Analog integrated circuits or chips find wide application in communication systems and automobiles owing to their advantages over digital chips in processing continuous signals. They help efficiently manage power consumption and protocol translation between analog and digital domains.
The global Analog IC Market size is estimated to be valued at US$ 72.56 billion in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The incorporation of analog chips is growing significantly in communication devices and automobiles due to their indispensable role in processing continuous signals. Analog chips allow efficient power management and analog-digital conversion in smartphones, Wi-Fi routers, Bluetooth devices, and various automotive components such as infotainment systems and advanced driver assistance systems. The rising demand for improved connectivity and driver safety features in vehicles has also propelled the application of analog ICs. Growing deployment of 4G/5G networks and connected cars worldwide is anticipated to boost the demand for analog semiconductors over the forecast period.
SWOT Analysis
Strength: Analog ICs have wide applications in industrial, automotive and consumer electronics sectors. Their usage reduces design complexity and cost.
Weakness: Analog ICs have slower design cycles compared to digital ICs. They also face challenges related to miniaturization and integration at nanometer technology nodes.
Opportunity: Growing demand for IoT and AI devices will fuel the need for high-performance analog ICs. Advancements in mixed-signal processing and integrated solutions also provide opportunities.
Threats: Increasing digitization can reduce reliance on analog components in some applications. Intense competition among established players also poses a threat.
Key Takeaways
The global Analog IC market is expected to witness high growth over the forecast period. This can be attributed to factors such as proliferation of IoT devices, increasing automotive electronics integration, and demand for advanced consumer electronics. 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 7.5% over the forecast period 2023 to 2030.
North America is expected dominate the Analog IC market during the forecast period. This is attributed to presence of key players and strong manufacturing base for electronics in the region. Asia Pacific is expected emerge as the fastest growing region supported by rising electronic goods manufacturing in China, India, Taiwan and South Korea.
Key players: Key players operating in the Analog IC market are Texas Instruments Incorporated, Renesas Corporation, Infineon Technologies AG, Qualcomm Technologies, Inc., NXP Semiconductors, ON Semiconductor, STMicroelectronics, Skyworks Solutions, Inc., Analog Devices, Inc., and Maxim Integrated Products Inc. The market leaders are focusing on developing innovative products through investments in R&D to gain competitive advantage.