The market for advanced semiconductor packaging reached $32 billion in 2020 and is expected to grow at a CAGR of 8.2% during the forecast period of 2023 to 2045. By the year 2025, the revenue generated by advanced packaging will be about equivalent to that generated by traditional packaging. The percentage of the market that advanced packaging (AP) had in 2020 was about 43%. As a result of the robust momentum in the AP industry, which is being driven by major trends, the share of AP in the overall semiconductor market is steadily growing and is projected to reach nearly half of the market by the year 2025. The market for advanced packaging is rapidly gaining pace due to the rise in demand for upgraded technologies across numerous industrial verticals. These include the integration of IoT and AI, as well as the surge in demand for smart consumer electronics. The expansion of the advanced packaging industry is fuelled by the technological advancements made by the developing economies in the Asia-Pacific region.
Increased Applications across Increasing Verticals Remain as the Largest Market Drivers
Data is currently experiencing a meteoric rise across the board and in practically every sector. Learning through machine and artificial intelligence is an important data enabler in a wide variety of applications, such as data centers, 5G, and autonomous vehicles. In order to run these programs, a strong processor is required, and the foundation for this processor should be an integrated circuit (IC) manufactured out of Si. Since the invention of integrated circuits (ICs), chip design firms have been building chips with all of their functionalities integrated into a single die. However, as Moore's law comes to a halt (meaning that chip densities are no longer doubling every two years), scaling monolithic IC is becoming increasingly difficult and expensive. IC makers are therefore compelled to work on developing "advanced semiconductor packaging technologies." Advanced semiconductor packaging technologies, such as 2.5DIC and 3DIC, as compared to standard packaging technologies, promise higher chip connectivity and reduced power consumption. This enables the IC vendor to continue supplying high-performance chips at a reasonable price.
Asia to Remain as the Market Leader with China and India Registering Significant Growth During Forecast Period
The semiconductor advanced packaging market in the United States reached $3 billion dollars in the year 2020. At the moment, the nation holds a share of the world market which is approximately 10.5%. The market size in China, which has the second largest economy in the world, is expected to grow at the fastest pace thereby registering an expected CAGR of 9.5% during the forecast period. Japan and Canada are two other important geographic markets that are expected to register a CAGR of 5.2% and 6.5% during the forecast period. Germany is expected to expand at a CAGR f 5.5% and is expected to retain its position as the largest market within Europe during the forecast period.
High Intensity of Competitive Rivalry, Innovation to Offer Competitive Advantage
Manufacturers are placing increased emphasis on the provision of compact electronic devices across a variety of industry verticals, including consumer electronics, healthcare, automotive, and the manufacturing of semiconductor ICs. This trend is attributable to the acceleration of technological advancement. These companies are working to improve the quality of the patterning on their wafers and chips by decreasing the size of the integrated circuits they produce. In addition to this, the industry that manufactures medical devices is seeing a rise in demand for nano-sized robotic surgery equipment, which has become increasingly sophisticated alongside improvements in wearable and individualized medical technology. As a consequence of this, the tendencies toward tiny electronic gadgets have produced the necessity for designers to outgrow the standard packaging options and use advanced packaging instead. Because of the robust presence of several existing vendors, the global market for advanced packaging is characterized by a high degree of competition. It is projected that advanced packaging suppliers who have access to an extensive amount of technological and financial resources will gain a competitive advantage over their competitors, as they will be in a position to meet the requirements of the global market. It is anticipated that the level of competition in this market would get significantly more intense as a result of an increase in the number of technological developments, product extensions, and varied strategies taken by the leading suppliers. The key companies dominating the market in the advanced semiconductor packaging market include TSMC, Samsung Electronics, ASE, SPIL, Intel, Chip Bond, and others.
The report includes an in-depth analysis of the most recent advancements in advanced semiconductor packaging technology, key technical and marketing trends, an analysis of the entire value chain, a detailed study of competitive trends and analysis, and a granular level forecast. Key highlights of the report include the following:
