The North America SiP technology market is expected to grow from US$ 4,553.9 million in 2019 to US$ 7,676.1 million by 2027; it is estimated to grow at a CAGR of 9.1% from 2020 to 2027.
SiP technology is acquiring huge potential available in the 5G computing and networking market as the technology is getting used for wide range of products such as 5G computing and networking modems and 5G NR Antenna-in-Package (AiP). The advent of the 5G in developed nations, such as the US, and rise in adoption of 5G srvices are boosting the internet services and demand for supporting devices. The 5G based devices market is enhancing with significant growth rate, which is ultimately increasing the demand for SiP technology. According to the Cisco, 5G speed will offer 13 times higher speed than average mobile connection and will help the internet service market. The companies, such as AT&T, are already offering the 5G services in the US across 21 cities and will soon provide services for whole nation. Such rising internet services through numerous developments such as 5G, 4G, VoLTE, and LTE are driving the market by offering advanced 5G integrated SiP electronics for better results. Rising demand for 5G devices is creating lucrative opportunities for the companies to innovate and develop new devices using SiP technology. Additionally, high demand for electronic miniaturization is one of the key factors expected to fuel the growth for the North America SiP technology market.
Based on packaging technology, the 2D IC segment led the North America SiP technology market in 2019. IC designs are continuously being improvised to enhance performance and reduce size. The 2D IC technology has strong roots in the market as it is traditionally being used in a wide range of electronics. It connects different discrete devices using a printed circuit board with their packages. The technology offers large and bulky circuit board, which hinders its performance. A modern electronic components demand small ICs while 2D ICs, which lower demand for this technology. The integration of 2D IC with different technologies enhances the device performance. However, increasing demand for microelectronics is major factor challenging the progress of the market for this segment, which can be resolved through extensive research and development targeted at the problem.
The ongoing COVID-19 outbreak has adversely affected North America. North America is one of the most important regions for the adoption and growth of new technologies owing to favorable government policies to boost innovation, the presence of a high-tech companies, and high purchasing power—especially in developed countries such as the US and Canada. The market in North America suffered huge loss in the first half of 2020 owing to the high number of COVID-19 positives cases, specifically in the US. Post lockdown, the market is witnessing increasing demand for the digital devices. North America is among the eminent regions in the adoption of advanced network connection devices owing to favorable infrastructure support for high speed internet services. The adoption of 5G network is driving the North America SiP technology market growth. The COVID-19 is hindering the manufacturing facilities as production capacities are lowering. Although, the demand for electronics remained still that helped the market to resume the growth. For instance, in December, 2020, Qualcomm Inc (a leading manufacturer of microprocessors) predicted that shipments of 5G smartphones will double in 2022 due to the increasing deployment of 5G network. During the post lockdown period, the increasing adoption of 5G network is lowering the COVID-19 impact on the market, while in lockdown it certainly hampered the market growth.
The overall North America 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 North America 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 North America 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.