FMI presents an impressive radio frequency integrated circuit market growth outlook for the assessment period from 2021 to 2031. As per the study, the market for radio frequency integrated circuits (RFIC) is anticipated to surpass a valuation of US$ 20.7 billion by 2021, growing at a CARG of over 8% during the forecast period in the comparison above 5.2% CARG registered in 2016 to 2020.
Increasing deployment of next-generation wireless networks such as Long-Term Evolution (LTE) and 5G networks is one of the primal factors propelling the demand for RFIC. Rising adoption of LTE networks across the globe has compelled electronic device and semiconductor manufacturers to utilize novel RFICs to make their products compatible with these networks. This will create an opportunities for the growth of the RFICs market in the coming years.
The demand for RFIC will grow at a swift pace owing to the proliferation of consumer electronic devices such as laptops, personal desktops, mobile phones, and data communication systems among others. As RFICs play a significant role in improving efficiency and high-frequency rectification, the increasing number of telecommunication devices and internet users will create lucrative sales opportunities for RFIC over the forecast period.
Consumer electronics industry is likely to dominate the application segment, accounting for 29% of demand for RFIC in 2031. Besides this, application in medical devices will continue increasing at CAGR of 9.4% between 2021 and 2031.
“To capitalize on increasing demand for connected devices and wireless products, leading players in the market are focusing on forging strategic collaboration and acquisition with electronic device manufacturers,” says the FMI analyst.
Key Takeaways from Radio Frequency Integrated Circuit Market Analysis
- The U.S. is leading the market in North America, accounting for a market share of more than 74% in the region through 2031.
- Owing to the development in information technology, the demand for RFIC in the U.K. is anticipated to rise at a CAGR of 8% over the forecast period.
- GCC countries are estimated to exhibit growth at a CAGR of around 13.2%, favored by the rise in the number of telecom base stations and communication satellites.
- China is dominating the East Asia Pacific market and is projected to hold a market share of over 43% by 2031.
- Radio Frequency switch IC is expected to lead the product segment, accounting for over 31% of the market by the end of 2021.
Key Drivers
- Rising demand for wireless products and connected devices is spurring the sales of RFIC.
- Surge in adoption of LTE and 5G technology is boosting the demand for RFIC products.
- Ongoing advancement in the automotive industry is driving the growth of the market.
- Increasing applications in the consumer electronics sector are bolstering the sales of RFIC.
Key Restraints
- Volatility in the cost of raw materials is hampering the growth of the RFIC market.
- The outbreak of COVID-19 has negatively impacted the sales of RFIC amidst lockdown.
- Increasing demand small size RFIC products are posing a challenge for the market growth.
Competitive Landscape
Leading players operating in the RFIC market are aiming at establishing strategic collaboration and acquisition with other market players to expand their market share and to cater to the increasing demand of an expanding customer pool. For instance,
In October 2020, STMicroelectronics, French-Italian multinational electronics and semiconductors manufacturer announced acquisition of SOMOS Semiconductor, a power amplifier and RF front-end-module specialist. With this acquisition, STMicroelectronics reinforces its specialist staff, roadmaps, and IP of front-end modules for the internet of things (IoT) and 5G markets.
In May 2020, Murata, A Japanese Company, announced establishment of a new ew group company named, Sendai Murata Manufacturing Co., Ltd. The company aims to enhance the high-frequency electronic component business in the region.
Some of the key players operating in the radio frequency integrated circuit market profiled by FMI are:
- Infineon Technologies AG
- Analog Devices, Inc.
- Texas Instruments
- NXP Semiconductors
- STMicroelectronics
- Renesas Electronics
- Microchip Technology Inc.
- Silicon Labs
- Skyworks Solutions, Inc.
- Samsung
- Broadcom, Inc.
- Cypress Semiconductor
- AnSem N.V.
- Maxim Integrated
- Murata Manufacturing Co., Ltd.
