Global Application Specific IC (ASIC) Market 2017-2021
About Application Specific IC
ASIC is a microchip, designed for a specific application or purpose. ASICs are manufactured with custom designs as per the device configuration or end-user specification. The different microprocessors and memory cores are being included in an ASIC, which enables the limited software programmability with the software algorithm performed on the device. An ASIC is found in all the electronic devices, and its uses can range from custom rendering of images to sound conversion. Digital circuits are a common form of ASIC.
Technavio’s analysts forecast the global application specific IC market to grow at a CAGR of 17.01% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global application specific IC market for 2017-2021. To calculate the market size, the report estimates include the sales of ASICs in several products, including augmented reality (AR) and VR, automobiles, laptops, PC monitors, smart bands, smartphones, smartwatches, tablets, and TVs.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Application Specific IC Market 2017-2021
Technavio recognizes the following companies as the key players in the global application specific IC market: Analog Devices, Infineon Technologies, STMicroelectronics, and Texas Instruments.
Other Prominent Vendors in the market are: Linear Technology, Maxim Integrated, NXP Semiconductors, ON Semiconductors, Renesas Electronics, and Skyworks Solutions.
Commenting on the report, an analyst from Technavio’s team said: “One trend in market is growth prospects in IoT and big data. IoT has garnered the need for interoperability among IoT devices, which has led to the origin of connected devices. Different vendors across the market have to work collectively in an open-source platform to set standards for all the things, to determine the interoperability among IoT devices.”
According to the report, one driver in market is declining ASPs of electronic devices. The portable electronic devices such as smartphones, wearable, tablets and laptops become obsolete after a short duration because of the introduction of new features and technologies. Due to this, the consumers are frequently upgrading their electronic devices, resulting in higher demand for these devices. This is driving the demand for ASICs supporting new features and technologies. For instance, the smartphone prices were nearly halved during 2012-2016, further adding to the growth of the market.
The smartphone prices had dropped from 2012 to 2016. For instance, in 2016, the price of Nexus 5X (16 GB) dropped from $469.64 to $322.87 to gain popularity and increase the sale in the market. In 2015, OnePlus 2 reduced its price from $337.55 to $308.20, to increase the market share.
Further, the report states that one challenges in market is requirement of high capital. The semiconductor market is booming with a rapid pace. The ASIC market constitutes around 3.4% of the total semiconductor market. The global ASIC market is capital intensive in nature. Rapid advances in the technology necessitate the vendors to use highly sophisticated equipment in the design and development of ASICs. Moreover, ASICs often need to be designed and developed with the needs of specific end-users, which require more investment in R&D and in manufacturing processes. In addition to all these factors, the increasing complexity of the ASICs itself is another factor contributing to the high cost of production. The need to overcome these issues is affecting the profitability of the vendors in the market.
Analog Devices, Infineon Technologies, STMicroelectronics, Texas Instruments, Linear Technology, Maxim Integrated, NXP Semiconductors, ON Semiconductors, Renesas Electronics, and Skyworks Solutions.
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