June 16, 2024

Field Programmable Gate Array Market Is Driven By Increasing Demand For Reprogrammable Devices In Advanced Computing Applications

Field Programmable Gate Arrays (FPGAs) are integrated circuits that can be programmed and reprogrammed repeatedly after manufacturing. They allow logic blocks to be interconnected in different configurations and give users the capability to change circuits and hardware later in the design cycle. FPGAs find wide usage in data centers, financial services, consumer electronics, automotive, industrial, and telecommunications industries. Their programmable structure provides logic and interconnect resources that can be configured by customers or design engineers after manufacturing. This gives designers the flexibility to modify the design without requiring a new initial manufacturing process and allows updating field programmable gate array designs in the event of product changes or new specifications.

The global Field Programmable Gate Array Market is estimated to be valued at US$ 8251.88 Mn in 2023 and is expected to exhibit a CAGR of 8.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
There is increasing usage of FPGAs in artificial intelligence and machine learning applications for tasks like video processing, computer vision, and financial technology. Machine learning algorithms are computation-heavy and require powerful hardware accelerators. FPGAs can be reprogrammed and configured to efficiently run complex AI models with lower latency and higher throughput compared to CPUs and GPUs. The programmable nature of FPGAs also allows updating designs easily to support evolving machine intelligence algorithms. This is a major trend driving growth of the field programmable gate array market.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the field programmable gate array market is moderate as the industry requires high initial costs for research, development and production. However, new technological developments have lowered the entry barriers.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of a large number of vendors offering varied types of FPGA solutions. Buyers can negotiate on price and demand customized solutions.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as most components for FPGA manufacturing are available from multiple sources at competitive prices. However, high costs and resource requirements for chip fabrication give some bargaining power to suppliers.
Threat of new substitutes: The threat of substitutes is low as other programmable logic devices such as complex programmable logic devices (CPLDs) and application-specific integrated circuits (ASICs) are not close substitutes for the flexibility and re-usability offered by FPGAs.
Competitive rivalry: The competitive rivalry in the global field programmable gate array market is high due to the presence of many international and regional vendors offering varied FPGA solutions. Vendors compete on pricing, product innovation, quality, and customer support.

Key Takeaways

The global Field Programmable Gate Array Market Growth is expected to witness high. Regional analysis related content comprises Asia Pacific region is expected to dominate the FPGA market during the forecast period. The presence of key foundries in countries such as Taiwan, China, South Korea and Japan provides easy access to low-cost manufacturing capabilities to FPGA vendors in this region.

Key players related content comprises Key players operating in the field programmable gate array market are Xilinx Inc. (AMD Corporation), Intel Corporation, Quicklogic Corporation, GOWIN Semiconductor Corporation, Microchip Technology Incorporated, Lattice Semiconductor Corporation, Efinix Inc. and Achronix Semiconductor Corporation. Xilinx dominates the global FPGA market and offers devices across all major FPGA categories. Intel focuses on FPGAs for data centers and networks.

The global field programmable gate array market is expected to witness high growth. Increasing adoption of FPGAs in data centers, automotive, industrial, wireless communication and military & aerospace sectors is expected to drive market growth during the forecast period. The Asia Pacific region is expected to dominate the FPGA market during the forecast period. The presence of key foundries in countries such as Taiwan, China, South Korea and Japan provides easy access to low-cost manufacturing capabilities to FPGA vendors in this region. Key players operating in the field programmable gate array market are Xilinx Inc. (AMD Corporation), Intel Corporation, Quicklogic Corporation, GOWIN Semiconductor Corporation, Microchip Technology Incorporated, Lattice Semiconductor Corporation, Efinix Inc. and Achronix Semiconductor Corporation. Xilinx dominates the global FPGA market and offers devices across all major FPGA categories. Intel focuses on FPGAs for data centers and networks.

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