Market Trends of Asia Pacific Logic IC Industry
IT & Telecommunications to Hold a Significant Market Share
- Over the years, the Asia Pacific region has transformed into a major IT & telecommunication industry market. A large population base is among the major factors behind the growth of these industries as they not only make a large consumer base but also help in the development of a skilled workforce for industries such as IT to thrive.
- In recent years, the Asia-Pacific region has also experienced rapid growth in digitalization, resulting in transformational market trends such as online learning and remote working. Additionally, enterprises are progressively adopting next-generation ICT solutions such as artificial intelligence, cloud technology, big data, and enterprise-grade networks to assist digital transformation. All this has been made possible due to the region's growth of IT & telecommunication infrastructure.
- Furthermore, the region has also been significantly adopting rich media content and digital services such as digital financial services, video streaming, conferencing, and eCommerce to meet consumers' evolving digital lifestyles, which is also positively influencing the growth of the IT & telecommunication sector in the region.
- With telecommunication technologies such as 5G taking over the world, the Asia Pacific region is just a little behind, with countries like China even outpacing developed countries such as the United States in terms of the deployment of 5G infrastructure. Over the coming years, the region will also witness rapid growth in the 5G subscriber base. For instance, according to Ericsson, the North East Asia region will dominate the 5G market owing to the highest growth in the number of subscribers. By 2028, the number of 5G subscribers in the region will increase to 1,710 million from 408 million in 2021. Hence, the confluence of such trends will positively impact the studied market's growth in the region.
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China to Hold a Significant Market Share
- China is expected to remain a lucrative market for the growth of the logic ICs market owing to the presence of a large consumer base for consumer electronic and computing products, wherein logic ICs are widely used. Additionally, a large industrial and manufacturing sector footprint, wherein advanced technologies such as automation and robotics are increasingly finding their place, also positively influences the demand for logic ICs.
- In recent years, China's IT and telecommunication industry has expanded significantly. The presence of a large telecom subscriber base has helped the telecom players grow significantly. For instance, according to the National Bureau of Statistics of China, in April 2023, the telecommunication industry in China generated a cumulative revenue of about CNY 144.88 billion (USD 20 billion), representing a year-on-year growth rate of approximately 7.3% that month.
- The arrival of 5G has also been positively influencing the growth of the IT & telecommunication industry in China, as it is driving investment in installing new equipment and base stations, driving the demand for logic ICs. According to MIIT, 5G base stations are expected to reach 2.31 million in 2022, from 0.15 million in 2019.
- Furthermore, China is also among the major markets for consumer electronic products owing to a higher penetration of consumer electronic gadgets such as smartphones, virtual reality, wearables, and drones. Additionally, the presence of an extensive electronics manufacturing ecosystem and supply chain also positively influences the studied market's growth.
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