System in Package Market to Reach USD 16.70 Billion by 2028

Vantage Market Research

Jan 21, 2022

The System in Package Market is expected to reach USD 16.70 Billion by 2028, growing at a Compound Annual Growth Rate (CAGR) of 9.8% in between 2022 to 2028. The instantaneous Research and Development (R&D) and technological advancements have formed a need for steadfast & compact electronic gadgets. Multiple electronic products with better advancement required the usage of IC packaging technology in memory, RF, and detectors to be merged into other devices. The lessening in wire size in SiP allows to improve the circuit efficiency and lower power utilization by managing the processing time & power distribution. The SiP technique enables the integration of various multichip modules, like DRAM, together with the lowest interference. Therefore, the growing usage of IC packaging technology is a factor for the growth of electronic gadgets, thus increasing the market demand.

Key Findings:

  • The 2.5-D IC segment is projected to expand at a steady CAGR over the forecast period owing to the increasing necessity of portable electronic products such as smartphones, digital cameras, laptops & tablets, wearable electronics, and household electronics.
  • The communication segment held a substantial market share in 2021. This share is due to the rising investments in R&D of these packaging technologies to sustain the stiff competition in the market.
  • Asia Pacific is expected to grow at the fastest CAGR during the forecast period. This surge is attributed to the rising demand for systems in packages in developing economies such as U.S., and Mexico.

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

The growing requirement of packed sensors with integrated packaging technologies like image detectors, environment sensors, and controllers are driving the interest of manufacturers in developing different ICs with a high benchmark of safety, time-to-market, and cost-effectiveness for different operations.

Asia Pacific is expected to dominate the global System in the Package Market owing to the increasing demand in countries, such as China, India, and Japan. The demand for SiP technology is more from the customer electronics industry, especially for smartphones and tablets thereby increasing the presence of big companies in this industry.

COVID Impact Analysis

The COVID-19 outbreak has affected various industries worldwide. Governments across the world implemented strict lockdown measures and social distancing norms in order to restrict the swift spread of the pandemic. Manufacturing facilities around the world were shut down during the initial stages of the pandemic. Moreover, the economic crisis after the pandemic might lead to a significant delay in the commercial roll-out of the System in the Package Market. Small and medium-scale companies are the backbone of technology providers and are witnessing a steep drop in revenue since the emergence of the pandemic in 2020. Hence, market players faced numerous challenges as disruptions in the supply chain were observed. However, things will improve in the second half of 2022 as more supplies will come online.

Recent Developments: -

May 2016- Amkor Technology teamed with Cadence (US) to design packaging assembly design kits (PADK) for the silicon-less integrated module (SLIM) and SWIFT packaging technologies.

September 2016- SPIL and Hon Hai Precision (Taiwan) form a strategic alliance. As both parties would offer IC wire bonding and wafer-level packaging technology for end-users.