Global Field-programmable Gate Array (FPGAs) Market: Increasing Adoption in Telecom Sector to Contribute to Revenue Gains, says TMR

The global field-programmable gate array (FPGA) market is highly concentrated, with the top three companies representing more than 90% of the overall market in 2013. The majority of revenue of the key players in this market comes from the telecom and wireless sector, finds Transparency Market Research (TMR) in a new study. The top three companies are Xilinix Inc., Altera Corp., and Lattice Semiconductor. “Mergers and acquisitions and development of energy efficient and breakthrough capacity products are a part of the key strategies for the leading players,” says the author of the report. The strong presence of existing players and their extensive distribution channels pose a high entry barrier for the new entrants. 

The valuation of the global FPGA market was US$6.41 bn in 2015 and is poised to rise at a CAGR of 8.6% from 2014 to 2020, reaching a value of US$9.73 bn by 2020. By type, the static random-access memory (SRAM) segment will continue to dominate the market until 2020, holding more than 76% of the overall market revenue. Due to their advantages such as fast in-circuit re-configuration and high radiation tolerance, they are being increasingly used in the military sector. Moreover, the increasing use of this technology in wireless sensors and imaging is projected to drive the usage of SRAM-based FPGAs in the near future. Owing to the aforementioned factors, the segment is anticipated to rise at a CAGR of 8.7% during the same period. 

Asia Pacific to Account for Leading Share in Revenue Pie Owing to Rapid Industrialization 

Geographically, Asia Pacific will lead revenue generation through 2020. The growth of the FPGA market in Asia Pacific is driven by countries such as India, China, Japan, South Korea, and Taiwan. Rapid industrialization and robust growth of the consumer electronics, automotive, and telecom sectors are propelling the growth of the region. Owing to these factors, the region is expected to expand at a CAGR of 9.1% during the forecast period. North America and Europe are likely to offer immense growth potential owing to heavy investment in technological innovation for military and aerospace applications and improving wireless infrastructure. 

Rising Demand for High-speed Internet to Promote Deployment of FPGAs 

With the increasing demand for high-speed internet in the wireless telecom segment, the demand for wider bandwidth is also growing. Hence, telecom providers are deploying wide varieties of FPGAs to make the base station compatible with legacy networks, thereby driving the global FPGA market. Medical imaging equipment calls for several processing requirements on the basis of the definite data acquisition principles and algorithms used in image processing. Due to the advantages of FPGA over its alternate imaging equipment such as positron emission tomography (PET) and computerized tomography (CT), it is being increasingly used in diagnostic imaging devices. Moreover, the increasing demand for smartphones and proliferation of electronic content in automobiles are driving the market. 

Availability of ASIC to Hamper Growth Prospects 

Application-specific standard product (ASSP) and application-specific integrated circuit (ASIC) usage are parallel to that of FPGA in several application areas. ASIC provides a full custom capability for design, since the device is developed to design specifications. Furthermore, lower unit costs and higher speed as compared to FPGA for high volume designs are boosting its growth. Therefore, the increasing adoption ASIC is impeding the growth of the global FPGA Market. On the other hand, the increasing usage of FPGA in financial data processing due to rising demand to process large volumes of data with fast results is likely to create growth opportunities for the market. 

The information presented in this review is based on a Transparency Market Research report, titled,“FPGA Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014-2020.” 

The FPGA market has been segmented as follows: 

Global FPGA Market, by Type

  • SRAM
  • Flash
  • Antifuse 

Global FPGA Market, by Application

  • Consumer Electronics
  • Automotive
  • Industrial
  • Data Processing
  • Military and Aerospace
  • Telecommunication
  • Others

 Global FPGA Market, by Geography:

  • North America
  • Europe
  • Asia Pacific
  • Rest of the World

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