According to a recent report published by Allied Market Research, titled, "ASIC Chip Market by Type and Application: Global Opportunity Analysis and Industry Forecast, 2018-2026," the global ASIC chip market was valued at $14.87 billion in 2018, and is projected to reach $28.05 billion by 2026, registering a CAGR of 8.61% from 2019 to 2026.
Application-Specific Integrated Circuit (ASIC) is the type of integrated circuit (IC) that is designed for a specific purpose or specific application. An ASIC can improve speed as it is specifically configured to perform the desired function. Such type of chip is highly customized to provide superior performance in specific applications. However, ASIC cannot be altered once it is put into production.
The global ASIC chip market size is expected to witness high growth rate during the forecast period, owing to high usage in smartphones, major rise in the portable electronic market, increase in popularity of Internet of Things (IoT), and robust demand in the automation industry. Further, emerging trend of wearable devices, connected cars, smart watches, connected homes, and others are expected to offer new opportunities for market growth. Technological development by the emerging economies in Asia-Pacific boosts the ASIC chip market growth.
The ASIC chips are majorly used in data centers. The application of chips in varied data center applications such as network systems, telecommunication switching, cellular base stations, optoelectronics, and wireless products act as an opportunity for the market. By keeping these beliefs in mind, semiconductor leaders can create a new road map for winning in AI. AI finds growth opportunities in the technology stack, focusing on the impact of AI on hardware demand at data centers. It then examines specific opportunities within compute, memory, storage, and networking and act as major ASIC chip market trends globally.
Asia-Pacific occupies a major percentage in the global ASIC chip market in developing countries such as India, China, and Indonesia, as these countries are technologically advanced countries, which exhibit high demand for smart technologies and offer lucrative opportunity in the region.
On the basis of ASIC Chip market analysis, the semi-based custom segment generated the highest revenue in 2018, followed by the programmable logic device segment. The growth of the European ASIC chip market is mainly driven by factors such as rise in demand for advanced technology in consumer electronics, infrastructure, automation system, among others across the region. The major factors that affect the adoption rate of ASIC chip in North America include technological advancements and ongoing R&D activities in autonomous vehicles, healthcare, cyber security, and security & access control. Moreover, rapid developments in the Middle East, in terms of technological developments, and medical facilities fuel the growth of the LAMEA market.
The growth of the ASIC Chip market is driven by substantial growth in advancements in chip technology, increase in demand for ASIC chip in consumer electronics and rise in demand for customizable ICs has boosted the growth of the global market. However, lack of skilled workforce and time consuming process act as major restraints, thereby hampering the market growth. Furthermore, rising adoption of ASIC chip in developing countries and increase in smart computing devices offer lucrative opportunities for the ASIC chip market globally.
Key Finding of The Asic Chip Market:
- By type, the semi-based custom segment generated the highest revenue in the market in 2018.
- By application, the data processing systems segment generated the highest revenue in the market in 2018.
- By region, Asia- Pacific generated the highest revenue in the market in 2018.
The key ASIC Chip market leaders profiled in the report include AMD, Texas Instruments, on semiconductor, Xilinx, Samsung electronics ltd., TSMC, intel corporation, Infineon technologies, Bitmain, NVIDIA. These key players adopted several strategies such as new product launch and development, acquisition, partnership & collaboration, and business expansion to increase their ASIC Chip market share.