The APAC SiP technology market is expected to grow from US$ 6,843.3 million in 2019 to US$ 9,881.8 million by 2027; it is estimated to grow at a CAGR of 7.0% from 2020 to 2027.
The SiP technology has a huge opportunity in the smartphone and PC market to offer advanced processors, transmitters, and other components. Technology is improving the device performance and offering better space utilization solution. A few market players are developing processors and other components using the SiP technology, while for others it is a great opportunity to innovate new solution for smartphones and PC processors. For instance, in March 2019, Asus, one of the leading smartphone brands in the APAC market, introduced new ZenFone Max Shot and ZenFone Max Plus M2 smartphones equipped with Qualcomm's new Snapdragon SiP1 chip. According to the Ericsson, there were almost 4 billion mobile connections across APAC in 2016, which are expected grow to 4.6 billion by 2021. Therefore, increasing demand in APAC shows the potential for SiP technology in the smartphone industry. Additionally, demand for wearable technology and IoT is expected to grow substantially that would fuel the growth of the APAC SiP technology market during the forecast period.
Based on end-user industry, the consumer electronics segment led the APAC SiP technology market in 2019. Rising disposable income and tech-savvy population are boosting the adoption of advanced and compact consumer electronics across the region, thereby augmenting the SiP technology market growth. The advent of compact smart wearable is further enhancing the demand for SiP technologies. Advanced packaging systems that allow packaging of the maximum number of components on single board with limited space are supporting the latest trend of miniaturization of electronics devices. For example, in November 2019, Apple launched AirPods version 3 based on the compact SiP solution to offer improved Siri commands, clearer audio, noise-cancelling capabilities, and more.
The COVID-19 outbreak was first reported in China. China, India, South Korea, Japan, and other countries are increasingly moving toward the new networking solution such as 5G, 4G, and VoLTE. China and India are the biggest manufacturing hubs in the region and have increasing focus toward the industrialization. Lockdown, imposed due to COVID-19 outbreak, is hindering the market growth as businesses are remaining close. Manufacturing industry is also hampered, but soon its growth is expected to get recovered by enhancing the production capabilities in second half of the year 2021. The demand for many advanced electronics products such as smartwatch, smart wearable, and healthcare machines is rising at the significant rate. Companies in Asia are also restructuring their capabilities by adopting various strategies such as automation, partnership, and acquisition. For instance, Universal Scientific Industrial (Shanghai) Co., Ltd. acquired the Asteelflash Group to utilize their production facilities for increasing production of SiP modules and other electronics devices.
The overall APAC SiP technology market size has been derived using both primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. The process also serves the purpose of obtaining an overview and forecast for the APAC SiP technology market with respect to all the segments pertaining to the region. Also, multiple primary interviews have been conducted with industry participants and commentators to validate the data, as well as to gain more analytical insights into the topic. The participants of this process include industry experts such as VPs, business development managers, market intelligence managers, and national sales managers, along with external consultants such as valuation experts, research analysts, and key opinion leaders, specializing in the APAC SiP technology market. Amkor Technology, Inc.; ASE Technology Holding Co., Ltd.; ChipMOS TECHNOLOGIES INC.; JCET Group Co., Ltd.; Qualcomm Technologies, Inc.; Renesas Electronics Corporation; Samsung; Taiwan Semiconductor Manufacturing Company, Limited; and Texas Instruments Incorporated are among the players operating in the market.