Market Insights - Global Analog IC Market

Market Overview

An analog circuit perform single processing on time varying signals with a range of levels in either voltage, charge or current. Analog ICs take any inputs and produce outputs of any level. For instance, audio amplifier is an analog IC, wherein it takes analog input and produces an analog output, i.e. it takes sound and produces louder sound. Analog ICs are different from discrete analog circuits in that it is fully integrated onto a single monolithic piece of silicon, where selecting individual element is impossible. The analog IC designers work within the constraints of circuit elements, their range of values and their tolerances that the process technology allows. Although most of the modern devices are digital, they operate with constantly varying analog inputs such as heat, light, and sound, which needs  to be in digital signals and zeros of processing.

The global analog IC market is estimated to account for US$ 57,482.0 Mn in terms of value by the end of 2019.

Market Dynamics- Drivers

  1. Growing demand for advanced consumer electronics products is expected to drive growth of the global analog IC market during the forecast period

Consumer electronics such as Blu-ray players, tablets, smartphones, LCD TVs have witnessed significant demand in the recent past. These products also include ultra 4K HD TVs, wearable fitness trackers and smart watches, smart smoke and CO2 detectors, thermostats, IP/Wi-Fi cameras, smart switches, smart locks, dimmers, and more are expected to witness lucrative growth during the forecast period. Moreover, many of aforementioned devices have sensors and these sensors interface to the real world and thus, analog processing is required for analog to digital conversion. These functions are combined with digital for a solution, which is cost-effective, consumes less power, and is more reliable. Hence, these factors are expected to boost the global analog IC market growth over the forecast period.

  1. Increasing use of safety systems in the automobile industry is expected to propel the global analog IC market growth over the forecast period

Penetration of semiconductor devices in automotive systems, owing to increased use of electronics in fuel efficiency, safety, emission reduction, navigation, and entertainment systems is boosting the demand for analog ICs. Furthermore, systems offering partial or complete automation, leading fully autonomous vehicles are enhancing total IC content per automobile. The computational load of next-generation advanced driver assistance systems (ADAS) increases rapidly during the process of widening the sensing range, enhancing detection precision, and implementing accurate algorithms for prompt and effective responses to different driving conditions. Hence, increasing demand for driverless and smart cars is expected to boost the demand for advanced sensors in the near future. This, in turn, is expected to support the global analog IC market in the near future.

Asia Pacific region dominated the global analog IC market in 2018, accounting for 45.9% share in terms of volume, followed by North America, Europe, Latin America, and Middle East & Africa, respectively.

Analog IC  | Coherent Market Insights

Source: Coherent Market Insights

Market Dynamics- Restraints

  1. Presence of counterfeit semiconductor components in the market is expected to restrain growth of the global analog IC market over the forecast period

Presence of bogus semiconductor is creating major risks to global semiconductor suppliers, public health and safety, civilian, and military infrastructure. This is a prevalent problem around the world, despite having stringent laws regarding intellectual property rights. These counterfeit semiconductors are of low quality hence they prematurely fail or do not function as expected. These semiconductors, if assembled into navigational, detection, testing or monitoring electronics, and similar products, can lead to catastrophic failures in applications. According to the Semiconductor Industry Association (SIA), counterfeit semiconductor components cost the U.S. semiconductor industry an estimated US$ 7.5 billion in losses each year.

  1. Complex designing of analog integrated circuits is expected to hinder the global analog IC market growth during the forecast period

Designing the analog IC is a major challenge for key manufacturers demand for various types of analog ICs is unpredictable due to advent of various technological advancements and innovations in devices. Thus, key players are continuously innovating novel products, in order to sustain in the highly competitive market. Moreover, managing the quality of the product while upgrading analog ICs in a cost-effective way is another challenge for market players. Offering feature-rich devices that incorporate analog ICs involves high hidden costs, which need to be borne by manufacturers. Hence, these factors are expected to hamper the market growth in the near future.

Market Opportunity

  1. Offering cost-effective semiconductors with advanced features is expected to pose lucrative growth opportunity

Key players can expand their revenue generation and market presence by offering semiconductors at economical price. Generally, counterfeit semiconductors are available at low prices though they often do not perform or prematurely fail. Major manufacturers can offer high-quality products at economical price as it can eliminate if not minimize threat of bogus semiconductors and help them enhance their market presence.

