The analog IC market refers to integrated circuits that have continuous or analog input and output signals, as opposed to the digital circuits that deal with discrete signals. Analog ICs find applications in a wide array of electronic devices for functions such as power management, audio signal processing and temperature or voltage regulation. Some common analog ICs include operational amplifiers, comparators, data converters, voltage regulators and thermistor amplifiers. They are widely incorporated in electronic devices to handle real-world signals that represent continuous properties like temperature, pressure, light intensity or sound volume.

The global analog IC market is estimated to be valued at US$ 83.59 Bn in 2024 and is expected to exhibit a CAGR of 16% over the forecast period 2024 to 2031.

Driven by rising penetration of Internet-of-Things enabled smart devices as well as emergence of autonomous vehicles, analog ICs catering to applications in automotive, industrial instrumentation and consumer electronics are witnessing increasing demand. Their abilities to transfer voltages and currents accurately while handling higher power levels have rendered them suitable for diverse array of high-performance systems.

Key Takeaways

Key players operating in the analog IC market are Illumina, Inc., Thermo Fisher Scientific, Inc., Qiagen N.V., F. Hoffmann-La Roche Ltd., Foundation Medicine, Inc. (Roche), Invitae Corporation, NeoGenomics Laboratories, Inc., Myriad Genetics, Inc., Genomic Health, Inc. (Exact Sciences Corporation), Caris Life Sciences, ArcherDX, Inc. (Invitae Corporation), Guardant Health, Inc., Personal Genome Diagnostics Inc., Biocept, Inc., Tempus Labs, Inc. Continuous technological advancements by these companies to develop high-performance, low-power analog solutions have propelled their dominant positions in the market.

Rising penetration of smartphones, wearables, automobiles and industrial equipment integrated with connectivity and advanced sensing capabilities has surged the demand for analog ICs worldwide. Further, their abilities to handle real-world signals with high accuracy and reliability have rendered them indispensable in biomedical devices, avionics systems and energy infrastructure.

North America, China and Europe currently represent the largest and most lucrative markets for analog ICs globally. However, developing economies in Asia Pacific and Middle East are emerging as high-growth regional markets propelled by rapid industrialization and rising living standards. Many leading analog IC manufacturers are also establishing design and production facilities in these regions to capitalize on the opportunities.

Market Drivers

Analog IC Market Growth for consumer electronics such as smartphones, laptops, gaming consoles and smart home devices integrated with latest connectivity, display and imaging technologies acts as a key driver for the analog IC market. Advanced System-on-Chip solutions incorporating high-performance analog and mixed-signal peripherals have enabled development of more immersive and responsive consumer electronic experiences. Furthermore, burgeoning sales of electric and hybrid vehicles owing to stringent emissions regulations have augmented the need for high-accuracy automotive analog ICs in motor control units, battery management systems and ADAS applications.