Overview of the global 3D semiconductor packaging market

Technavio’s market research analyst predicts that the global 3D semiconductor packaging market will grow at a significant CAGR of just over 16% during the forecast period. One of the key drivers of this market is the need to control chip design costs. With the advent of technologies like the Internet of Things, it is becoming difficult to develop electronic devices that can accommodate evolving technologies. High design costs restrict manufacturers from using aggressive pricing strategies. 3D semiconductor packing is helping vendors come up with practical manufacturing designs which then help to keep prices in check and propel market growth during the forecast period.

A significant trend spurring the market growth of 3D semiconductor packaging is the increasing demand for miniaturized electronics.  Samsung and Apple are manufacturing compact devices which consume less power as demand for low-cost, high-performance devices is on the rise. 3D packaging plays a crucial role in miniaturized electronics as it allows manufacturers to use through silicon via (TSV) and 3D stacking to reduce the size of products and also improve performance with better functionality.

Segmentation by application and analysis of the 3D semiconductor packaging market

• Consumer electronics
• Others

The consumer electronics segment of the market is the largest and is expected to reach a market value of around USD 8 billion by the end of the forecast period. Increased demand for smartphones has led to growing demand for ICs which are its core components. This has resulted in high demand for 3D packaging equipment as ICs require robust packaging technology to ensure small size and high performance. The development of the 3D semiconductor packaging technology market has been, to a greater extent, supported by the development of packaging materials such as printed wiring board.

Geographical segmentation and analysis of the 3D semiconductor packaging market

• Americas
• APAC
• EMEA

The APAC region dominates the global 3D semiconductor packaging market and will grow at a CAGR of close to 18% by the end of the forecast period. The region contributed 69% of the market's total revenue in 2015 mainly due to the high concentration of ODMs and OEMs.  Moreover, countries such as China, Taiwan, South Korea, and Japan are home to firms that have a strong hold on manufacturing consumer electronics.

Competitive landscape and key vendors

The global 3D semiconductor packaging market has a number of well-established global and regional players. The market is dominated by a few major suppliers and buyers have moderate bargaining power. Global and local vendors are adopting new technologies to gain an edge and market share over their competitors. The potential for growth is pretty high due to the increasing adoption of 3D semiconductor packaging by industries across the globe. There is no adequate substitute for 3D packaging in this market which lets equipment manufacturers set their prices. Buyers can choose suppliers based on product quality. The market barriers to entry are pretty high which is restricting the entry of new vendors.

Key vendors in this market are -

• Amkor Technology
• SUSS Microtek
• EV Group
• Tokyo Electron

Other prominent vendors in this market are ACCRETECH Tokyo Seimitsu, Rudolph Technologies, SEMES, Ultratech, and Ulvac.

Key questions answered in the report include

• What will the market size and the growth rate be in 2020?
• What are the key factors driving the global 3D semiconductor packaging market?
• What are the key market trends influencing the growth of the global 3D semiconductor packaging market?
• What are the challenges to market growth?
• Who are the key vendors in the global 3D semiconductor packaging market?
• What are the market opportunities and threats faced by the vendors in the global 3D semiconductor packaging market?
• Trending factors influencing the market shares of the Americas, APAC, and EMEA.
• What are the key outcomes of the five forces analysis of the global 3D semiconductor packaging market?

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