The market in APAC is expected to grow at the highest rate during 2021–2026. Increasing demand for consumer electronics, especially smartphones, is expected to drive the growth of the semiconductor IP market in APAC
The global Semiconductor IP market is expected to grow from USD 5.5 billion in 2021 to USD 7.2 billion by 2026. This represents a CAGR of 5.4 per cent. Increasing the advancements for multicore technology across various sectors as well as rising demand for modern SoC (system on chip) designs for different applications are the primary factors driving the market growth.
The market in APAC is expected to grow at the highest rate during 2021–2026. Increasing demand for consumer electronics, especially smartphones, is expected to drive the growth of the semiconductor IP market in APAC. China is expected to hold the largest market share in APAC by 2026.
“Moreover, growing adoption of semiconductor IPs in consumer electronics, telecommunications & data center as well as automotive verticals will drive the demand for this technology in the near future,” read a report by Markets & Markets.
The processor IP segment is expected to hold a major share of the semiconductor IP market during the forecast period. 5G technology is making massive increments in speed, bandwidth, and data throughput for automobile and mobile applications by introducing carrier aggregation and increased throughput with advanced modulation via mmWave spectrums. Such advancements have increased the complexity of infrastructures, basebands, and application processor technologies. To address this issue, new innovative processor IPs are required.
The semiconductor IP market for the automotive verticals is expected to grow at the highest CAGR during the forecast period due to the increasing applications of microprocessor units (MPUs), microcontroller units (MCUs), sensors, analog integrated circuits (ICs), interfaces, and memory in autonomous and premium cars. The introduction of technologies such as advanced driver assistance systems (ADAS), adaptive cruise control, and intelligent parking assistance systems are expected to further boost the market growth. Furthermore, the market growth can also be attributed to the increased demand for vehicle connectivity and the growing significance of connected cars.
