LONDON--(BUSINESS WIRE)--Technavio analysts forecast the global application specific IC market to grow to USD 12.13 billion by 2021, at a CAGR of more than 17% over the forecast period, according to their latest report.
The research study by Technavio on the global application specific IC (ASIC) market for 2017-2021 provides detailed industry analysis based on the design (full custom, standard cell, and gate array), product (smartphone, TV, PC, automotive, tablet, laptop, smartwatch, smart band, and AR and VR), and geography (APAC, the Americas, and EMEA).
|Application specific integrated circuit (IC) is a chip that is designed to improve the performance of general-purpose CPUs. ASICs are hardwired to do a specific job and do not incur the overhead of fetching and interpreting stored instructions. Smartphones are the largest adopters of ASICs, where they are used for Bluetooth functions, charging system, transmission protocol, speed, and better performance.|
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Technavio analysts highlight the following three factors that are contributing to the growth of the global application specific IC market:
- Declining average selling price (ASP) of electronic devices
- Growing demand for customizable ICs
- Increased use of consumer electronics
Declining average selling price (ASP) of electronic devices
“The decline in selling prices combined with the short replacement cycles of portable electronic devices such as smartphones, wearable, tablets, and laptops are creating a high demand for ASICs supporting new features and technologies,” says Navin Rajendra, a lead analyst at Technavio for embedded systems research.
For instance, the smartphone prices were nearly halved during 2012-2016, further adding to the growth of the market. Vendors are introducing application specific ICs to cater to the evolving requirements and technologies of consumer electronic devices.
Growing demand for customizable ICs
The evolving requirements of manufacturers have given rise to customized ICs, which can be modified and tweaked per the product demand. The rising demand for these customizable ICs from the industrial, automotive, healthcare, and other industries will contribute to the growth of the ASICs market over the forecast period.
The healthcare sector uses these ICs in different equipment such as electrocardiography (ECG) machine, ultrasound machine, digital X-ray, and computer tomography (CT) machine. Also, ASICs are becoming denser with the number of transistors being installed in wafers, increasing its usage in the market.
Increased use of consumer electronics
Consumer electronics encompasses smartphones, tablets, laptops, wearables, gaming consoles, digital cameras, and TVs. The advances in technologies such as touch screen monitors and displays, flat screens, and Bluetooth functions is creating a demand for a greater number of ICs.
“The growing adoption of smartphones and increasing competition among vendors is driving the demand for ASICs. The rising demand has also paved the way for advances in technology used in ASICs, which is further rising its adoption,” says Navin.
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