Enjoy complimentary customisation on priority with our Enterprise License!
The application-specific IC (ASIC) market share is expected to increase by USD 9.15 billion from 2020 to 2025, and the market's growth momentum will accelerate at a CAGR of 8.32%.
This application-specific IC (ASIC) market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers application-specific IC (ASIC) market segmentation by product (smartphones, TVs, PCs, automotive, and others), type (full-custom design, standard cell-based, and gate-array based), and geography (APAC, North America, Europe, South America, and MEA). The application-specific IC (ASIC) market report also offers information on several market vendors, including Analog Devices Inc., Broadcom Inc., Infineon Technologies AG, Intel Corp., Maxim Integrated Products Inc., MediaTek Inc., NXP Semiconductors NV, ON Semiconductor Corp., Renesas Electronics Corp., and STMicroelectronics NV among others.
Download the Free Report Sample to Unlock the Application Specific IC (ASIC) Market Size for the Forecast Period and Other Important Statistics
The growing demand for customizable ics is notably driving the application-specific ic (ASIC) market growth, although factors such as the cyclical nature of the semiconductor industry may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the application-specific ic (ASIC) industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.
Key Application Specific IC (ASIC) Market Driver
The growing demand for customizable ICs is a major factor driving the global application-specific IC (ASIC) market share growth. Customized ICs help manufacturers modify and tweak designs as per the function required, such as performance, accuracy, power, and size. For instance, the significant designing process of a customized IC includes architectural design, logic/circuit design, physical design, and physical verification. Hence, the increasing demand in the industrial, automotive, healthcare, and other industries, coupled with technological advances, contributes to the growth of the global application-specific IC (ASICs) market. In healthcare, customized ICs are used in different equipment such as electrocardiography (ECG) machines, ultrasound machines, digital X-rays, and computer tomography (CT) machines. Additionally, due to the increase in demand for compact electronic devices such as smartphones, laptops, and wearables, IC manufacturers must reduce the size of ICs. This has given rise to the increased demand for ASICs. ICs are customized mainly by focusing on technology and the device. Customized ICs have a higher versatility rate, and they enable rapid prototyping and easy debugging. Such factors have increased the penetration rate of ASICs in the market, thereby driving market growth.
Key Application Specific IC (ASIC) Market Trend
The growing adoption of system-on-chips (SoCs) in robotics is another factor supporting the global application-specific IC (ASIC) market share growth. Robotics is showing strong demand in various sectors, including automotive, electronics, healthcare, military, and defense. One of the significant segments witnessing the adoption of robotics is the process and discrete manufacturing, where firms are integrating robots in their production process. As the demand for robotics increases across industries, there is a growing need for robots to be integrated with the right processor architecture to maintain their functionality. To achieve this, SoCs, which provide a common embedded hardware and software platform, is being integrated into robots. Robots can be reused and scaled to reduce time-to-market and total cost of ownership. Robots also require a network interface, operating system drivers, machine learning framework, and others, which an SoC can provide. As a result of this, the growing adoption of robotics has significantly increased the demand for SOCs.
Key Application Specific IC (ASIC) Market Challenge
The cyclical nature of the semiconductor industry will be a major challenge for the global application-specific IC (ASIC) market share growth during the forecast period. This cyclicity of the semiconductor industry makes the industry highly volatile. As the semiconductor industry witnesses, high demand fluctuations owing to the factors like excess production capacity, obsolete products, availability of new upgraded products, and rapid price erosion of ICs affect the market drastically. The extreme fluctuations make it difficult for the players in the value chain to predict the market demand. This can often lead to excess inventory levels in times of low demand, or low inventory levels in times of high demand, thereby impacting the growth of the market. In addition, the cyclicity in the global semiconductor market is also due to the bullwhip effect. The demand fluctuation in the end-user industries results in high supply and demand fluctuations in the semiconductor supply chain. The market dynamics are still favorable for vendors operating in the market, which is attributed to strong demand-pull but not technology-push. However, the demand fluctuations in end-user industries will adversely affect the technological developments in the global application-specific IC (ASIC) market.
This application-specific IC (ASIC) market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.
Technavio categorizes the global application-specific IC (ASIC) market as a part of the global semiconductors market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the application-specific IC (ASIC) market during the forecast period.
The report analyzes the market's competitive landscape and offers information on several market vendors, including:
This statistical study of the application-specific IC (ASIC) market encompasses successful business strategies deployed by the key vendors. The application-specific IC (ASIC) market is fragmented and the vendors are deploying organic and inorganic growth strategies to compete in the market.
To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.
The application-specific IC (ASIC) market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.
Our report provides extensive information on the value chain analysis for the application-specific IC (ASIC) market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.
The value chain of the global semiconductors market includes the following core components:
The report has further elucidated on other innovative approaches being followed by manufacturers to ensure a sustainable market presence.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Five Forces Analysis
5 Market Segmentation by Product
6 Market Segmentation by Type
7 Customer landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Vendor Landscape
11 Vendor Analysis
12 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.
Get the report (PDF) sent to your email within minutes.