How Has the Advanced Packaging Technologies Market Size Evolved in Recent Years?
The advanced packaging technologies market has seen considerable growth due to a variety of factors.
• The market size of advanced packaging technologies has seen considerable growth in the past few years. The market which was worth $7.24 billion in 2024 is projected to increase to $8.16 billion in 2025, demonstrating a compound annual growth rate (CAGR) of 12.6%.
The growth during the historic period can be credited to the expansion of consumer electronics, mobile computing, improved thermal management, automotive electronics, and environmental factors.
What is the Forecasted Market Size and CAGR for the Advanced Packaging Technologies Market?
The advanced packaging technologies market is expected to maintain its strong growth trajectory in upcoming years.
• In the coming years, the market size of advanced packaging technologies is anticipated to expand rapidly. Predicted to reach $14.22 billion by 2029, this market is projected to grow at a compound annual growth rate (CAGR) of 14.9%.
The push factors behind this surge during the forecast period are heterogeneous integration, quantum computing, flexible and stretchable electronics, the resilience of the supply chain, and smart manufacturing. Furthermore, the period ahead will likely see trends like advanced interconnect technologies, fan-out wafer-level packaging, the system-in-package, thermal management solutions, and embedded packaging for IoT devices.
Which Factors Are Boosting Growth In The Advanced Packaging Technologies Market?
The expansion of the advanced packaging market is anticipated to be fueled by the escalating demand for consumer electronics. This term encompasses any electronic gadget or device that consumers purchase for regular, personal, non-professional use. Advanced packaging, due to its significant role in shaping the product's sophistication, can be influenced by the demand created by consumer electronics. For example, the Japan Electronics and Information Technology Industries Association, a trade association based in Japan, reported in May 2023 that the total output of electronic equipment in Japan was 771,457 units. Production of consumer electronics had increased to 32,099 units, a rise from 25,268 units the previous year, in May 2022. Thus, the increase in consumer electronics demand is propelling the advanced packaging market's expansion.
What are the Market Segments in the Advanced Packaging Technologies Market?
The advanced packaging technologies market covered in this report is segmented –
1) By Type: 3D Integrated Circuit, 2D Integrated Circuit, 2.5D Integrated Circuit, Other Types
2) By Product: Active Packaging, Smart And Intelligent Packaging
3) By End Use Industry: Automotive And Transport, Consumer Electronics, Industrial, IT And Telecommunication, Other End Use Industries
Subsegments:
1) By 3D Integrated Circuit: Through-Silicon Vias (TSVs), Monolithic 3D ICs
2) By 2D Integrated Circuit: Flat Packaging, Chip-on-Board (CoB)
3) By 2.5D Integrated Circuit: Interposer-Based Packaging, Silicon Bridge Technologies
4) By Other Types: Fan-Out Wafer Level Packaging (FOWLP), System-in-Package (SiP), Multi-Chip Modules (MCM)
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What Trends are Shaping the Advanced Packaging Technologies Market?
Leading enterprises in the advanced packaging technologies market are focusing on developing innovative solutions for enhanced packaging to consolidate their dominance in semiconductor solutions. Such advanced packaging solutions include the usage of novel methods, materials, and devices, aimed to enhance packaging efficiency, product protection, and functionality. These improvements may come in the form of smart features, automation, or increased sustainability. For example, in October 2023, the Taiwan-based Semiconductor Engineering company, ASE Group, unveiled its Integrated Design Ecosystem. This platform accelerates silicone package design efficiencies, effectively cancelling out half of the cycle time. This ecosystem boosts collaboration and optimization in the design process, making for speedier iterations and increased performance in advanced packaging solutions. This innovation aligns with the growing demand for high-density packaging required for applications like artificial intelligence (AI), high-performance computing, and data centers.
Who Are the Key Players in the Advanced Packaging Technologies Market?
Major companies operating in the advanced packaging technologies market include:
• Samsung Electronics
• Taiwan Semiconductor Manufacturing Company
• Intel Corporation
• International Business Machines
• Qualcomm Technologies
• Advanced Semiconductor Engineering (ASE)
• ASE Technology Holding Co. Ltd.
• Texas Instruments
• Shin-Etsu Chemical Co. Ltd.
• Renesas Electronics Corporation
• GlobalFoundries Inc.
• Sanmina Corporation
• Amkor Technology
• Jiangsu Changjiang Electronics Technology
• STATS ChipPAC
• Tongfu Microelectronics
• Powertech Technology
• ChipMOS Technologies Inc.
• United Test and Assembly Center Holdings Ltd.
• Unisem (M) Berhad.
• Greatek Electronics
• Nepes Corporation
• SFA Semicon
• SÜSS Microtec
• China WLCSP Co. LTD.
• Universal Instruments Corporation
• Brewer Science
• Chipbond Technology Corporation
• Deca Technologies
• Siliconware Precision Industries
• Lam Research Corporation
• Toshiba Electronic Devices & Storage Corporation
• King Yuan Electronics Co. Ltd.
• Semiconductor Manufacturing International Corporation
• Jiangsu Changjiang Electronics Technology Co. Ltd.
• Hana Micron Inc.
• IBIDEN Engineering CO. LTD.
• Aehr Test Systems
What are the Regional Insights into the Advanced Packaging Technologies Market?
Asia-Pacific was the largest region in global advanced packaging technologies market in 2024. The regions covered in the advanced packaging technologies market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