  1. Mergers and acquisitions among key players can offer lucrative growth opportunity in the near future

Various manufacturers in the market are focused on mergers and acquisitions strategies, in order to leverage business opportunities. For instance, in December 2016, Analog Devices, Inc. announced plans to fully acquire Linear Technology Corporation by the end of the second fiscal quarter of 2017. The company has completed all necessary long-term debt financing arrangements for the acquisition of Linear Technology Corporation. Furthermore, in December 2015, NXP Semiconductors N.V. merged with Freescale Semiconductor, Ltd., in order leverage emerging opportunities in the field of connectivity, processing, and security. This merger would strengthen NXP’s market position globally, listing it among the top automotive electronics maker in the world.

Analog IC  | Coherent Market Insights

Global application specific IC market was valued at US$ 16,250.0 Mn market in 2018 and is forecasted to reach a value of US$ 61,348.0 Mn by 2027 at a CAGR of 7.4% between 2017 and 2027.

Market Trends

  1. Slow global economic growth has hindered growth of semiconductor industry

Growth of the global semiconductor market is closely related to global economic circumstances. Hence, there cannot be strong semiconductor market growth without robust economic growth around the world. In the recent past, local economies have slowed down in many areas of the world significantly. According to Coherent Market Insight’s analysis, China, a leader in consumer electronics such as personal computers, smartphones, digital TVs and aircrafts and automobiles lost its economic momentum in 2016. Moreover, worldwide economy is expected to witness a negative impact due to Brexit vote in the near future. However, presently, since the U.K. is unlikely to officially be able to leave the European Union (EU) for a few more years, the major negative effect on economic growth is the uncertainty of the entire situation.

  1. Advancements in technology to develop novel products is expected to boost the demand for analog IC in the near future

Key companies in the market are focused on research and development activities, in order to innovate novel products and cater to growing demand. For instance, in September 2016, Texas Instruments Inc. launched ultra-low-power dual-band wireless microcontroller, which supports Sub-1 GHz and Bluetooth low energy connectivity on a single chip. The microcontroller helps developers to change from a three-chip solution to a tiny single chip, while reducing design complexity, saving power, cost, and board space. Furthermore, in April 2016, Technologies A.G.’s chips – OPTIGA TPM was selected to be deployed in Lenovo’s ThinkPad notebooks, in response to the security risks associated with connectivity and networking and to enable better protection against hacker attacks.

Segment information:

In Global analog IC market, by application segment, the consumer electronics sub-segment dominated the global market in 2018, accounting for 35.4% share in terms of value, followed by communication, automotive, industrial, medical & healthcare, and others, respectively.

Analog IC  | Coherent Market Insights

Source: Coherent Market Insights

Value Chain Analysis

Analog IC  | Coherent Market Insights

Competitive Section

Key players operating in the global analog IC market are Texas Instruments Incorporated, Renesas Corporation, Infineon Technologies AG, Qualcomm Technologies, Inc., NXP Semiconductors, ON Semiconductor, STMicroelectronics, Skyworks Solutions, Inc., Analog Devices, Inc., and Maxim Integrated Products Inc.

Key Developments

  1. Key players in the market are focused on product launch, in order to expand their product portfolio. For instance, in January 2017, Texas Instruments Inc. introduced two devices CC2640 Launchpad and CC2640R2F wireless microcontrollers, which are under its SimpleLink Bluetooth low energy wireless microcontroller portfolio.
  2. Major market players are involved in partnerships and collaborations, in order to enhance their market presence. For instance, in January 2017, ON Semiconductor Corporation collaborated with Hexius Semiconductor, a U.S.-based mixed-signal IC designing company, in order to enhance its analog functionality for next generation mixed signal ASICs. This would enable the company to reduce design cycle and time-to-market.

Analog electronic circuit includes an analog signal with constantly changing signal, which contradicting to digital electronics where signals usually signals take only two levels. Most of the fundamental electronic components such as inductors, resistors, capacitors, diodes, transistors, and operational amplifiers are characteristically analog. Analog ICs are increasingly used in various applications due to smaller size, higher speeds, and lower power consumption. Penetration of semiconductor devices in automotive systems, owing to increased use of electronics in fuel efficiency, safety, emission reduction, navigation, and entertainment systems is boosting the demand for analog ICs.

Market Dynamics

Increasing demand for advanced medical equipment in the healthcare industry has accelerated the demand for analog IC significantly. Medical equipment, especially implantable medical devices, are designed to offer therapy for pain management and psychological disorders have pre-installed analog ICs. Moreover, growing urbanization, global population, and technological advancements analog ICs are enhancing functionality of these healthcare equipment. Hence, these factors are expected to drive the global analog IC market growth over the forecast period.

