The Europe SiP technology market is expected to grow from US$ 2,187.5 million in 2019 to US$ 4,164.9 million by 2027; it is estimated to grow at a CAGR of 10.8% from 2020 to 2027.
The growing trend of the small form factor-based handheld electronic devices is one of the major factors accelerating the growth of the Europe SiP technology market. The technological advancements in electronics forming such as miniaturization influence various markets such as military, aerospace, medical, media, retail and consumer electronics. The devices with small form factor-based packages embed more functionality and are becoming alternative for traditional packaging systems. Personalized healthcare gadgets, thin sized smartphones, compact PCs, and other devices are occupied with SiP technology-based components such as processor, sensors, RF modules, and others. Continuous developments in advanced packaging technology such as 3D IC, 2.5D IC, and others are also driving the market by resolving the technical challenges. The innovation in solutions enhances device performance as smaller space increases connectivity and control. Market players are also taking effort to optimize the SiP technology for better solution formation. 5G networks are developing rapidly across Europe, which is among the other factors expected to fuel the demand for SiP technology in Europe during the forecast period.
Based on packaging type, the flip-chip/wire-bond SiP segment led the Europe SiP technology market in 2019. Flip chip packaging type delivers superior electrical and thermal performance with higher I/O capability than other methods. Developments in the solutions based on the flip-chip packaging type are fueling their adoption in consumer electronics products, automotive engine controllers, and portable communications devices. The reliability of flip-chip packaging type with the improved functionality at reduced cost is supporting the market growth for this segment. New inventions are being carried out to overcome the challenges and offer flexibility, reliability, and cost-saving benefits to customers. Wire-bond packaging made continuous growth, especially in copper wire bonding, and it can be replaced at some silicon nodes for improved reliability and low cost. The wire bond packaging is utilized in automotive products, smartphones, and so on owing to cost benefits and sufficient space availability.
Europe is adversely affected by the ongoing COVID-19 outbreak. Spain, Italy, Germany, the UK, and France are a few of the worst affected countries in the region. Businesses in Europe are facing severe economic difficulties as they are either suspending their operations or reducing their activities in a substantial manner. The growth of the SiP technology market in Europe was hindered in the first half of 2020 as COVID-19 infected cases were rising with the significant rate. Countries such as Russia, France, Spain, the UK, and others had the major count of COVID-19 cases on daily basis owing to which lockdown was imposed across various countries, which hampered the SiP technology market growth. The semiconductor industry in Europe is resuming at slower growth rate than other regions. The demand from the industrial and automotive electronics has witnessed stronger hit than consumer electronics and communication electronics due to the COVID-19 pandemic. Post lockdown, the market is growing with the support from advanced electronics devices. For instance, Maggy (a Belgium-based company) is using Silicon Labs Bluetooth SiP module to develop new compact wearable for distancing application.
The overall Europe 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 Europe 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 Europe SiP technology market. Amkor Technology, Inc.; ASE Technology Holding Co., Ltd.; GS Nanotech; 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.