System in Package (SiP) Technology Market Expected to Reach $34.2 Billion by 2030—Allied Market Research

According to a new report published by Allied Market Research, titled, “System in Package (SiP) Technology Market," The system in package (sip) technology market size was valued at $14.8 billion in 2020, and is estimated to reach $34.2 billion by 2030, growing at a CAGR of 9.7% from 2021 to 2030. Asia-Pacific is expected to be the leading contributor toward the system in package (SiP) technology market during the forecast period, followed by LAMEA and Europe.

System in package (SiP) technology is a packaging approach that combines numerous electronic sub components with other passive components on a single substrate. The key benefits of system in package (SiP) technology is that they are not only IC packages with many dies, but also incorporate active systems or subsystems within the IC package.

Growth of the global system in package (SiP) technology industry is anticipated to be driven by factors such advent of 5G network connected devices, high demand for compact electronics gadgets with internet connectivity, and rise in the number of the Internet of Things (IoT) devices. In addition, growing adoption of smartphones and smart wearables boost the market growth. However, higher level of integration leads to thermal issues acts as a major restraint for the market. On the contrary, high demand from Asia-Pacific is expected to fuel the market growth during the forecast period.

Moreover, developing nations tend to witness high penetration of system in package (SiP) technology products, especially in the automotive segment, which is anticipated to augment the system in package (SiP) technology market growth. Factors such as growing need for circuit miniaturization in microelectronic devices accelerate the market growth. Also, system in package design is in the latest trend.

The system in package (SiP) technology market is segmented on the basis of packaging technology, packaging method, end user, and region. By packaging technology, the market is classified into 2D IC packaging, 2.5D IC packaging, and 3D IC packaging. Depending on packaging method, it is categorized into wire bond and flip chip. On the basis of end user, market is divided into consumer electronics, automotive, telecommunication, industrial system, aerospace & defense, and others. Also, the report provides a detailed System in Package (SiP) Technology Market Analysis based on competitive intensity and how the competition will take shape in coming years

Region-wise, the System in Package (SiP) Technology market trends have been analyzed across North America, Europe, Asia-Pacific, and LAMEA. Asia-Pacific contributed maximum revenue in 2020. Also, between 2020 and 2030, the system in package (SiP) technology market in Asia-Pacific is expected to grow at a faster rate as compared to other regions. This is attributed to increase in demand from emerging economical countries such as India, China, and South Korea.  

KEY FINDINGS OF STUDY

• The 2.5D IC packaging segment is projected to be the major packaging technology, followed 3D IC packaging.
• Asia-Pacific and North America collectively accounted for more than 75% of the system in package (SiP) technology market share in 2020.
• India is anticipated to witness highest growth rate during the forecast period.
• The U.S. was the major shareholder in the North America system in package (SiP) technology market, accounting for approximately 70% share in 2020.
• By packaging method, the wire bond segment generated the highest revenue in 2020. However, the flip chip segment is expected to witness the highest growth rate in the future.
• Region-wise, the system in package (SiP) technology market was dominated by Asia-Pacific. Also, Asia-Pacific is expected to witness significant growth in the coming years.

The key players profiled in the report include, Amkor Technology Inc., ASE Group, Chipmos Technologies Inc., Fujitsu Ltd., Jiangsu Changjiang Electronics Technology Co., Ltd., Powertech Technologies Inc., Qualcomm Inc., Renesas Electronics Corporation, Samsung Electronics Co., Ltd., and Toshiba Corporation. These players have adopted various strategies such as partnership, acquisition, and product launch to strengthen their foothold in the industry.