Market Trends of IC Socket Industry
This section covers the major market trends shaping the IC Socket Market according to our research experts:
Consumer Electronics Segment is Expected to Have Significant Growth
- Consumer electronics lead the market on account of the massive sales of laptops, smartphones, PCs, tablets, and other consumer electronic devices that incorporate integrated circuits. These electronic appliances are manufactured with some simple or complex circuits. Electronic components in these circuits are connected by wires or conducting wires for the flow of electric current through the circuit's multiple components, such as resistors, capacitors, inductors, diodes, and transistors. Due to the increasing sales of consumer electronics, IC sockets are expected to witness a greater adoption in these devices.
- Sales growth in both smartphones and personal computing systems is being bolstered by increasing memory prices. However, the ongoing decline in shipments of standard personal computers, along with the slow growth of tablets, is aiding the mobile IC sales to override total personal computing sales over the forecast period.
- In the consumer electronics industry, the demand for more precise results, along with smaller chips, is rapidly increasing due to ascending profit margins and reduced transportation costs.
- With the miniaturization and fabrication of multiple technologies onto a single disk in consumer devices, like smartphones, tablets, wearable's, smart TVs, and gaming consoles, the need for IC's is expected to grow to evaluate the inputs into an actionable function, which can be then followed by the device. The rise in IoT also resulted in increased usage of chips for consumer electronic devices.
Understand The Key Trends Shaping This Market
Download Sample
Asia-Pacific Expected to Have Significant Growth
- Asia-Pacific is expected to have significant growth in this market. Various companies have almost reduced the product development period by half, owing to the changing consumer demands. This trend requires companies to continuously design and test products, driving the adoption of IC sockets.
- Countries in the region, including China, have the most significant markets for the ICs and IC test sockets, owing to its dominance in the manufacturing of the global semiconductor industry, consumer electronic industry, and communication equipment, among others. The country is also one of the major investors in the global automotive manufacturing industry. Along with these, favorable government policies and initiatives and motivating many domestic players to increase their investment in the region.
- Further, the IC manufacturing business in China set to grow driven by a strong global IC market and increased market share. Growing government initiatives are also fuelling the domestic IC market. For instance, the Chinese government raised around USD 23 to 30 billion to pay for the second phase of its National IC Investment Fund. The National IC Investment Fund, or Big Fund, was introduced in 2014 to support the semiconductor sector, and since 2015 China's semiconductor industry has been thriving.
- Made in China 2025 policies clearly outline that the nation is aiming to raise its self-sufficiency rate for ICs to 40% in 2020 and 70% in 2025. Therefore, domestic China-sourced ICs will grow significantly over the next five years, especially for memory chips. More and more decisions made in China will be from local chip designers, which is beneficial for local vendors in the studied market. Such initiatives are expected to promote the demand for tests and burn ICs.
- Although, presently, the IC test sockets consumed in China are mostly supplied by foreign vendors. However, local suppliers will have more opportunities for sales of higher-margin products in the future. However, the pandemic COVID-19 led by disruptions in supply chain and manufacturing operation is expected to hinder the market growth temporally.
Get Analysis on Important Geographic Markets
Download Sample