However, increasing political interference, resulting in lack of investment which is expected to hamper the growth of the global analog IC market.

Market Taxonomy

This report segments the global analog IC market on the basis of product type and application. On the basis of product type, the global analog IC market is segmented into application specific IC and general purpose IC. On the basis of application, the market is segmented into communication, consumer electronics, automotive, industrial, medical & healthcare, and others.

Key features of the study:

  • This report provides an in-depth analysis of the global analog IC market and provides market size (US$ Million) and Compound Annual Growth Rate (CAGR %) for the forecast period (2019 – 2027), considering 2018 as the base year
  • It elucidates potential revenue opportunities across different segments and explains attractive investment proposition matrix for this market
  • This study also provides key insights about market drivers, restraints, opportunities, new product launches or approval, regional outlook, and competitive strategy adopted by leading players
  • It profiles leading players in the global analog IC market based on the following parameters – regulatory landscape, company overview, financial performance, product portfolio, geographical presence, distribution strategies, key developments and strategies, and future plans
  • Key companies covered as a part of this study include Texas Instruments Incorporated, Renesas Corporation, Infineon Technologies AG, Qualcomm Technologies, Inc., NXP Semiconductors, ON Semiconductor, STMicroelectronics, Skyworks Solutions, Inc., Analog Devices, Inc., and Maxim Integrated Products Inc.
  • Insights from this report would allow marketers and management authorities of companies to make informed decision regarding future product launches, technology up-gradation, market expansion, and marketing tactics
  • The global analog IC market report caters to various stakeholders in this industry including investors, suppliers, distributors, new entrants, and financial analysts
  • Stakeholders would have ease in decision-making through the various strategy matrices used in analyzing the global analog IC market

Detailed Segmentation:

  • Global Analog IC Market, By Product Type:
    • Application Specific IC
    • General Purpose IC
  •  Global Analog IC Market, By Application:
    • Communication
    • Consumer Electronics
    • Automotive
    • Industrial
    • Medical & Healthcare
    • Others
  •  Company Profiles
    • Texas Instruments Incorporated*
      • Company Overview
      • Product Portfolio
      • Financial Performance
      • Key Strategies
      • Recent Developments
      • Future Plans
    • Renesas Corporation
    • Infineon Technologies AG
    • Qualcomm Technologies, Inc.
    • NXP Semiconductors
    • ON Semiconductor
    • STMicroelectronics
    • Skyworks Solutions, Inc.
    • Analog Devices, Inc.
    • Maxim Integrated Products Inc.

*Browse all the market data tables and figures on "Global Analog IC Market - Forecast to 2027”

Table of Contents

  1. Research Objective and Assumption
    • Research Objectives
    • Assumptions
    • Abbreviations
  2. Market Purview
    • Report Description
      • Market Definition and Scope
    • Executive Summary
      • Market Snippet, By Product Type
      • Market Snippet, By Application
      • Market Snippet, By Region
    • Coherent Opportunity Map (COM)
  3. Market Dynamics, Regulations, and Trends Analysis
    • Market Dynamics
      • Drivers
      • Restraints
      • Market Opportunities
      • Regulatory Scenario
      • Industry Trend
      • Merger and Acquisitions
      • New Product Launch/Approvals
      • Value Chain Analysis
      • Porter’s Analysis
      • PEST Analysis
  4. Global Analog IC Market, By Product Type, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Application Specific IC
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • General Purpose IC
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  5. Global Analog IC Market, By Application, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, 2017 and 2027 (%)
      • Segment Trends
    • Communication
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Consumer Electronics
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Automotive
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Industrial
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Medical & Healthcare
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
    • Others
      • Introduction
      • Market Size and Forecast, 2019–2027, (US$ Million)
  6. Global Analog IC Market, By Region, 2017-2027  (US$ Million)
    • Introduction
      • Market Share Analysis, By Region, 2017 and 2027 (%)
    • North America
      • Regional Trends
      • Market Size and Forecast, By Product Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.S.
        • Canada
    • Europe
      • Regional Trends
      • Market Size and Forecast, By Product Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • U.K.
        • Germany
        • Italy
        • France
        • Russia
        • Rest of Europe
    • Asia Pacific
      • Regional Trends
      • Market Size and Forecast, By Product Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • China
        • India
        • Japan
        • ASEAN
        • Australia
        • South Korea
        • Rest of Asia Pacific
    • Latin America
      • Regional Trends
      • Market Size and Forecast, By Product Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Brazil
        • Argentina
        • Mexico
        • Rest of Latin America
    • Middle East and Africa
      • Regional Trends
      • Market Size and Forecast, By Product Type, 2019–2027 (US$ Million)
      • Market Size and Forecast, By Application, 2019–2027 (US$ Million)
      • Market Share Analysis, By Country, 2019 and 2027 (%)
        • Israel
        • GCC Countries
        • South Africa
        • Rest of the Middle East and Africa
  7. Competitive Landscape
    • Company Profiles
      • Texas Instruments Incorporated
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Renesas Corporation
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Infineon Technologies AG
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Qualcomm Technologies, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • NXP Semiconductors
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • ON Semiconductor
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • STMicroelectronics
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Skyworks Solutions, Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Analog Devices, Inc.,
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
      • Maxim Integrated Products Inc.
        • Company Overview
        • Product Portfolio
        • Financial Performance
        • Key Strategies
        • Recent Developments/Updates
    • Analyst Views
  8. Section
    • References
    • Research Methodology
    • About us and Sales Contact

