The programmable silicon market involves the design and manufacturing of configurable logic devices like field programmable gate arrays (FPGAs), complex programmable logic devices (CPLDs), and other programmable semiconductors. These devices allow chipmakers and designers to customize logic functions after manufacturing which enables rapid prototyping as well as flexibility at lower costs. Key advantages include quick time-to-market, easy re-programmability, and lower non-recurring engineering costs compared to application-specific integrated circuits. FPGAs are especially useful for data centers, high-performance computing, 5G infrastructure, autonomous vehicles, and AI applications that require high performance and power efficiency.
The Global Programmable Silicon Market is estimated to be valued at US$ 104.99 Bn in 2024 and is expected to exhibit a CAGR of 6.5% over the forecast period 2024 to 2030.
Key Takeaways
Key players operating in The Programmable Silicon Market are Becton, Dickinson and Company, B. Braun Melsungen AG, Nipro Corporation, ICU Medical, Inc., Baxter International Inc., Terumo Corporation, Smiths Medical, Fresenius Kabi AG, Eli Lilly and Company, JMS Co. Ltd., and NewIV Medical, Inc.. Key players like Xilinx and Intel are expanding their product portfolio and offering new FPGA families with advanced technologies like 3D packaging and heterogeneous integration.
The rising demand for fast processing and design flexibility from end-use sectors like consumer electronics, data centers, and automotive is spurring tremendous growth in the programmable silicon market. Programmable devices are increasingly being used for artificial intelligence, machine learning, and edge computing applications due to their high performance and customizability.
Advancements in manufacturing technology have allowed the development of 3D stacked FPGAs and massive multi-million logic cell devices. Companies are also developing new programming technologies like QuickPCI and QuickTime that reduces programming time from weeks to hours.
Market Trends
The growing demand for faster processing from industries is driving semiconductor companies to develop new FPGA architectures like system-on-chips (SoCs) containing both programmable logic and hard processor cores. SoC FPGAs offer higher integration and performance compared to traditional discrete solutions.
Major players are also focusing on heterogeneous integration by combining programmable logic with other chiplets like memory, graphics processors, and Intellectual Property (IP) blocks to build powerful and customizable System-in-Package (SiP) solutions. This trend allows for development of application-specific SiP solutions with optimal power, performance, and area characteristics.
Market Opportunities
Rising usage of AI and machine learning workloads is expected to spur demand for programmable accelerators and neural network processors. FPGA and CPLD vendors are developing new architectures and frameworks optimized for common deep learning and computer vision tasks.
Growth of 5G networks and deployment of edge servers presents a major market opportunity for programmable logic in base stations, edge routers, and other telecom equipment for tasks like protocol handling, traffic management etc. Programmable devices offer flexibility to customize solutions for evolving network architectures.
Impact of COVID-19 on Programmable Silicon Market
The COVID-19 pandemic has significantly impacted the growth of the programmable silicon market globally. The imposition of lockdowns across various countries led to disruptions in the supply chain and halted production activities. This adversely affected the manufacturing of programmable silicon. The decline in disposable incomes and economic slowdown also reduced the demand for programmable silicon from end-use industries like consumer electronics and automotive.
In the pre-COVID era, the programmable silicon market was growing at a substantial rate owing to the rising adoption of FPGA and CPLD in various applications. However, during the pandemic, the market experienced a decline in 2020. But some critical sectors like healthcare adopted programmable logic devices for developing medical equipment for COVID treatment, which supported market growth.
Now in the post-COVID period, the demand is returning to pre-pandemic levels as economic activities are restarting. The need for accelerated computing is also driving the programmable silicon market. Manufacturers are focusing on developing advanced FPGA and CPLD with high scalability and flexibility to gain from emerging opportunities across industries. The rising use of artificial intelligence and 5G networks will further boost market growth in the forecast period. Ensuring a sufficient and timely supply of raw materials and parts and prioritizing the healthcare sector are some strategies that can aid market recovery.
Geographical Regions with Highest Demand for Programmable Silicon Market
The North American region holds the highest share of the global programmable silicon market in terms of value. This is attributed to the large-scale adoption of programmable logic devices across industries like consumer electronics, data processing, and automotive in the U.S. and Canada. Rapid technological advancements and heavy investments in R&D by established as well as emerging players have strengthened the market in this region.
The Asia Pacific region is projected to be the fastest-growing market for programmable silicon during the forecast period. This can be accredited to increasing electronics and semiconductor manufacturing in countries like China, India, Taiwan, and South Korea. Moreover, improving living standards, rising disposable incomes, and the growing focus on industrial automation offer new opportunities for market growth. Continuous government support towards the development of indigenous electronics industries also aids market expansion in the Asia Pacific region.