Pune, India, Nov. 07, 2023 (GLOBE NEWSWIRE) -- Advent of 5G network in global market created lucrative opportunity for the market player to develop new line of electronics devices, having compatibility with 5G connectivity. Rising miniaturization of the electronics to optimize space and design is being fulfilled with system in package technology. New electronic devices require enhanced performance within similar space or compact space for which major companies are selecting SiP.
System in Package (SiP) Technology Market in terms of revenue was estimated to be worth $13.75 billion in 2019 and is poised to reach $22.01 billion by 2027, growing at a CAGR of 8.4% from 2020 to 2027 according to a new report published by The Insight Partners.
Semiconductor industry is evolving with innovations in product offering to support digitalization. Rising demand for the IoT based electronic devices to enhance connectivity is further propelling the System in Package (SiP) Technology Market growth.
Download Sample Pages: https://www.theinsightpartners.com/sample/TIPRE00005443/
Global System in Package (SiP) Technology Market Scope:
| Report Coverage | Details |
| Market Size Value in | USD 13.75 Billion in 2019 |
| Market Size Value by | USD 22.01 Billion by 2027 |
| Growth rate | CAGR of 8.4% from 2020 to 2027 |
| Forecast Period | 2020-2027 |
| Base Year | 2019 |
| Segments covered | Packaging Technology, Packaging Type, Interconnection technique, End-User Industry |
| Regional scope | North America, Europe, Asia Pacific, Middle East & Africa, South & Central America. |
| Country scope | Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Saudi Arabia, South Africa, South Korea, Spain, United Arab Emirates, United Kingdom, United States |
| Report coverage | Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends |
In 2019, Asia Pacific dominated the System in Package (SiP) Technology Market with more than 50% revenue share. The region is the largest consumer of smartphones; it accounted for the sales of 732 million units in 2018. The telecommunications sector is witnessing strong growth in Asia Pacific mainly due to the positive outlook toward the introduction of 5G networks and the strong presence of 4G networks. According to the Ericsson’s mobility report, 5G deployments would account for 66% of the total connectivity in Western and Northeast Asia by 2026, while in Southeast Asia and Oceania, it would hold 32% share; the rest of the shares would be held by the LTE (4G) technology. In terms of packaging technology, 2D ICs integrated with different technologies enhance the device performance. However, the increasing demand for microelectronics is a major factor challenging progress of the market for this segment, which can be resolved through extensive research and development. In terms of packaging type, the flip-chip/wire-bond SiP segment is anticipated to hold a major market share during the forecast period. Further, the pin grid arrays segment dominated the global System in Package (SiP) Technology Market, by interconnection technique, in 2019. Among the key end-user industries, the consumer electronics segment held the most significant market share in 2019.
The growing trend of adopting handheld electronic devices with small form factor is one of the major factors accelerating the SiP technology market growth. The miniaturization of electronics has influenced the industries such as military, aerospace, medical, media, retail, and consumer electronics. The devices with small form factor-based packages embed more functionality and serve as an alternative for traditional packaging systems. Personalized healthcare gadgets, thin smartphones, compact PCs, and others devices are embedded with processors, sensors, and RF modules, among other components, which are based on system in package technology. Continuous developments in advanced packaging technology such as 3D IC and 2.5D IC are further supporting the market growth by addressing the technical challenges.
Ongoing innovations in mobile solutions are enhancing device performance as smaller space of mobile devices confers enhanced connectivity and control. The System in Package (SiP) Technology Market players are also taking efforts to optimize this technology for better solution formation. For instance, in November 2020, SODAQ Company introduced new miniaturized SODAQ TRACK SOLAR device with 80 × 80 × 11.5 mm3 dimensions, using Nordic multimode NB-IoT/LTE-M nRF9160 SiP solution. Similarly, Apple Company uses system in package technology for upcoming devices to introduce miniaturized products. Thus, the rising development and demand for miniaturized electronics devices is driving the System in Package (SiP) Technology Market growth.
Global System in Package (SiP) Technology Market: Segmental Overview
On the basis of packaging technology, the System in Package (SiP) Technology Market is segmented into 2D IC, 2.5D IC, and 3D IC. The market for the 3D IC segment is anticipated to grow at the highest CAGR due to smaller packaging footprint. In 3D ICs, logic dies or memory dies are stacked upon each other to form connection using an active interposer. The 3D IC technology confers higher density in the given space, thus enabling more effective miniaturization of electronics than other packaging technologies. Other benefits of 3D IC include high speed, low power consumption, and enhanced performance. Further, increasing developments and adoption of 5G networking devices would also contribute to the growth of the market for 3D IC segment in the coming years. The 2D IC SiP accounted for more than 50% share in the System in Package (SiP) Technology Market in 2019. This packaging technology has strong roots in the market as it is traditionally being used in a wide range of electronics. It connects different discrete devices using a printed circuit board with their packages. The technology offers large and bulky circuit board, which hinders device performance, which is lowering its demand in various industries.
On the basis of interconnection technique, the pin grid arrays (PGAs) segment is projected to register a CAGR of more than 9.2% in the market during the forecast period. This interconnection technology is widely used in microprocessors that can be placed on grids, wherein pins are arranged vertically. Different types of PGAs such as ceramic, plastic, flip-chip, and staggered arrays are available in the market. The interconnection technique is a low-cost solution that is also suitable for new processors for faster data transmission. AMD is one of the companies using the PGA design for the Socket AM4 that is used in CPU and APU products.
Order a Copy of the Report https://www.theinsightpartners.com/buy/TIPRE00005443/
On the basis of the application segment, consumer electronics segment is expected to account for 40% of the overall System in Package (SiP) Technology Market, by end-user Industry, during the forecast period. Rising disposable incomes and increasing tech-savvy populations are boosting the adoption of advanced and compact consumer electronics, thereby augmenting the System in Package (SiP) Technology Market growth. The advent of compact smart wearable devices is further escalating the demand for SiP technologies. Advanced packaging systems that allow the packaging of maximum number of components on single board, in limited space, are supporting the latest trend of miniaturization of electronics devices.
Global System in Package (SiP) Technology Market: Competition Landscape and Key Developments
Amkor Technology, Inc., ASE Technology Holding Co. Ltd, ChipMOS Technologies Inc, GS Nanotech, JCET Group Co., Ltd., Qualcomm Incorporated, Samsung, Renesas Electronics Corporation, Texas Instruments Incorporated, and Taiwan Semiconductor Manufacturing Company, Limited are among the few major companies operating in the system in package (sip) technology market.
Recent Developments:
- In 2020, Renesas Electric Corporation joined Global Semiconductor Alliance.
- In 2019, JCET Group Co., Ltd ramps production at its facility in Incheon, South Korea of its new 12inch wafer bumping line.
- In 2019, Asus launched ASUS ZenFone Max Shot and ZenFone Max Plus (M2) smart phones in Brazil which are powered by Qualcomm’s first Snapdragon System in Package (SiP) chip. Further, the company announced development of Snapdragon SiP Factory in Jaguariúna, Brazil.
Go through further research published by The Insight Partners:
ICS Packaging and Testing Market - Global Analysis and Forecast to 2030.
Parallel System Market - Global Analysis and Forecast to 2030.
Flip Chip Packaging Market - Global Analysis and Forecast to 2030.
About Us:
The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.
Contact Us:
If you have any queries about this report or if you would like further information, please contact us:
Contact Person: Ankit Mathur
E-mail: sales@theinsightpartners.com
Phone: +1-646-491-9876
Press Release: https://www.theinsightpartners.com/pr/system-in-package-sip-technology-market
