The global analog integrated circuits market is expected to retain prominence owing to its small size, diverse functionality, and dynamic application areas such as LED lighting, healthcare monitoring, utility in automotive application, and collision prevention. Owing to their inherent flexibility and contraction, analog integrated circuits have been integrated in numerous sectors such as automotive products, consumer electronics products, biomedical products, and wearable sensor-based devices. Analog integrated circuits are anticipated to be deployed in automotives, communications, industrial, computing and storage, medical, and in consumer electronics sectors over the next few years.
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Market fragmentation restrains revenue and increases competition, strong competition leads to price reduction, and meltdown of economy affects growth opportunities and impacts revenues negatively. Discrete circuits are preferred over analog ICs owing to limited space constraints, thereby decreasing the returns. This is foreseen to hamper the analog integrated circuits market expansion.
The analog integrated circuits market can be categorized into application-specific and general purpose integrated circuits. Application-specific analog circuits function in specific domains such as consumer electronics, computing devices, automotive domains, and industrial domains. General purpose ICs, function in multiple domains such as voltage regulators, amplifiers & comparators, and data converters. Based on vertical sector applicability, the ICs can be segregated into industrial, administrative, automotive, communications, and consumer electronic sectors. Automotive and industrial sectors are poised to emerge as major application sectors for these ICs.
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Use of ICs in infrastructural, avionic, and dynamic industrial applications is expected to drive the analog integrated circuits market in the North American region. In Asia Pacific, China is anticipated to maintain its course of high growth on account of increased consumer electronics adoption by the tech-savvy population. Europe is anticipated to surface as a global leader on account of major automobile manufacturers that have their production units in Europe. Automotive leaders such as Volkswagen, Ford, Toyota, Renault, and BMW have largely encouraged the analog integrated circuits market expansion in Europe.
Analog ICs market can be segregated into small-scale IC fabrication companies and merchant IC companies. Merchant vendors incorporate a specific set of strategies to retain their legacy in the market such as extensive breadth of product sets, special product design skills, competitive price, and widespread worldwide distribution & support networks. New entrants focus only on the specific product category they deal with. For example, Taiwan Semiconductor (discrete semiconductors, voltage regulators, and Op Amps), GMT (audio, power management, and switches), and Richtek (LED drivers and power management) are some of the market players focusing on explicit domains.
Major analog IC market players include Texas Instruments Inc., Qualcomm Inc., Infineon Technologies AG, Analog Devices Inc., and STMicroelectronics NV.
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