System in Package (SiP) Technology Market report, published by Allied Market Research, forecasts that the global market is expected to garner $30 billion by 2022, registering a CAGR of 9% during the period 2016 - 2022.Asia-Pacific dominates the global market in terms of revenue, accounting for more than 50% share of the global market, followed by North America.
SiP Technology is widely used across the applications such as consumer electronics, telecommunication, and automotive. Presently, rise in demand for portable electronic devices and adoption of SiP in graphic cards and processors are some factors that majorly drive the market. Moreover, increase in demand for high frequency electronic gadgets is expected to provide lucrative opportunities to market players. 2.5-D IC Packaging is the leading segment in the global SiP market, and is expected to maintain this trend throughout the forecast period. However, 3-D IC Packaging segment is expected to witness significant growth in the future, owing to the compact size and low power consumption.
The flat package segment is projected to maintain its lead in the global SiP market, as this packaging type is used in various electronics applications such as computer, smart phone and other portable devices. Moreover, surface mount packaging is expected to grow owing to its stability and enhanced performance. Asia-Pacific region is the major revenue contributor in the flat package segment due to increase in demand for electronics applications with optimized size and low power consumption.
Among applications, consumer electronics segment dominated the global market in 2014, accounting for about 29% share. Boom in portable electronic market, increase in popularity of Internet of Things (IoT), and adoption of SiP technology in graphic cards and processors for real world gaming have fueled the market growth. However, telecommunication segment is expected to grow at the highest CAGR of 9.9% during the forecast period due to increase in demand for durable devices with enhanced efficiency.
Asia-Pacific region was the major revenue contributor in 2014, and is expected to maintain its dominance throughout the forecast period. This is attributed to the increase in number of electronic applications and data centers. Moreover, developments in consumer electronics and industrial systems would boost the growth of the SiP market, especially in the Asian countries, such as China, Japan, South Korea, and India.
North America is projected to be the fastest growing region during the analysis period, owing to increase in data centers, and rise in the adoption of SiP in graphic cards and processors. Moreover, technological advancements to overcome power loss issues in extreme conditions would offer lucrative opportunities for market players in the near future.
Key findings of System in Package (SiP) Technology Market
In 2014, 2.5-D IC Packaging segment dominated the global SiP market in terms of revenue, and is projected to grow at a CAGR of 9.3% during the forecast period.
Flat Packages segment dominates the global SiP market, accounting for about 32% share in 2014.
Flip Chip segment is expected to exhibit the fastest growth during the forecast period, owing to increase in applications such as computers and smart phones.
China is the major shareholder in the Asia-Pacific SiP market, accounting for about 42% share.
The key players operating in the SiP market have adopted new product launch as their preferred strategy to expand their market foothold. The major players profiled in this report include Amkor Technology Inc., Fujitsu Ltd., Toshiba Corporation, Qualcomm Incorporated, Renesas Electronics Corporation, Samsung Electronics Co Ltd, Jiangsu Changjiang Electronics Technology Co., Ltd., ChipMOS Technologies Inc., Powertech Technologies Inc., and ASE Group.