Global Application Specific Industrial Analog IC Market Size

Application Specific Industrial Analog IC Market Analysis

The global application-specific industrial analog IC market is expected to register a CAGR of 5.6% during the forecast period (2022-2027). Factors such as rising Factory Automation, Miniaturization of semiconductors, and Advancements in the Internet of Things and Artificial Intelligence are driving the growth of the studied market.

• Penetration of semiconductor devices in industrial systems, owing to the increased popularity of smart factory initiatives, is boosting the demand for application-specific industrial analog ICs.
• For instance, According to Cisco, by 2022, machine-to-machine (M2M) connections that support IoT applications are likely to account for more than half of the world's 28.5 billion connected devices. The increase is attributed to manufacturers worldwide understanding the capabilities and advantages of next-generation robotics and automation technologies to facilitate upgradation in manufacturing in terms of productivity, quality, safety, and cost metrics.
• On the flip side, the COVID-19 pandemic disrupted the supply chain activities of the semiconductor and IC industry. The scarcity of raw materials used in manufacturing, and fluctuating prices of raw materials that cause the production cost of the final product to inflate and go beyond budget, labor shortages, shipping challenges, etc., contributed to the slow down of the market development.
• Several countries are taking stringent measures to recover from the disastrous impact of the pandemic. For instance, the president of the United States signed an executive order on Feb 24, 2021, authorizing a long-term supply chain review of six sectors of the economy and a short-term review of semiconductors and the materials needed to make them. This is because the pandemic disrupted the demand patterns significantly, and the way companies responded to this demand shock or failed to anticipate it led to a problem. The Federal Government has also developed a program, 'CHIPS for America,' promoting domestic manufacturing. The U.S. government is now coming up with incentives to bring back U.S. manufacturing of semiconductors, which is called 'reshoring.'
• Further, in 2021, South Korea announced ambitious plans to spend almost USD 450 billion over the next decade to establish the world's largest chipmaking base, joining China and the United States in a worldwide contest to control critical technology. Such investments and initiatives are expected to boost the growth of the studied market.