According to a recent report published by Allied Market Research, titled, “Rugged IC Market By Level, Application, and End Use: Global Opportunity Analysis and Industry Forecast, 2021–2030”, the global rugged IC market was valued at $811.0 million in 2020, and is projected to reach $1,551.8 million by 2030, registering a CAGR of 6.9% from 2021 to 2030.
Growing development of smart cities, increasing demand and growth of rugged loT, increasing in rugged IC market trends and increasing adoption of ruggedized computers are the factors that drive growth of the market. However, high production cost of rugged devices hinder the market growth. Rise in need for reliable electrical equipment for military and aerospace industries is expected to be opportunistic for the rugged IC market growth.
By level, it is fragmented into semi-rugged, fully-rugged, and ultra-rugged. The fully-rugged segment was the highest revenue contributor accounting for $306.5 million in 2020, and is expected to witness the fastest growth at a CAGR of 8.4% during the forecast period. By application, the rugged IC market is divided into mobile phones, tablets, scanners, and others. The mobile phones segment was the highest revenue contributor accounting for $276.8 million in 2020. However, the others segment is expected to witness the fastest growth at a CAGR of 8.5% during the forecast period.
By end use, the market is divided into consumer electronics, automotive, healthcare, industrial, manufacturing, and others. The healthcare sector is expected to be the fastest growing segment registering a CAGR of 11.6% during the forecast period. However, the consumer electronics segment is the highest revenue contributor that accounted for $202.0 million in 2020.
By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. North America was the highest revenue contributor that was valued at $285.1 2 million in 2020. This region is further expected to attain a market value of $ 410.6 million by 2030 to grow at a CAGR of 3.8%. Moreover, Asia-Pacific is expected to register highest CAGR during the forecast period.
COVID-19 Impact Analysis
COVID-19 has caused the overall semiconductor industry to mobilize quickly and make short-term decisions with long-term implications. Semiconductor companies operate in a complex ecosystem, working across the value chain with numerous raw materials, assembly, test, package, and equipment suppliers & partners across the globe.
Demand from the IT & telecommunication segment is expected to increase, owing to factors such as rise in broadband usage, higher demand for cloud services, and video streaming. In addition, in the medium to long term, COVID-19 is expected to further push the need for digital transformation and technologies, such as 5G, IoT, AI, and intelligent edge computing for future optimization.
Some of the rugged IC manufacturers have witnessed temporary delays in production, increased costs, and revenue losses due to the pandemic.
The manufacturing sector witnessed severe loss, and thus no new orders have been placed during the pandemic. In addition, this impact is estimated to continue till 2021. Moreover, international consumer electronics and rugged IC markets are in a very weak state, owing to lockdowns imposed to tackle the pandemic. Although the markets in the U.S. and Europe witnessed mild recovery in the second half of 2020, they are still significantly down on pre-crisis levels. Therefore, the rugged IC market is facing major obstacles from the emergence of COVID-19 pandemic.
The pandemic is impacting production process of several industries, including semiconductor and electronics. Trade barriers are further constraining the demand and supply outlook. The overall production process is adversely affected as governments of different countries have already announced total lockdown and temporary shutdown of industries.
Key Findings of the Study
- The fully rugged segment is expected to generate the highest revenue during the forecast period.
- The mobile phones segment is expected to register the highest revenue during the forecast period.
- The consumer electronics segment is expected to register the highest revenue during the forecast period.
- North America is expected to register the highest revenue during the forecast period.
The key players profiled in the report include General Dynamics Corporation, Crystal Group, Richtek Technology Corporation, Qualcomm, Honeywell International Inc., Infineon Technologies AG, Analog Devices Inc., NXP Semiconductors N.V., Texas Instruments Inc. and ST Microelectronics. These key players have adopted several strategies, such as new product launch & development, acquisition, partnership & collaboration, and business expansion, to increase their footprint in the rugged IC industry during the forecast period.