Power Integrated Circuit Market Size

Power Integrated Circuit Market Analysis

The power integrated circuit market is expected to register a CAGR of 6.1% over the forecast period. Furthermore, the rise in technological advancement and demand for battery-operated devices are the significant drivers fueling the need for the market in the forecast period. According to IDC, India's overall PC market was expected to increase to over 15 million units by 2022, up from 10 million units in the previous year.

• Increased usage of next-generation mobile networks, such as 4G and 5G, is expected to evolve into an essential driving factor for market growth. Also, with the rollout of the 5G market, new devices need to be installed, which is expected to expand the market's scope further. According to Ericsson, 5G connections are anticipated to reach 4.4 billion by 2027.
• Furthermore, the appearance of 5G technology has significantly improved investment in telecom base stations, driving demand for power management integrated circuits. Countries across the world are making significant efforts to upgrade their telecommunications infrastructure. For instance, in July 2022, Nokia signed a five-year deal with Norwegian mobile operator Ice to upgrade and extend its 5G radio network infrastructure nationwide. About 3200 base stations were to be modernized as part of the agreement, and an additional 3900 unique base stations are expected to be deployed in the country.
• The advancement in the demand for communication devices, such as call-enabled tablets and portable navigational devices (PNDs), also scales the requirement for power management ICs. Consumer electronic products have also transformed substantially recently, with vendors introducing advanced electronic gadgets with smart features such as touchscreen displays, keypads, and in-built memory, which in turn has increased the need for power management ICs in the market.
• Power management significantly affects the device's efficiency, whether it is an ultra-low-power wireless sensor network or an automotive high-voltage power converter. With a rise in proper power management, companies manufacture customized power management integrated chips.
• However, the cyclical nature of the semiconductor industry and the reduced size of printed circuit boards are predicted to hinder market growth. For instance, the shift toward 300-mm wafers from 200-mm wafers and the introduction of 450-mm wafers are expected to increase the production of chips per wafer. This is likely to result in a low ASP for power management ICs, increasing their adoption across all application sectors.
• Since the outbreak of COVID-19, the integrated circuit manufacturing industry was severely hit with a significant influence on its supply chain and production facilities as production came to a standstill in China and Taiwan, especially during the initial phase, which influenced the production of various OEMs across the globe. However, a significant share of major vendors stocked up on electronics due to the Chinese New Year, which helped mitigate the risk.