May 21, 2024

Analog IC Market Poised for Robust Growth Due to Rising Demand for Precision Control Applications

Analog ICs are used to process real-world signals such as sound, power, light, temperature and motion into digital signals that can interface with machines and systems. Some of the key advantages of analog ICs include high accuracy, fast processing of real-time analog signals and lower power consumption compared to digital alternatives. The growing need for precise control and monitoring in industrial processes and consumer devices is fueling demand for analog ICs.

The Global analog IC market is estimated to be valued at US$ 83.59 Bn in 2024 and is expected to exhibit a CAGR of 16% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the analog IC market are Illumina, Inc., Thermo Fisher Scientific, Inc., Qiagen N.V., F. Hoffmann-La Roche Ltd., Foundation Medicine, Inc. (Roche), Invitae Corporation, NeoGenomics Laboratories, Inc., Myriad Genetics, Inc., Genomic Health, Inc. (Exact Sciences Corporation), Caris Life Sciences, ArcherDX, Inc. (Invitae Corporation), Guardant Health, Inc., Personal Genome Diagnostics Inc., Biocept, Inc., Tempus Labs, Inc. Key players are focusing on new product launches and mergers & acquisitions to expand their product portfolio and market share.

The analog IC market provides significant growth opportunities in consumer electronics, automotive, healthcare, industrial and telecommunications verticals. Analog ICs enable better functionality, higher accuracy and lower power consumption in various electronic systems across these industries.

Rising demand from the Asia Pacific region is expected to drive the global expansion of the analog IC market during the forecast period. Countries like China, India and Japan are manufacturing hubs for electronic devices and industrial equipment, which spurs the need for efficient and precise control technology like analog ICs.

Market drivers

The main driver for the analog IC market is the growing adoption of industrial automation and factory automation technologies globally. Analog ICs play a crucial role in process control, power monitoring, sensor interfacing and motion control applications in automated manufacturing facilities. They ensure smooth operations and precision across various automated assembly lines, production processes and industrial machinery. The rapid digitalization of factories is thus stimulating analog IC consumption substantially.

PEST Analysis

Political: The analog IC market is impacted by government regulations on semiconductor production and design. Trade policies between countries also affect business operations and supply chains.

Economic: Changes in global economic conditions influence demand for electronic products using analog ICs. The market experiences growth during periods of economic expansion when consumer spending increases.

Social: Rising consumer demand for smarter devices and connectivity drives innovation in industries using analog components. Social trends around internet of things and wireless connectivity expand the applications for analog ICs.

Technological: Advancements in circuit miniaturization and power efficiency continually enhance the performance of analog ICs. Technologies like 5G networks and AI/ML also rely on analog components to process real-world sensor data. Development of new materials expands the possible feature sizes and functionality on chips.

The geographical regions where the Analog IC Market Size  is concentrated in terms of value include North America, Europe and Asia Pacific. Within North America, the United States accounts for the largest share due to the presence of several analog chip design companies and consumer electronics manufacturers. Major countries driving the Europe market are Germany, United Kingdom and France. The Asia Pacific region led by China, India, Japan and South Korea is also a significant market for analog ICs globally due to large semiconductor manufacturing base and consumer market for electronics.

China has emerged as the fastest growing regional market for analog ICs over the forecast period between 2024 to 2030. This can be attributed to growing electronics manufacturing industry in China catering to both domestic and export demand. Government initiatives promoting industries like electric vehicles and industrial automation have increased the demand for analog components from Chinese companies. Additionally, rising spending power of the large consumer base in China is exponentially expanding the market for consumer electronics and smart devices.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it