System in Package Market Worth 9.07 Billion USD by 2023

Manish Arya / On 2017-11-30 15:53:27

According to the new market research report "System in Package Market by Packaging Technology (2D IC, 2.5D IC, 3D IC), Package Type (BGA, SOP), Packaging Method (Flip Chip, Wire Bond), Device (RF Front-End, RF Amplifier), Application (Consumer Electronics, Communications) - Global Forecast to 2023", published by MarketsandMarkets™, the market is expected to grow from USD 5.79 Billion in 2017 to USD 9.07 Billion by 2023, at a CAGR of 9.4%. The factors that are driving the growth of this market are the growing demand for miniaturization of electronics devices, the impact of Internet of Things (IoT), and reduced time-to-market.

The market for 3D IC is expected to grow at the highest CAGR between 2017 and 2023. The growth of this market is mainly driven by the increasing need for advanced architecture in electronics products, growing need for miniaturized electronic devices, and growing use of tablets, smartphones, and gaming devices.

The market for FOWLP is expected to grow at the highest CAGR between 2017 and 2023. This growth is mainly attributed to the rising demand for semiconductor ICs for IoT application that allows devices to assemble data using sensors and actuators and transmit data to a centralized location on a real-time basis.

Among various applications, the consumer electronics application expected to account the largest size of the overall system in package market between 2017 and 2023. Consumer electronics products, such as mobile phones, tablets, netbook PCs, digital video cameras, navigation devices, and gaming controllers, are adopting the advanced architecture. Moreover, these products address features that increase the demand for miniaturized electronic devices with improved performance in consumer electronics. With all this development in the consumer electronics application, the demand for system in package would also rise.

APAC is expected to hold the largest size of the system in package market during the forecast period. The major factors driving the market in APAC are the presence of major semiconductor foundries and outsourced semiconductor assembly and test (OSAT) players including TSMC (Taiwan), UMC (Taiwan), ASE Group (Taiwan), SPIL (Taiwan), and JCET (China), proximity to major downstream electronics manufacturing operations, government-sponsored infrastructure support, tax incentives, and availability of skilled engineers and labor at a relatively low cost.

ASE Group (Taiwan), Amkor Technology (US), JCET (China), Chipmos Technologies (Taiwan), Chipbond Technology (Taiwan), KYEC (Taiwan), Intel (US), Samsung Electronics (South Korea), Texas Instruments (US), and Signetics (South Korea) are the major players operating in the system in package market.

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