Market Trends of Communication Standard Logic IC Industry
This section covers the major market trends shaping the Communication Standard Logic IC Market according to our research experts:
Automotive Industry to Drive the Market Growth
- Because of rising consumer awareness about environmental pollution and rising oil prices, the demand for electric vehicles is expanding globally, which is driving the market for communication logic IC to rise. The potential of vehicle-to-vehicle (V2V) communication to wirelessly transmit information on the speed and position of nearby cars holds enormous promise for reducing traffic congestion, avoiding crashes, and improving the environment.
- Increased sales of vehicles as a result of increased connectivity options in vehicles are positively impacting the industry's growth. Furthermore, the market is expected to develop in the forecast period due to the rapid growth of the automotive sector.
- Germany produces a major portion of the world's premium cars, accounting for over 70% of all premium vehicles sold worldwide. According to the Federal Statistical Office, Germany's automotive microelectronics sector is predicted to grow at a rate of 5.9% each year, making it the industry's strongest country. The addition of advanced features and utilities to such vehicles boosts the market's demand.
- The need for ICs in automotive is growing as a result of new government laws aimed at improving driver safety and security. Because of the existence of large players offering innovative solutions, North America held a dominating market for automotive ICs in 2016.
- Furthermore, the market for automotive ICs in North America has grown due to the widespread adoption of modern vehicles and a surge in public demand for safety and security in vehicles. Due to increased sales of modern vehicles, passenger cars have a larger penetration in this region, which is likely to boost market growth even further.
Understand The Key Trends Shaping This Market
Download Sample
Asia pacific is Anticipated to be the Fastest Growing Region
- Asia-Pacific is the fastest-growing region in terms of demand, consumer base, and economy of the region. Many growing economies in the Asia-Pacific area have lower ownership rates for consumer electronics, automobiles, etc. The region is also witnessing rapidly growing industries such as automobiles, electronics, semiconductors, smartphones, and others. The region also has major countries with massive military budgets, driving the demand for electronics and IC products. These combined factors make Asia-Pacific one of the fastest-growing geography for the market.
- According to the GSMA's Mobile Economy Report 2021, nearly 200 million new mobile subscribers will be added by 2025, bringing the total number of subscribers to 1.8 billion (62% of the region's population). Moreover, South Asia will account for a large portion of the expansion, with India accounting for more than half of the new users by 2025.
- 5G networks, cloud services, edge computing, AI, big data, and the Internet of Things will all be critical in driving the market in a post-pandemic digital economy. By the end of 2025, Asia Pacific will have 429 million 5G connections and 3.3 billion total IoT connections, according to the GSMA.
- The region has a strong infrastructure for automobile manufacturing and a huge market for consumption. Asia-Pacific is the home of major automobile manufacturers such as Honda, Hyundai, Toyota, TATA, etc. The region is also a huge market for the automobile industry, with consumers of all classes.
- According to the 2022 data by OICA, in 2021, China produced approximately 21.4 million passenger cars, while Japan and India produced approx. 6.6 and 3.6 million cars. While China has partnerships and collaborations with global automobile manufacturers, making it the biggest auto producer in the region, ahead of South Korea, Japan, and India, these countries enjoy a strong domestic automotive sector. With the rise of the auto industry in the region, the demand for the studied market will also grow.
Get Analysis on Important Geographic Markets
Download Sample
