According to a new report published by Allied Market Research, titled, “Embedded Die Packaging Technology Market by Platform, and Industry Vertical: Global Opportunity Analysis and Industry Forecast, 2021–2030,” the global embedded die packaging technology market size was valued at $63.93 million in 2020, and is projected to reach $311.41 million by 2030, registering a CAGR of 18.2% during the forecast period. Asia-Pacific is expected to be the leading contributor toward the embedded die packaging technology market during the forecast period, followed by LAMEA and Europe.
Embedded die packaging technology can be explained as the process of positioning or molding the components or ICs that are on an internal layer of an organic circuit board, unit, or chip package, such that it is hidden inside the complete structure, in spite of being connected on the top or bottom. The embedded die packaging technology provides a reduced form-factor, improved thermal performance, enhanced integration capacity, and less inductance through advanced manufacturing chain.
Growth of the global Embedded Die Packaging Technology market is anticipated to be driven by factors such as rise in need for miniaturization of electronic circuits in microelectronic devices. Embedded die packaging is a promising technology for emerging telecommunication applications, owing to its excellent electrical performance at high frequencies. Moreover, the demand for compact electronic circuitry is on a rise due to reduction in size of electronic devices for ease of access for users. This demand is catered by the embedded die packaging technology, which offers advantages such as increased functionality & efficiency of the electronic circuit, reduced size, signal inductance, and power inductance, improved reliability, and higher signal density. However, high initial cost acts as a major restraint for the global embedded die packaging technology industry. On the contrary, surge in adoption of smartphones and smart wearables is expected to create lucrative opportunities for the embedded die packaging technology market growth.
Moreover, developing nations tend to witness high penetration of embedded die packaging technology products, especially in the healthcare sector, which is anticipated to augment the market growth. Factors such as rise in adoption of fast & efficient semiconductor products accelerate the market growth.
The embedded die packaging technology market is segmented on the basis of platform, industry vertical, and region. By platform, the market is classified into embedded die in IC package substrate, embedded die in rigid board, and embedded die in flexible board. By industry vertical, the market is categorized into consumer electronics, IT and telecommunication, automotive, healthcare, and others. The embedded die packaging technology market forecast is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency. Also, the report provides a detailed embedded die packaging technology market analysis based on competitive intensity and how the competition will take shape in coming years.
By region, the embedded die packaging technology market trends have been analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific contributed maximum revenue in 2020. Also, between 2020 and 2030, the embedded die packaging technology market in Asia-Pacific is expected to grow at a faster rate as compared to other regions. This is attributed to increase in demand from emerging economical countries such as India, China, Japan, Taiwan, and South Korea.
COVID-19 Impact Analysis
The outbreak of COVID-19 significantly affected the electronics and semiconductor sector. Business and manufacturing units across various countries were closed, owing to increase in number of COVID-19 cases, and are expected to remain closed in first quarter of 2022. Furthermore, partial or complete lockdown disrupted global supply chain, posing challenges for manufactures to reach customers.
The COVID-19 pandemic is impacting the society and overall economy across the globe. The impact of this outbreak grows day-by-day and affects the overall business globally. The crisis is creating uncertainty in the stock market and is resulting in falling business confidence, massive slowing of supply chain, and increasing panic among customers.
Asia-Pacific and European countries under lockdowns have suffered major loss of business and revenue, owing to shutdown of manufacturing units. Operations of the production and manufacturing industries have been heavily impacted by the COVID-19 pandemic, which further impact the growth of the embedded die packaging technology market.
In addition, the COVID-19 pandemic has impacted the electronics sector as production facilities have stalled, which, in turn, boost demand for electronics and semiconductor products in these industries. Its major impact includes a large manufacturing interruption across Europe and interruption in Chinese parts exports, which hinder the embedded die packaging technology market opportunity globally.
Key Findings of Study
- The embedded die in IC package substrate segment is projected to be the major platform, followed by embedded die in rigid board during the forecast period.
- Asia-Pacific and North America collectively accounted for more than 75% of the embedded die packaging technology market share in 2020.
- Asia-Pacific is anticipated to witness highest growth rate during the forecast period.
- U.S. was the major shareholder in the North America embedded die packaging technology market, accounting for approximately 70% share in 2020.
- Depending on industry vertical, the consumer electronics segment generated the highest revenue in 2020. However, the others segment is expected to witness the highest growth rate in the future.
- Region wise, the embedded die packaging technology market was dominated by Asia-Pacific. Also, Asia-Pacific is expected to witness significant growth in the coming years.
The key players profiled in the report include Amkor Technology, Taiwan Semiconductor Manufacturing Company, ASE Group, AT & S, General Electric, Infineon, Fujikura, MicroSemi, TDK-Epcos, and Schweizer. These players have adopted various strategies such as collaboration, and product launch to strengthen their foothold in the industry.