*Browse 60 market data tables and 40 figures on "Analog IC Market - Global forecast to 2027”.

Research Methodology

Coherent Market Insights followsa comprehensive research methodology focused on providing the most precise market analysis. The company leverages a data triangulation model which helps company to gauge the market dynamics and provide accurate estimates. Key components of the research methodologies followed for all our market reports include:

  • Primary Research (Trade Surveys and Experts Interviews)
  • Desk Research
  • Proprietor Data Analytics Model

In addition to this, Coherent Market Insights has access to a wide range of the regional and global reputed paid data bases, which helps the company to figure out the regional and global market trends and dynamics. The company analyses the industry from the 360 Degree Perspective i.e. from the Supply Side and Demand Side which enables us to provide granular details of the entire ecosystem for each study. Finally, a Top-Down approach and Bottom-Up approach is followed to arrive at ultimate research findings.


Data Triangulation Methodology | Coherent Market Insights

Coherent Market Insights desk research is based on a principle set of research techniques:

  • National level desk research: It Includes research analysis of regional players, regional regulatory bodies, regional trade associations, and regional organization.
  • Multinational level desk research: The research team keeps a track of multinational players, global regulatory bodies, global trade associations, and global organization.

Coherent Market Insights has a large amount of in-house repository of industry database. This is leveraged as a burner for initiating a new research study. Key secondary sources include:

  • Governmental bodies, National and international social welfare institutions, and organizations creating economic policies among others.
  • Trade association, National and international media and trade press.
  • Company Annual reports, SEC filings, Corporate Presentations, press release, news, and specification sheet of manufacturers, system integrators, brick and mortar - distributors and retailers, and third party online commerce players.
  • Scientific journals, and other technical magazines and whitepapers.

Market Analysis | Coherent Market Insights

Preliminary Data Mining

The raw data is obtained through the secondary findings, in house repositories, and trade surveys. It is then filtered to ensure that the relevant information including industry dynamics, trends, and outlook is retained for further research process.

Data Standardization

Holistic approach is used to ensure that the granular and uncommon parameters are taken into consideration to ensure accurate results. The information from the paid databases are further combined to the raw data in order to standardize it.

Coherent Statistical model

We arrive at our final research findings through simulation models. Coherent Data Analytics Model is a statistical tool that helps company to forecast market estimates. Few of the parameters considered as a part of the statistical model include:

  • Micro-economic indicators
  • Macro-economic indicators
  • Environmental indicators
  • Socio-political indicators
  • Technology indicators

Data Processing

Once the findings are derived from the statistical model, large volume of data is process to confirm accurate research results. Data analytics and processing tools are adopted to process large chunk of collected informative data. In case, a client customizes the study during the process, the research finding till then are benchmarked, and the process for new research requirement is initiated again.

Data Validation

This is the most crucial stage of the research process. Primary Interviews are conducted to validate the data and analysis. This helps in achieving the following purposes:

  • It provides first-hand information on the market dynamics, outlook, and growth parameters.
  • Industry experts validates the estimates which helps the company to cement the on-going research study.
  • Primary research includes online surveys, face-to face interviews, and telephonic interviews.

The primary research is conducted with the ecosystem players including, but not limited to:

  • Raw Material Suppliers
  • Manufacturers
  • System Integrators
  • Distributors
  • End-users