific Integrated Circuit market growth.

COVID-19 Impact

The COVID-19 pandemic impacted several markets including the Application Specific Integrated Circuit (ASIC) market in 2020. The semiconductor industry faced significant disruptions in global supply chains during the pandemic. Factory shutdowns, restrictions on transportation, labor shortages, and reduced manufacturing capacities impacted the production & distribution of ASICs. These disruptions resulted in delays in manufacturing & delivery, affecting the overall market growth.

Application Specific Integrated Circuit (ASIC) Market Trends

The advent of Electric Vehicles (EVs), Advanced Driver Assistance Systems (ADAS), and autonomous driving technologies has led to a significant transformation of the automotive industry, propelling the market for ASICs. ASICs play a vital role in enabling the sophisticated functionalities required in these applications such as sensor fusion, real-time processing, and communication systems. The demand for ASICs in automotive electronics is expected to grow as the industry continues to evolve. The rising demand for power-efficient ASIC solutions can be attributed to the increasing focus on energy efficiency and sustainability. ASICs can be customized to minimize power consumption while maintaining high performance, making them attractive for applications where energy efficiency is critical. Energy-efficient ASICs are also critical for data centers and cloud computing infrastructure, where the reduction in power consumption is a priority.

Application Specific Integrated Circuit Market Analysis

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Based on end use, the application specific integrated circuit market is divided into telecommunications, consumer electronics, automotive, healthcare, industrial, aerospace & defense, and others. The industrial segment is expected to grow at a highest CAGR of over 6.5% from 2023 to 2032. Industrial applications often require real-time data processing for critical operations, quality control, predictive maintenance, and optimization. ASICs offer high-speed & low-latency processing capabilities that enable real-time data analysis and decision-making, thereby driving the growth of this segment. Industrial systems often require robust safety & security measures to ensure the protection of assets, personnel, and critical infrastructure. ASICs can incorporate security features, such as encryption, authentication, and secure communication protocols, to address these requirements. Additionally, ASICs can also integrate safety functions, such as fail-safe mechanisms and real-time monitoring, to ensure the safe operation of industrial systems.

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Based on type, the application specific integrated circuit market is segmented into full custom ASIC, semi-custom ASIC, and programmable ASIC. The semi-custom ASIC segment held a market share of over 45% and revenue of over USD 8 billion in 2022. It is expected to grow at a lucrative pace through 2032 as semi-custom ASICs provide a balance between customization and cost-effectiveness. They offer a level of customization that allows companies to tailor the ASIC design to their specific requirements without incurring the high costs. This flexibility makes semi-custom ASICs an attractive option for companies looking for optimized solutions while managing development costs. Moreover, semi-custom ASICs offer shorter development cycles and faster time-to-market compared to fully custom ASICs. They leverage pre-designed and pre-verified IP blocks & subsystems, which significantly reduces the design & verification time. This streamlined process increases the pace at which companies launch their ASIC-based products in the market, allowing them to seize better market opportunities and gain a competitive edge.

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Asia Pacific held a significant market share of over 30% in 2022. Asia Pacific is at the forefront of adopting advanced technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), 5G, and autonomous vehicles. According to GSMA, in 2022, 5G adoption in China was 36%, which is expected to reach over 88% in 2030. These technologies rely on high-performance & power-efficient ASICs to enable their functionalities. The growing adoption of these technologies across various industries in the region is fueling the demand for ASICs.

Application Specific Integrated Circuit Market Share

Major companies operating in the Application Specific Integrated Circuit market are

• Infineon Technologies AG
• OMNIVISION
• Tekmos Inc.
• Intel Corporation
• Honeywell International Inc.
• Renesas Electronics Corporation
• STMicroelectronics
• Texas Instruments Inc.

The competitive landscape is characterized by continuous innovations as companies strive to improve their offerings with new technologies, integrations, and partnerships.

Application Specific Integrated Circuit (ASIC) Industry News:

• In April 2022, Intel Corporation launched Intel Blockchain ASIC that offers energy-efficient hashing needed for proof-of-work consensus networks. Intel’s Blockchain ASIC will offer proof-of-work algorithms which is compatible with SHA-256 hashing and ASIC-based systems the computing power and the energy efficiency required to achieve sustainability and scalability.
  

The Application Specific Integrated Circuit (ASIC) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue & volume (USD Million) from 2018 to 2032, for the following segments:

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By Type

• Full Custom ASIC
• Semi-custom ASIC
• Cell-based
• Array-based

• Programmable ASIC
• Field-Programmable Gate Array (FPGA)
• Programmable Logic Device (PLD)

By End Use

• Telecommunications
• Consumer Electronics
• Automotive
• Healthcare
• Industrial
• Aerospace & Defense
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Taiwan
• Latin America
  • Brazil
  • Mexico
• MEA
  • South Africa
  • Saudi Arabia
  • UAE