by Analog ICs find applications in various end-use industries such as consumer electronics, IT & telecom, automotive, healthcare, aerospace & defense, and others. Analog ICs play a vital role in signal conditioning, power management, sensor interfaces, and data converters. They are utilized for noise filtering, amplification, isolation, conversion of analog signals into digital signals and vice versa. With the increasing deployment of advanced technologies such as AI, IoT, augmented/virtual reality, autonomous vehicles, and smart cities, the demand for Analog ICs is expected to surge considerably.
The global Analog IC Market size is estimated to be valued at US$ 72.56 Bn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The increasing focus on miniaturization and integration of analog ICs propels market growth. Analog ICs find applications in diverse end-use industries owing to their small size and low power consumption. Moreover, the emergence of 5G networks and new wireless infrastructure has created opportunities for analog IC suppliers. 5G networks require advanced RF technology and mixed-signal interface ICs to support wide bandwidth, low latency, and massive device connectivity. This will augment the demand for Analog ICs such as amplifiers, filters, modulators, demodulators, and others during the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the Analog IC market is moderate. New companies can enter the market but they will have to invest heavily in R&D. Established players have strong brand reputation and economies of scale which makes market entry challenging for new players.
Bargaining power of buyers: The bargaining power of buyers in the Analog IC market is high. Buyers have a large number of options available due to presence of many established players. Buyers can negotiate on price and demand better quality and service.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Key components raw materials required for Analog IC manufacturing such as silicon wafers are available from few specialized global suppliers which gives them some control over pricing.
Threat of new substitutes: Threat of substitutes is low. There are no close substitutes for Analog IC as of now however with advancement in digital technology, some analog functions are migrating to digital domain.
Competitive rivalry: The competitive rivalry in the market is high. The market is dominated by few large players however regional and local players also compete on quality, innovation and pricing. Players differentiate based on product portfolio, technology, and customer relationships.
Key Takeaways
The global Analog IC market is expected to witness high growth. The global Analog IC Market is estimated to be valued at US$ 72.56 Bn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030.
North America is projected to dominate the market during the forecast period. Growing demand for electronics and government support for semiconductor industry will drive the regional market. Asia Pacific is expected to be the fastest growing region in the Analog IC market due to presence of emerging countries like China and India with expanding electronics manufacturing hubs. Rapid industrialization and increasing electronics adoption is fueling the regional demand.
Key players: Key players operating in the Analog IC market are Texas Instruments Incorporated, Renesas Corporation, Infineon Technologies AG, Qualcomm Technologies, Inc., NXP Semiconductors, ON Semiconductor, STMicroelectronics, Skyworks Solutions, Inc., Analog Devices, Inc., and Maxim Integrated Products Inc. Texas Instruments holds the leading market share.
