New Articles

Power Management Integrated Circuit (PMIC) Market Is Estimated To Develop At A Substantial CAGR For The Duration Of The Prediction

semiconductor PMIC

Power Management Integrated Circuit (PMIC) Market Is Estimated To Develop At A Substantial CAGR For The Duration Of The Prediction

The Power Management Integrated Circuit (PMIC) Market is likely to surge at a vigorous 6.6% CAGR during the assessment period 2022 – 2027 and is anticipated to progress at a CAGR of 6.6% to reach US$ 28.1 Bn in 2022 and US$ 41.2 Bn by 2027.

  • Rising sales of smart devices across the globe
  • Growing energy harvesting initiatives
  • Introduction of compact and high-efficiency PMICs
  • Ongoing industrial automation and vehicle electrification

The FMI study finds that demand for power management integrated circuits  in communication equipment applications is projected to grow at a higher rate. In 2019, PMIC application in communication equipment is expected to grow at 8.5% y-o-y. The projected growth can be attributed to buoyancy in the telecommunication industry owing to increasing demand for connectivity and the adoption of communication equipment starting from analog switches to smartphones to communication satellites.

Personal Electronics Application Registers Leading Revenues

The FMI study finds that demand for power management integrated circuit (PMIC) remains higher in personal electronics devices. In 2018, sales of power management integrated circuits garnered revenues worth over US$ 5.7 billion in 2018 and held 27% of the global PMIC market share. The demand trend in personal electronics applications is expected to continue in 2019 at the rate of 6.6% y-o-y.

A plethora of personal electronics devices and their rising adoption rate in the wake of the increasing millennial population, expansion of the middle class, and increased purchase capacity are factors responsible for the increasing demand for power management integrated circuits (PMIC) in personal electronics applications. In addition, manufacturers in the consumer electronics industry highly utilize PMIC to optimize energy consumption in compact devices.

Industrial application of power management integrated circuit (PMIC) registered second highest revenues and accounted for over one-fifth of the market revenues in 2018. Demand for power management integrated circuit (PMIC) in the automotive sector closely follows revenues in industrial applications.

PMIC Marketplace Moderately Consolidated

Leading players in the power management integrated circuit (PMIC) marketplace share considerable revenues. Texas Instruments, STMicroelectronics, NXP Semiconductors N.V., ON Semiconductor Corporation, and Analog Devices, Inc. are prominent market players, of which ON Semiconductor is the front-runner.

Small and mid-sized players are leveraging strategies such as the introduction of low-priced products to establish a stronghold in the domestic market. Increasing revenues of these players are eating into the shares of prominent PMIC market players.

APEJ Revenues Continue to Surge

The FMI study finds that APEJ continues to register a leading position in the power management integrated circuit (PMIC) market. In 2018, over two-fifth of the PMIC market revenues were accounted for the APEJ region, of which over 67% share was registered from China and India.

The region presents significant growth of the end-user industries of the power management integrated circuit (PMIC) market, thereby garnering leading revenues. The FMI study finds that North America continues to register the second leading position in the power management integrated circuit (PMIC) market. In 2018, over one-fourth of the PMIC market revenues were accounted for the North American region, of which over 81% share was registered from the U.S.

Across the globe, increasing energy harvesting initiatives and their penetration into the semiconductor industry have generated lucrative opportunities for the power management integrated circuit (PMIC) market. As the global demand for electricity rises and the world enters the era of IoT and digitalization, demand for power management integrated circuits (PMIC) is set to rise in the coming years.

Competitive Landscape

Power management integrated circuit (PMIC) manufacturers focus on power management and power-efficient semiconductors that contribute to better energy efficiency and lower power consumption for a range of portable devices and applications in the consumer electronics sector.

  • In December 2020, MagnaChip Semiconductor Corporation announced a new line of power management integrated circuits (PMIC) by introducing its first UHD display panel PMIC for laptops. It includes multiple power management functions within a single chip.
  • In January 2020, Qorvo introduced a power management integrated circuit (PMIC) that expands the company’s portfolio of products for rapid in-vehicle charging of phones, tablets, and laptops.

The American Printed Circuit Assembly Market Affected by Trade Wars but Resilient to the Pandemic

IndexBox has just published a new report: ‘U.S. Printed Circuit Assembly (Electronic Assembly) Market. Analysis And Forecast to 2025’. Here is a summary of the report’s key findings.

