Asia Pacific Field Programmable Gate Array (FPGA) Market Growth was estimated to be around USD 2.5 billion in 2019 and is expected to grow at a CAGR of over 13%.
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Asia Pacific FPGA market growth is attributed to increasing penetration of hyperscale and cloud data centers in the region. Rising demand for data center applications, such as network switches, data storage, and network acceleration, is driving the adoption of FPGAs. FPGA enables high-speed data processing and low latency in network connections, which is suitable for datacentric systems. Companies are integrating FPGA chipsets into new data center infrastructure to achieve a better economy of scale and cost benefits. For instance, in September 2018, Xilinx at the Xilinx Developer Forum (XDF), Beijing presented its FPGA technologies for Alibaba Cloud, Inspur, and Huawei datacenters in China.
The SRAM architecture segment held a market share of 57% in 2019 and is projected to grow at a CAGR of 14% from 2020 to 2026. The growth is attributed to its exceptional features such as high-performance, re-programmability, high-integration, and better flexibility, which is suitable for aerospace applications. SRAM-based FPGA offers various advantages as it is manufactured using CMOS fabrication process, which offers greater logic density and improved power efficiency compared to other FPGA architectures.
The 28nm - 90nm process technology segment held a major share of over 55% in 2019 and is projected to grow at a CAGR of 13% by 2026. The growth is attributed to the upcoming 5G technology in the Asia Pacific region, which will propel the adoption of 28 - 90nm FPGA devices in the telecommunication sector.
The automotive application segment will showcase a significant growth opportunity in the market, growing at a CAGR of 12% during the forecast timeline. Several automotive OEMs and manufacturers are focused on deploying technically advanced ADAS systems, such as Electronic Stability Control (ESC) and Adaptive Cruise Control (ACC), that are based on FPGA architecture.
China accounted for the majority share in the Asia Pacific FPGA market in 2019. The growth is attributed to increasing investments by the local government and Chinese companies for the development of Artificial Intelligence (AI) technology. AI chip developers in China, such as Horizon Robotics, Bitmain, and Cambricon, are extensively focusing on the development of FPGA-based AI-chipsets and accelerators. In addition, the State Council of China introduced a ‘New Generation Artificial Intelligence Development Plan’ for the development of the domestic AI industry by 2030, further propelling the market growth.
Players in the market are investing heavily in new capabilities and implementing several merger & acquisition strategies to gain a competitive edge in the market. For instance, in March 2019, Taiwan Semiconductor Manufacturing Corporation (TSMC) collaborated with ARM, Xilinx, and Cadence Designs Systems to offer its 7nm process technology platform for FPGA and SoC development. Some of the players operating in the market are Gowin Semiconductor Corp., Taiwan Semiconductor Manufacturing Company (TSMC), AGM Micro, Shenzhen Pango Microsystems, and Xian Intelligence Silicon Tech, among others.