Analog Communication Devices Industry

Application Specific Communications Analog IC Market Analysis

The Global Application Specific Communications Analog IC Market is expected to register a CAGR of 6% during the forecast period.

• Analog communication ASICs are primarily used in telecommunication modules to detect, interpret, and transmit data signals. These ICs support multiple technologies and are designed to reduce the complexity of the electronic communication equipment used for various end-user applications. Furthermore, analog communication ASICs play an essential role in developing portable electronic devices such as mobile phones or navigation systems.
• The Analog ASICs are integral to various communication chips, including cellular modem chips, chip antennas, error correction chips, GPS and GPRS chips, Bluetooth chips, RF transmitters & transceivers, and other network and communication chips.
• With the demand for related products increasing, the communication industry is focusing on developing new connectivity technologies and chips that can facilitate the future requirements of the industry. Furthermore, the development of new-generation telecommunication technologies, such as 5G, is also creating a good market scenario for the growth of the studied market.
• For instance, in December 2021, Ensilica, a U.K.-based custom design house, announced that it is developing the cellular ASIC to support AST SpaceMobile's planned space-based cellular broadband network. AST SpaceMobile is working on a project to build what it claims to be the first global cellular broadband network in space to operate directly with standard, unmodified mobile devices.
• However, with miniaturization being one of the highly prioritized trends in the semiconductor industry, the growing demand for more minor-size chips is expected to challenge the growth of the studied market as scaling down the chip size significantly enhances the designing and production complexity.
• The COVID-19 pandemic significantly impacted the market's growth, as supply chain disruptions, especially during the initial phase of the pandemic, impacted the production capabilities of chip manufacturers. However, on a positive note, the increasing penetration of digital technologies, considerably since the outbreak of the pandemic, has increased the demand for high-band connectivity services across the globe, which is expected to have a long-term positive impact on the studied market.

Application Specific Communications Analog IC Market Trends

Increasing Penetration of Internet and Mobile Telephony Services to Drive the Demand

• The use cases for application-specific analog integrated circuits have expanded significantly in the past few years as they are widely used in portable communication devices such as mobile phones, laptops, tablets, etc. Communication ASICs are also commonly used in cellular base stations and telecommunication modules.
• In the last few years, mobile telephony and internet services penetration has grown significantly owing to increasing consumer awareness and expanding telecommunication networks. According to Ericsson, there were around 8.2 billion mobile subscriptions at the end of 2021, which is expected to increase to approximately 9.1 billion by the end of 2027. Such trends are expected to drive the demand for analog ASICs for communication applications.
• The arrival of 5G technology is expected to have a long-term impact on the growth of the studied market as it is expected to influence the analog ASICs demand across various end-user verticals. For instance, many millimeter-wave small cells are needed to address the requirements of 5G networks, increasing the number of base stations. According to Ookla, in 2021, the number of mobile base stations providing 5G services in the United Kingdom more than doubled to over 6,500 sites from 300 sites in 2020. As the analog ASIC represents a breakthrough in analog integration for high-speed designs that saves space, power, and cost, their demand is also expected to grow.
• Furthermore, the increasing pace of the 5G rollout is also expected to influence the demand for 5G-enabled devices as more and more consumers will switch to the high-speed offering of 5G services. For instance, according to Ericsson, the number of mobile 5G subscriptions is expected to reach 4.4 billion in 2027. The number of subscribers is expected to impact the demand for analog ASICs similarly.

Asia Pacific to Hold Significant Market Share

• The communication industry in the Asia Pacific region has witnessed remarkable growth in the last few decades. The key factors behind this growth are the development of digital skills, especially among the younger generation, the expansion of cellular coverage, and the affordability of mobile subscriptions. According to GSMA, currently, mobile broadband networks cover around 96% of the region's population.
• Furthermore, rapid industrialization and growth of the IT sector are also positively influencing the communication industry in the Asia Pacific region as these sectors are significantly driving foreign investments, enhancing the region's exposure to developed countries and new technologies. As the availability of fast and highly efficient communication networks is essential for these sectors' growth, both the public and private sectors have made significant investments in developing the region's communication industry.
• For instance, China has become the leading country in adopting the latest 5G technology. According to the Ministry of Industry and Information Technology, at the end of August 2022, the number of 5G base stations represented about 19.8% of total mobile base stations in China, up 5.5 percentage points compared to the end of 2021.
• Although other countries in the region have not been able to match the pace with China, they are expected to follow a similar growth pattern in the next three to five years. For instance, according to Ericsson, 4G is currently the dominant radio access technology in the South East Asia & Oceania region, with 5G subscriptions accounting for around 15 million at the end of 2021. However, 5G mobile subscriptions are expected to grow at a CAGR of about 83 percent, reaching 570 million in 2027. Such trends are expected to create significant growth opportunities for the studied market.

Application Specific Communications Analog IC Industry Overview

The Global Application Specific Communications Analog IC Market is moderately fragmented. The market has the presence of several established players holding significant market shares. However, the growing demand is also attracting new players, especially in the ASIC designing sector. Some notable vendors operating in the market include Renesas Electronics Corporation, Infineon Technologies AG, Microchip Technology Inc., and Texas Instruments.

• September 2022 - CEVA, Inc., a licensor of smart sensing and wireless connectivity technologies, introduced PentaG-RAN, a 5G baseband platform IP for ASICs targeting cellular infrastructure in both radio and base station configurations, including Remote Radio Units (RRU), and distributed units (DU), and from a small cell to Massive Multiple-Input, Multiple Output. The company has designed this platform to significantly reduce entry barriers for companies wishing to break into the new market opportunities available in Open RAN equipment.
• January 2022 - Omni Design Technologies, a provider of high-performance, low-power mixed-signal Intellectual Property (IP) solutions and EnSilica, a custom ASIC design and supply solution provider, entered into a partnership to work together to facilitate the development of the next generation of innovative products for applications such as 5G, communication systems, LiDAR, and radar.

Application Specific Communications Analog IC Market Leaders

Application Specific Communications Analog IC Market News

• March 2021 - Analog Devices introduced a new ASIC-based radio platform for O-RAN-compliant 5G radio units, designed to meet the evolving needs of 5G networks and shorten the time to market. This radio platform includes all the core functionality needed in an O-RAN-compliant 5G radio unit, including software-defined transceivers, a baseband ASIC, signal processing, and power to enable significant performance and form factor improvements.
• January 2021 - IQ-Analog Corporation has announced that its F1000 Antenna Processor Unit (APU), a full-Spectrum conversion wideband transceiver, was integrated into Lockheed Martin Corporation's next-generation digital prototype active electronically scanned phased array (AESA) sensor. F1000 is a monolithic application-specific integrated circuit (ASIC) that IQ-Analog developed to address next-generation communication, radar, and electronic warfare systems.