System In Package Market

System In Package Market: By Packaging Technology, Packaging Type, Packaging Method, Device, Application, and Region

Market Synopsis:

Global System In Package market is valued at USD 8.68 Billion in 2021 and is projected to attain a value of USD 16.70 Billion by 2028 at a CAGR of 9.70% during the forecast period, 2022–2028. The System In Package (SiP) is defined as an assembly, which includes one or more integrated circuits (IC) logically interconnected on a common substrate, but not physically stacked. The most popular SiP is the mobile phone with all its components like processor, LSI and camera modules included inside the same case. As of March 2020, there are 1275 registered patents worldwide that use "SiP" in the description including US patents that were granted by USTPO.

Growing Miniaturization of Integrated Circuits to Drive Growth of System In Package Market

Demand for System In Package (SiP) has increased with growing microelectronics industry due to the need to include more components onto a single chip board. The SiP trend has been more popular mostly in the mobile phone industry. There is a great demand for such products to be shrunk and lighter while maintaining high performance and functionality of their components through reduction of on-chip wiring and improved heat dissipation efficiency.

ICs are getting smaller and functional with time, which makes it difficult to reduce them without removing any functions from it. This triggers the concept of System In Package (SiP) that includes one or more ICs logically interconnected on a common substrate but not physically stacked.

Market Segmentation:

Global System In Package market is by packaging technology, package type, packaging method, device, application, and region. By packaging technology, which is further segmented into 2D IC, 2.5D IC, 3D IC). By package type, the market is bifurcated into BGA, and SOP. The packaging method segment is sub segmented into flip chip and wire bond. By device, the market is segmented into RF front-end and RF amplifier). By application, the market is segmented into consumer electronics and communications.

By Device, RF Front-End device to Dominate the System In Package Market

An increasing number of smartphones and tablets possess multiple functions such as navigation and infotainment systems. To realize diverse features in compact devices, integration of multiple chips is inevitable and RF front-end devices are needed to fulfill the demand. Wherein, RF front-end devices allow multiple chips, including a microcontroller and baseband IC to be mounted on one device. This enables further miniaturization of products since the integral mounting of multiple components in itself reduces size. Moreover, smartphones and tablets usually require power management IC (PMIC) for efficient power supply, which results in integration of multiple chips. As such, advanced packaging technology like system-in-package (SiP) is necessary to control thermal interference among various chips and meet high-density mounting demand.

By Application, Consumer Electronics is Holding Largest Share of the System In Package Market

The SIP for consumer electronics is currently experiencing the highest among among all major packages, with a growth rate of over 9.8% annually. SIPs are used in applications with high power density and need to be highly reliable. These include smartphones, tablets, notebooks & ultrabooks, handheld games consoles, cameras, camcorders, etc., which have relatively smaller batteries compared to devices such as laptops or TVs that use larger AC adapters.

The consumer market is highly fragmented with many different applications and types of devices. This means that there exists a need for tailor-made solutions to meet the specific requirements of each product design, which has driven the growth in SIPs. Consumer electronics are powered by batteries, but they burn out quickly if their power consumption characteristics are not efficient enough. With increased dependency on electronic devices, there is an urgent need to develop more efficient technologies that can reduce the power consumption without compromising on device performance. Systems in Package play a vital role in providing greater battery life along with reduced size & weight of the end-product. The demand for higher processing speeds & improved mobile broadband connectivity also increases data transmission rates between various components within the system. Such demands are expected to drive the growth of the consumer electronics market in the coming years.

Asia Pacific is the System In Package Market

The Asia-Pacific region remains the largest market for System In Package (SiP) technology with shipments forecast to account for over 38% of all SiPs sold worldwide by 2022. In addition to being a major market, Asia Pacific also accounts for some of the leading applications using SiPs today including smartphones, wearables and tablets as well as enabling emerging markets such as virtual reality (VR), augmented reality (AR), Internet of Things (IoT), and automotive.

In 2017, the Asia Pacific SiP market was worth US$4.2 billion, a 27% increase from the previous year underpinned by demand for smartphones while shipments in this segment grew 29% largely due to falling average selling prices (ASPs). The other three major applications currently contributing to the regions SiP revenue are wearables, tablets and consumer electronics although each of these markets remain relatively small when compared with phones; combined they only accounted for around 25% of SiPs sold in 2017 that value is expected to grow 12% per annum over the next seven years.

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Key Players:

Some of the key players in the global System In Package market are Amkor Technology (US), ASE Group (Taiwan), SPIL (Taiwan), UTAC (Global A&T Electronics) (Singapore), and Powertech Technology (Taiwan).

The System In Package is Segmented as Follows: