Analog IC Market is Estimated to Witness High Growth Owing to...

Analog IC Market is Estimated to Witness High Growth Owing to Opportunity of Rising Adoption of IoT Devices

Posted 2023-12-21 09:00:22

Analog IC refers to integrated circuits which represent and manipulate real world signals such as temperature, pressure, audio, and radio waves. Some key advantages of analog ICs include ability to operate in harsh environments, high accuracy and precision. They have applications in control systems, healthcare equipment, smart home appliances and consumer electronics. The growing adoption of IoT devices coupled with miniaturization of electronic components has augmented the demand for analog ICs vastly.

The global Analog IC Market is estimated to be valued at US$ 72.56 Bn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity
Rising Adoption of IoT Devices
The adoption of IoT devices has seen exponential growth over the past few years. It is estimated that there will be around 41.6 billion IoT connected devices globally by 2025. IoT devices require analog ICs for functions such as sensing temperature, pressure, motion etc. and communicating with other devices wirelessly. The proliferation of IoT across industries such as manufacturing, healthcare, automotive, consumer electronics etc. is expected to drive significant demand for analog ICs during the forecast period. This rising adoption of IoT devices presents a lucrative opportunity for analog IC market size players to tap into this fast growing market.

Porter's Analysis

Threat of new entrants: The Analog IC market has moderate threat of new entrants due to the presence of well-established market players and the requirement of high initial investments.

Bargaining power of buyers: The bargaining power of buyers is high in the Analog IC market as there are multiple suppliers for commonly required Analog ICs.

Bargaining power of suppliers: The bargaining power of suppliers is moderate due to the presence of many vendors for key components and the overall competitive nature of the market.

Threat of new substitutes: There is low threat of new substitutes in the Analog IC market as Analog ICs have highly specialized applications and no cost effective alternatives are available.

Competitive rivalry: The competitive rivalry in the Analog IC market is high due to presence of major players competing on basis of innovations, pricing and product quality.

SWOT Analysis

Strengths: Vast product portfolio, technological superiority, strong distribution network and brand recognition.

Weaknesses: High R&D costs, requirement of frequent modifications, stringent regulations and vulnerable to economic cycles.

Opportunities: Growing demand for IoT and wearable devices, increasing adoption of advanced automotive electronics and emergence of 5G technology.

Threats: Security issues, macroeconomic challenges, trade barriers and fluctuating raw material prices.

Key Takeaways

The global Analog IC market is expected to witness high growth due to increasing demand for consumer electronics and burgeoning automotive sector. The global Analog IC Market is estimated to be valued at US$ 72.56 Bn in 2023 and is expected to exhibit a CAGR of 7.5% over the forecast period 2023 to 2030.

The Asia Pacific region dominated the Analog IC market share in 2023 with China, Japan and South Korea being the major markets. Increasing electronics and automobile production in India and other Southeast Asian countries is further anticipated to drive the regional demand.

Key players operating in the 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. Texas Instruments Incorporated accounted for the largest revenue share in 2023 attributed to its diversified product portfolio for automotive, industrial and communication applications.

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