by Analog integrated circuits or analog IC are electronic circuits that have continuous voltage and current signals in contrast to digital circuits that deal only with discrete voltage levels. Commonly used analog ICs include op-amps, comparators, amplifiers, and data converters. They are extensively used in various consumer electronic devices such as smartphones, tablets, computers, televisions, wearables, and others. The continuing miniaturization of electronic devices has increased the adoption of analog ICs in entertainment, communication, and computing applications. They play a vital role in signal processing, power management, audio/video signal processing, and other functions enabling enhanced functionality in consumer gadgets.
The global analog IC market is estimated to be valued at US$72.56 billion in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing demand for consumer electronics is one of the major drivers of the analog IC market. According to the International Data Corporation (IDC), worldwide shipments of smartphones reached 1.38 billion units in 2020 and are likely to surpass 1.5 billion units by 2023. The increasing penetration of smartphones and various other consumer electronic devices such as laptops, wearables, home appliances, and gaming consoles has augmented the consumption of analog ICs. Furthermore, the rising integration of advanced technologies such as AI, Internet of Things (IoT), and 5G networks in consumer gadgets has fueled the adoption of more precise and power-efficient analog ICs. For instance, 5G-enabled smartphones require sophisticated RF, power management, and data converter analog ICs for enhanced signal processing capabilities. The ongoing transition towards connected devices and smart home appliances is also propelling the analog IC market growth over the forecast period.
Segment Analysis
The analog IC market is dominated by the data converter sub segment which holds around 30% market share. Data converters help in converting analog signals into digital signals and vice versa. They play a vital role in interfacing the analog world with digital circuits in applications like consumer electronics, industrial, and automotive. The demand for data converters is increasing with the proliferation of IoT devices and implementation of next generation wireless technologies like 5G which require fast and high performance data conversion.
PEST Analysis
Political: The governments across regions are introducing initiatives to encourage local manufacturing of analog ICs. This helps in reducing import dependence and creating local employment opportunities. Some regions have also introduced export incentives for analog IC producers.
Economic: The global economy continues to witness mixed trends. However, certain industries like automotive, consumer electronics and healthcare are exhibiting growth which helps in driving the demand for analog ICs used in their products. Rising disposable incomes in developing nations are also augmenting the sales of electronic products using analog ICs.
Social: The rapid adoption of technology in daily life has resulted in growing dependency on electronic devices and connectivity. Technologies like 5G and IoT are enabling more applications and conveniences for social interaction, entertainment and productivity. This acts as a driver for the analog IC market.
Technological: Emerging applications based on concepts like AI, ML and advanced analytics are presenting new opportunities for analog IC design and development. Technologies such as 5G and edge computing are raising performance requirements which analog IC producers are meeting with innovative solutions around data conversion speed, power efficiency and form factors.
Key Takeaways
Global Analog IC Market Size is expected to witness high growth during the forecast period supported by the proliferation of IoT devices and networks as well as rising adoption of technologies like autonomous vehicles, 5G, and cloud computing.
The Asia Pacific region dominated the analog IC market in 2021 owing to presence of several analog IC design houses as well as vast consumer electronics manufacturing base in countries like China, South Korea, Taiwan and India.
Key players operating in the Analog IC market are Illumina, Inc., Thermo Fisher Scientific, Inc., Qiagen N.V., F. Hoffmann-La Roche Ltd., Foundation Medicine, Inc. (Roche), Invitae Corporation, NeoGenomics Laboratories, Inc., Myriad Genetics, Inc., Genomic Health, Inc. (Exact Sciences Corporation), Caris Life Sciences, ArcherDX, Inc. (Invitae Corporation), Guardant Health, Inc., Personal Genome Diagnostics Inc., Biocept, Inc., Tempus Labs, Inc. Major players are focusing on expanding their product portfolio and geographical presence through mergers and acquisitions to gain leadership positions in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
