According to the latest market research study released by Technavio, the global SiP market is expected to grow at a CAGR of more than 10% during the forecast period 2016-2020.
This market research report by Technavio provides an in-depth analysis of the market in terms of revenue and emerging market trends. The report also includes an up-to-date analysis and forecasts for various market segments and all geographical regions.
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Technavio research analysts categorize the global SiP market based on application type:
Global SiP market share by application 2015
|
Communications |
42.45% |
|
Consumer electronics |
20.33% |
|
Computers |
18.06% |
|
Automotive |
10.43% |
|
Medical |
8.73% |
Source: Technavio
Communications sector
The communications sector accounted for around 43% of the global SiP market in 2015 and is anticipated to grow significantly during the forecast period. The demand for fast processing capabilities of smartphones and the smooth network connectivity will propel the communications sector to retain its position as the largest application segment. The high dominance of this segment is due to the increased demand for faster, lighter, and cheaper components being integrated into network infrastructure and devices such as smartphones.
“The advent of smartphones has increased the demand for better-powered and smaller-sized ICs. With over 2 million people using smartphones, the demand for ICs has also increased as it is the core performer for smartphones. To ensure small size with high performance, ICs require a strong packaging technology. This upgrades the demand for SiP packaged chips due to their lower costs and shorter time to market,” says Chetan Mohan, a senior analyst at Technavio for research on semiconductor equipment.
Consumer electronics sector
In 2015, the consumer electronics sector accounted for around 20% of the global SiP market. This sector includes ACs, TVs, refrigerators, home theatre, and washing machines. Consumers have become aware and prefer smart, efficient, and power saving household equipment. This increased preference has induced the manufacturers of household equipment to deliver products incorporated with improved semiconductor equipment, capable of delivering high performance with more functionalities and reduced power consumption and costs, with small sizes. The production of these small size electronic devices require advanced ICs packaged with the usage of TSV technology of 3D semiconductor packaging technique. These technologies produce minimum size and a maximum output of ICs manufactured. The growth in the consumer appliances will boost the growth in the SiP market.
Computers sector
In 2015, computer sector accounted for around 18% of the global SiP market. The computer sector comprises the sales of PCs and laptops. The expansion of the tablet and smartphone market has affected the demand for PCs and laptops. Technavio expects that the growth in the popularity of mobile devices, smartphones, and phablets with computing devices, will affect the market for computers significantly over the next four years.
Automotive sector
In 2015, automotive sector accounted for around 11% of the global SiP market. The growing car unit shipments globally is expected to drive growth in the global SiP market. The presence of intense competition has led the focus of OEMs to provide better features at comparatively low prices. In the price sensitive countries such as china and India, OEMs are under pressure to reduce the prices. SiPs are the direct alternatives for SoCs, which are facing design issues and incorporation problems in various automotive applications, leading to the growth of the automotive SiP market.
Medical sector
The medical sector accounted for around 9% of the global SiP market in 2015. Among all sectors, this segment has the lowest shares due to the minimal adoption of implantable devices. To survive and stay ahead of the competition, it becomes mandatory for the semiconductor industry to produce high-density products. The key driving factors for the market is the package size and package density as the market is highly affected by processing capabilities and the integration of complex components. SiP modules offer space savings in portable and handheld medical devices. It also offers added functions at reduced dimensions for medical devices such as implantable hearing aids and endoscopy cameras. In addition, it offers shorter signal lines resulting in better frequency response to the medical device manufacturers. By increasing diversity from a modular architecture these benefits allow greater design flexibility. High-frequency signals can be kept within the modules, reducing the radio frequency (RF)-specific design competence required for the main board.
The top leading vendors operating in the global SiP market are:
- Amkor Technology
- ASE
- JCET
- SPIL
- UTAC
Other prominent vendors in the market are ChipMOS Technology, ChipSiP Technology, NANIUM, Octavo Systems, and Samsung Electro-Mechanics.
A more detailed analysis is available in the Technavio report titled, ‘Global SiP Market 2016-2020’. Technavio also customizes reports by other regions and specific segments upon request.
Other related reports:
- Global Semiconductor Packaging Equipment Market 2016-2020
- Global 3D Semiconductor Packaging Market 2016-2020
- Global Semiconductor Packaging and Assembly Equipment Market 2016-2020
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