Fabless IC Market Size & Share, by Type (Digital Fabless IC and Analog Fabless IC); Application; and End use - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2025-2037

Asia Pacific Market Forecast

Asia Pacific fabless IC market is projected to capture revenue share of around 31.2% by the end of 2037. The growth can be attributed to the expanding consumer electronics market, the high mobile device purchases, and the demand for high-performance semiconductor solutions. The market is also driven by technological innovations, an expanding middle-class population, and the adoption of electronics in various applications. Asia Pacific is becoming a pivotal player in shaping global fabless IC market trends, encouraging innovative ideas, and driving advancements in the semiconductor sector.

China is the world's largest and fastest-growing integrated chip (IC) market globally. The country accounts for nearly 50% of the global market share in ICs. According to OEC, in November 2024 China's integrated circuits exports accounted for up to USD 13.8 billion and imports accounted for up to USD 33.9 billion. Between November 2023 and November 2024, the exports of China's integrated circuits have increased by USD 1.37 billion (11.1%) from USD 12.4 billion to USD 13.8 billion, while imports increased by USD 1.21 billion (3.69%) from USD 32.7 billion to USD 33.9 billion. As semiconductors represent one of the most important industries, it is the core technology powering modern digital solutions and empowering innovation and productivity growth across every industry.

The integrated circuit market in India is also seeing a huge rise as India imported USD 15.4 billion in integrated circuits, becoming the 13th largest importer of integrated circuits.  The India fabless IC market has showcased proliferation of the 5G network, low internet cost, and increasing adoption of AI and machine learning (ML) technologies. For instance, according to a press release by PIB, internet connections in India jumped from 25.15 crore in March 2014 to 96.96 crore in June 2024, registering a growth of 285.53%. Additionally, broadband connections also rose by 1452% from   6.1 crores in March 2014 to 94.92 in August 2024. The integration of AI & ML technologies requires powerful and specialized integrated circuits thus increasing the demand for the fabless IC market. The demand for AI-enabled devices, such as smart speakers, autonomous vehicles, and robotics, is also driving the growth of the integrated circuits market in India.

The government in India is also making significant efforts to boost its position within the global supply chain. In December 2021, the government announced a USD 10 billion semiconductor incentive package to attract investments in chip manufacturing, assembly testing, packaging, and chip design. This investment is likely boost the development of fabless IC market in India.

North America Market Forecast

The fabless IC market in North America is expected to grow the fastest by 2037. This is ascribed to its robust technological infrastructure, a thriving semiconductor industry, a large consumer base, and innovative electronic devices. Over decades, North America has led the global fabless IC market, shaping industry trends, encouraging research and development, and driving technological advancements in the semiconductor sector.

The U.S. has a well-established system of fabless IC companies and semiconductor manufacturers, driving the region's significant market size. According to the SIA, the U.S. owns 46% of the revenue share for cumulative semiconductor sales. The U.S houses the top five semiconductor industry leaders such as Intel Corporation (USD 241.88 billion), NVIDIA Corporation (USD 152.88 billion), Texas Instruments Incorporated (USD 113.83 billion), and Broadcom Inc. (USD 108.13 billion). Moreover, supportive government initiatives encourage the further growth. For instance, in February 2024, the Biden-Harris Administration announced an investment of over USD 5 billion in semiconductor-related research, development, and workforce needs, including the National Semiconductor Technology Center (NSTC). Another major reason for rise in the U.S. is, its increasing number of internet users. According to the National Telecommunication and Information Administration (NTIA), 13 million more people are found to be using the internet in the U.S. in 2023 as compared to 2021.

The fabless IC market in Canada is experiencing steady growth, supported by various factors including adoption of modern technologies and demand for innovation and state of the art infrastructure. The global semiconductor industry is in the midst of technological, geopolitical and economic change, with firms and governments making multi-billion-dollar investments to generate and secure advantage. Canada’s semiconductor industry has about 500 firms. The vast majority (86%) are small firms employing between 1 and 99 people, while 13% are medium having 100 to 499 employees, and 1% are large having 500+ employees. Semiconductor forms in Canada are strong contributors to the global semiconductor value chains. According to a report by CSA Group, semiconductor firms are found throughout the country but are majorly located in Ontario (49%), Quebec (28%), British Columbia (11%) and Alberta (7%).