Market Trends of Application Specific Analog IC Industry
This section covers the major market trends shaping the Application Specific Analog IC Market according to our research experts:
Increased Consumer Electronics Penetration to Drive the Market Growth
- The increasing usage of analog ICs in consumer electronic devices fuels the demand. The growing penetration of smartphones and smart devices is augmenting the demand for analog integrated circuits. From smart speakers and wearables to voice-controlled TV remotes, consumers love using voice to interact with the always-on smart electronic products in their lives.
- Smartphones command a significant market share, and with the advent of 5G smartphones, the demand is expected to increase even further. Global companies, like Samsung, are increasingly investing in the semiconductor business to become prominent smartphone vendors in the 5G smartphone space.
- In January 2022, China's shipments of smartphones compatible with 5G networks increased by 63.5% to 266 million in 2021 as falling prices boosted demand, according to the report by the China Academy of Information and Communications (CAICT). The report also stated that 5G smartphone shipments accounted for 75.9% of Chinese shipments, higher than a global average of 40.7%.
- The increasing adoption of smart wearables, like smartwatches and fitness bands, and their increasing functionality are also expanding the growth of the consumer electronics segment. For instance, in April 2021, Fitbit announced its new Luxe fitness tracker, a buttonless tracker. It is supported for Android and iOS devices. It also supports Google Fast Pair for pairing more quickly to Android devices and supports connected GPS while paired to the phone.
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Asia-Pacific is Expected to Witness Significant Growth
- The increased adoptions of smartphones, wearables, and vehicle automation are the prime factors driving the growth of the Asia-Pacific segment. Rising smartphone adoption rates have made Asia-Pacific one of the largest mobile markets in the world. This is due to the increasing population growth and urbanization.
- As per the GSM Association, more than 4 out of 5 connections will be smartphones by 2025. This trend is expected to increase the analog integrated circuit (Analog IC) usage for smartphones in this region.
- The increasing focus on IoT platforms is boosting this region's growth prospects for analog ICs. With countries such as China, India, and South Korea, actively trying to strengthen the IoT platforms, governments of these developing countries are focusing on entering various public and private collaborations on leveraging IoT advancements for smart cities, automation, and other industrial applications, thus reinforcing the development of the Asia-Pacific segment.
- Also, China is targeting sales of 7 million EVs by 2022 to battle air pollution and dependence on foreign oil. The Chinese government has been formulating technology standards and industry guidelines for autonomous vehicles. Beijing became the country's first city to allow open road tests for autonomous cars.
- Due to the global semiconductor chip shortage, various countries are taking initiatives to boost semiconductor production. For instance, in December 2021, India announced the Semicon India Program intending to make India a global leader in semiconductor manufacturing, design, and innovation. The program will provide incentive support to companies engaged in silicon semiconductor fabs, display fabs, and semiconductor design.
- With governmental support, the regional vendors have been increasing their production capacities, especially in countries including China, India, Japan, South Korea, and Taiwan, to meet the increasing global demand for Analog ICs.
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