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3D IC Market to Grow Above 79% CAGR to 2019
December 16, 2015 | PRNewswireEstimated reading time: 3 minutes
The analysis on 3D IC market says continuous miniaturization of electronic devices and quick replacement cycle of mobile devices are expected to increase the demand for 3D ICs during the forecast period. Further, the increasing collaboration and R&D expenditure will help the vendors to come up with new products, which will increase the number of applications of 3D ICs during the forecast period.
According to the report, the greater demand for high functionality devices and automated products is forcing original equipment manufacturers (OEMs to integrate their devices with 3D ICs, thereby creating demand for 3D ICs during the forecast period). The proliferation of IoT devices has enabled the OEMs to innovate and improve their products by using 3D ICs. The increase in awareness of energy-efficient lighting is expected to create the demand for 3D LEDs during the forecast period.
The research analyst predicts the global 3D IC market to grow at a CAGR above 79% during the forecast period. The demand for compact and high-performance ICs in smartphones, tablet PCs, smart TVs, automotive products, and heavy equipment is the primary growth driver for this market. In comparison to 2D ICs, they have better performance and high bandwidth.
Moreover, 3D ICs have a lesser number of interconnections between the packages, consumes less power, and require less space on electronic boards.
Product segmentation and analysis of the 3D IC market in this research covers Memories, Sensors, MEMS and LEDs. The memory product segment dominated the market during 2014, with a market share of over 62%. Technological advances such as high storage capacity and less power consumption are increasing the adoption of 3D NAND and DDR4 DRAM in smartphones, tablet PCs, consumer electronics, and automotive products, thereby driving the growth of the 3D memory chips.
Geographically, APAC accounted for 52% of the market share during 2014 and is expected to grow at a CAGR of 86% during the forecast period. The high growth in memory product segment and presence of several prominent manufacturers in the mobile and consumer electronics market such as Xiaomi, Samsung, LG, HTC, ZTE, Huawei, Lenovo, and Sony is expected to create a high demand for 3D ICs in the region during the forecast period.
The global 3D IC market is at the nascent stage and manufacturers are aiming for the first mover advantage by making an early entry into the market. The vendors in the market compete on the basis of price, quality, innovation, and technology. Collaborations between OSAT, IDMs, and OEMs is expected to bring down the cost of 3D ICs in the coming years.
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