After two years of growth, the U.S. printed circuit assembly market decreased by -16.4% to $35.1B in 2019. The market value increased at an average annual rate of +2.9% over the period from 2013 to 2019; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Over the period under review, the market hit record highs at $41.9B in 2018, and then contracted markedly in the following year. This rapid decrease was caused b a plunge in printed circuit imports from China.

In terms of supplying countries, South Korea ($4.1B), Taiwan ($4.1B) and China ($3.4B) were the main suppliers of printed circuit assembly to the U.S., together accounting for 67% of total imports (IndexBox estimates). Imports from Taiwan recorded tangible growth in 2019, while supplies from China dropped dramatically in the last year. This went along a new round of trade confrontation between the U.S. and China when the U.S. tries to limit the influence of Chinese technology companies on the American market.

Printed circuit assembly production, meanwhile, amounted to $18.3B in 2019. The total output value increased at an average annual rate of +1.4% from 2013 to 2019. Despite the pandemic, preliminary data show that in the first half, cumulative revenues of electronic component manufacturers did not decline from the previous year. This could indicate that the printed circuit assemblies and microelectronics market, in general, will be more resilient to a pandemic than many other markets.

Printed circuit assemblies constitute integrated electronic systems containing various semiconductors and other elements mounted on printed circuit boards. Such systems are widely used in the production of electronic, computer, digital, video, audio and other types of apparatus, in the aerospace, industrial automation, telecommunications and many other areas.

Therefore, the key factor determining the development of the printed circuit assembly market is the dynamics of industrial manufacturing, which, in turn, depends on economic growth, employment and income of the population, and investments, which altogether reflect the overall GDP growth. In addition, the growth of the market is also shaped by the growing digitalization of the economy, the development of smart technology and the Internet of Things, as well as the rapid development of mobile communication networks and the expansion of their coverage.

According to the World Bank outlook from January 2020, the U.S. economy was expected to slow down to +1.7% per year in the medium term, hampered by increasing global uncertainty, the U.S.-China trade war, and slower global growth.

In early 2020, however, the global economy entered a period of the crisis caused by the COVID-19 epidemic, due to which most countries in the world put on halt production and transport activity. The result will be a drop in GDP relative to previous years and an unprecedented decline in oil prices.

The U.S. is struggling with a drastic short-term recession, with the expected contraction of GDP of approx. -6.1% in 2020, as the hit of the pandemic was harder than expected, and unemployment soared due to the shutdown and social isolation. The combination of tight financial conditions and uncertainty regarding the length of the pandemic and the possible bottom of the related economic drop, as well as high volatility of financial markets, disrupt capital investments in the immediate term, which may put a drag on the expansion of the printed circuit assembly market.

An additional serious risk for the medium-term recovery is the growth of geopolitical tensions in the world, especially between the United States and China, which are being drawn into a political confrontation on a wide range of issues. If sanctions and restrictions are tightened, it will hit global trade and worsen economic growth both in the United States and China and in many other countries involved in supply chains.

In addition to the development of electronics and the Internet of Things, the pandemic has triggered a surge in demand for mobile audio and video services, which will continue in the medium term. In addition, in the coming years, the active proliferation of 5G networks is expected to continue, which will give a new powerful impetus to the use of the Internet and the further development of smart devices. All of this will drive demand for printed circuit assemblies as they are key components of electronic engineering.

Taking into account the above, it is expected that in the medium term, as the economy recovers from the effects of the pandemic, the market is expected to grow gradually. Overall, market performance is forecast to expand with an anticipated CAGR of +0.9% for the period from 2019 to 2030, which is projected to bring the market volume to 374M units (or $38B) by the end of 2030.

Companies Mentioned in the Report

Sanmina Corporation, Jabil Circuit, Xilinx, Flextronics International USA, Electronic Assembly Corporation, Mercury Systems, Ttm Technologies, Benchmark Electronics, Jabil Circuit, IEC Electronics Corp., Sypris Solutions, Flextronics America, Plexus Corp., M C Test Service, Express Manufacturing, American Technical Ceramics Corp, Sigmatron International, Magna Electronics, Park Electrochemical Corp., Creation Technologies Wisconsin, Diamond Multimedia Systems, Viasystems Technologies Corp, Mid-South Industries, Hadco Corporation, Kimball Electronics, Smtc Manufacturing Corporation of California, Flextronics Holding USA, Logic Pd, Viasystems

Source: IndexBox AI Platform