Logic IC Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Type (TTL (Transistor Transistor Logic), CMOS (Complementary Metal Oxide Semiconductor), Mixed Signal), By Product Type (ASSP (Application Specific Standard Product), ASIC (Application Specific Integrated Circuit), PLD (Programmable Logic Device)), By Application (Automotive, Consumer Electronics, Manufacturing, Others), And By Geography - Forecasts From 2023 To 2028

Logic IC Market is projected to grow at a CAGR of 2.43% to reach US$160.762 billion in 2028 from US$135.916 billion in 2021.

Market Overview:

A logic integrated circuit (IC) is a semiconductor device that performs a basic logical operation on one or more digital input signals to produce a digital output signal. Logic ICs are also categorized as analog switches that connect or disconnect an analogue signal's conducting path. Every digital product, including arithmetic logic units (ALUs) and phones, now includes logic integrated circuits (ICs) as a key component. Based on application the logic IC market is segmented into automotive, consumer electronics, manufacturing, and other industries. The automotive sector is set to experience growth over the forecasted period due to an increase in sales of electric vehicles which incorporate these types of semiconductors. In addition, the consumer electronics sector is leveraging logic ICs to produce slimmer and more display-driven devices, as well as enhanced haptics to provide users with a richer, more tactile experience.

Digitalization in services over the world will drive the growth of the Logic IC market.

The expansion of the industry has benefited from technological developments in the purchase of electronic equipment as well as the rising trend for computerization and digitalization. While the COVID-19 pandemic severely disrupted trade in other services such as transportation and travel, digitally deliverable services such as telecommunication services, information and technology services, insurance, and various business services such as professional and management consulting remained resilient, increasing as a share of total services exports. According to the United Nations Conference on Trade and Development (UNCTAD), the digital services proportion of the global market increased from 52% in 2019 to 64% in 2020, accelerating the previous increasing trend. Furthermore, the implementation of next-generation telecommunication networks, such as 5G cellular services, necessitates a comprehensive change in infrastructure configuration which will boost the growth of the logic IC market.

Logic IC application in the consumer electronics segment is creating a better user experience. 

Consumer electronics have become thinner and more display-driven, and improved haptics is evolving to provide a richer, more tactile experience to users. During the forecast period, this market is expected to grow due to the widespread use of integrated circuits in goods like smartphones, computers, computerized cameras, medical equipment, automobiles, and many other things. For instance, Cirrus Logic leveraged its low-power, low-latency mixed-signal processing technology in May 2020 to develop an advanced product portfolio of haptic and sensing integrated circuits (ICs) that enable increased functionality and sleek buttonless designs for smartphones, PCs, wearables, gaming, virtual reality, and automotive applications, to elevate the user experience for a wide range of consumer devices.

The rising use of CMOS technology in the automotive sector is driving the growth of the logic IC market

Based on type, logic ICs are segmented into TTL (Transistor Transistor Logic), CMOS (Complementary Metal Oxide Semiconductor), and mixed-signal. Among these CMOS is expected to grow over the forecasted period because of its radar application in the automotive industry. A high-performance and dependable radar module are essential for future automated driver assistance systems and autonomous driving. New features, such as advanced emergency braking systems (AEBs) that react to crossing motorcycles, will necessitate increased performance and module count per vehicle. For instance, In November 2022, Infineon introduced the RASIC CTRX8181 transceiver, its next innovative radar and the first product in a line of new 76 to 81 GHz radar MMICs based on 28-nm CMOS technology. The transceiver's increased signal-to-noise ratio and linearity enable exceptional system-level performance and resilience. Furthermore, the simple-to-use radar transceiver provides a scalable platform solution for various sensors such as a corner, front, and short range, as well as flexibility for new software-defined vehicle architectures. This allows for the development of 77 GHz automobile radar applications at a lower cost.

The Asia Pacific is expected to hold a significant market share in the global market.

Asia-Pacific (APAC) is expected to grow significantly during the forecast period due to an increase in consumer electronics demand as well as the modernization of telecommunications and broadband infrastructure in emerging countries such as India. The Electronics System Design and Manufacturing (ESDM) industry is one of the country's fastest-growing sectors, with a global reputation for its consumption potential. According to the National Electronics Policy 2019, the Indian Electronic Manufacturing Services (EMS) sector is predicted to reach USD 400 billion by 2025, with a compound annual growth rate (CAGR) of 17.5% over the previous five years. This massive increase in demand bodes well for the logic IC business. Japan is also attempting to catch up to the US and Taiwan in terms of logic IC capability by fostering a local company to ringfence logic chip supplies. For instance, The Japanese public television broadcaster, NHK, revealed in November 2022 that a new semiconductor company will be jointly funded by eight Japanese conglomerates to produce cutting-edge logic chips. Rapidus is the name of the new company. Rapidus plans to mass-produce semiconductors starting at 2nm and below that will be used in autonomous driving, artificial intelligence (AI), and smart cities.

Key Developments

• April 2022: Intel has released information about its new Intel Blockscale ASIC. This application-specific integrated circuit (ASIC) will give users energy-efficient hashing for proof-of-work consensus networks, based on years of Intel R&D. Argo Blockchain, Block Inc., Hive Blockchain Technologies, and GRIID Infrastructure will be among the first to use the Intel Blockscale ASIC, which has a hash rate of up to 580 GH/s.
• July 2021: Shanghai Baosight Software Co Ltd debuted a huge programmable logic controller product created in-house in July 2021 in Shanghai. Industrial automation is an important aspect of the growth of the steel ecosystem. The introduction of the PLC product was a milestone in a market dominated by producers from the EU, the US, and Japan.

Logic IC Market Scope:

Segmentation:

• By type
  • TTL (Transistor Transistor Logic)
  • CMOS (Complementary Metal Oxide Semiconductor)
  • Mixed Signal
• By product type
  • ASSP (Application Specific Standard Product)
  • ASIC (Application Specific Integrated Circuit)
  • PLD (Programmable Logic Device)
• By application
  • Automotive
  • Consumer electronics
  • Manufacturing
  • Others
• By geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Italy
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • China
    • Japan
    • India
    • South Korea
    • Australia
    • Others