System in Package (SiP) Technology Market Overview, Growth, Trends, Analysis, Research Report (2021-2031)

System in Package (SiP) Technology Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Packaging Technology (2D IC, 2.5D IC, 3D IC); Packaging Type (Flip-Chip, Wire-Bond, Fan Out Wafer Level Packaging); Interconnection Technique (Small Outline, Flat Packages, Pin Grid Arrays, Surface Mount, Others); End-use Industry (Automotive, Aerospace and Defense, Consumer Electronics, Telecommunication, Others) and Geography

  • Report Code : TIPRE00005443
  • Category : Electronics and Semiconductor
  • No. of Pages : 150
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The System in Package (SiP) Technology Market size is projected to reach US$ 35.20 billion by 2031 from US$ 15.36 billion in 2023. The market is expected to register a CAGR of 10.9% in 2023–2031. The growing demand for miniaturization of electronics is likely to remain a key System in Package (SiP) technology market trends.

System in Package (SiP) Technology Market Analysis

It is projected that the introduction of 5G network-connected devices, the increased demand for small electronics devices with Internet connectivity, and the proliferation of Internet of Things (IoT) devices will propel the growth of the global system-in-package (SiP) technology business. Furthermore, the industry is developing due to the increasing use of smartphones and smart wearables. Higher levels of integration, however, might cause thermal problems, which is a significant market constraint. Conversely, strong demand from the Asia-Pacific region is anticipated to support market expansion throughout the projected timeframe.

System in Package (SiP) Technology Market Overview

The packaging technique known as "system in package" (SiP) integrates a number of passive and electrical subcomponents on one substrate. One of system in package (SiP) technology's main advantages is that it allows IC packages with many dies to be combined with active systems or subsystems inside the IC package. The market expansion for system in package (SiP) technology is expected to be bolstered by the growing adoption of SiP products in developing nations, particularly in the automotive segment. The market is increasing more quickly due to factors like the growing need for circuit miniaturization in microelectronic devices. Additionally, the newest trend in packaging design is the system.

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System in Package (SiP) Technology Market: Strategic Insights

System in Package (SiP) Technology Market

  • CAGR (2023 - 2031)
    10.9%
  • Market Size 2023
    US$ 15.36 billion
  • Market Size 2031
    US$ 35.20 billion

Market Dynamics

GROWTH DRIVERS
  • The growing automotive industry
FUTURE TRENDS
  • The growing demand for the miniaturization of electronics
OPPORTUNITIES
  • The potential use of RF components in developing advanced 5g infrastructure

Key Players

  • ASE Group
  • Amkor Technology, Inc
  • ChipMOS TECHNOLOGIES INC.
  • Fujitsu Ltd.
  • GS Nanotech
  • JCET Group Co., Ltd.
  • Qualcomm Technologies, Inc.
  • Renesas Electronics Corporation
  • Samsung Electronics Co., Ltd.
  • Texas Instruments Incorporated

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

Packaging Technology
  • 2D IC
  • 2.5D IC
  • 3D IC
Packaging Type
  • Flip-Chip/Wire-Bond SiP
  • Fan-Out SiP
  • Embedded SiP
Interconnection technique
  • Small Outline
  • Flat Packages
  • Pin Grid Arrays
  • Surface Mount
  • Others
End-User Industry
  • Automotive
  • Aerospace and Defense
  • Consumer Electronics
  • Telecommunication
  • Others
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

System in Package (SiP) Technology Market Drivers and Opportunities

The Growing Automotive Industry

The automotive sector, especially electric vehicles will experience growth in the forecast period due to the growing sensitivity of fossil fuel and increasing government measures towards a cleaner environment. For instance, in the automotive sector, giants like General Motors plan to release autonomous (driverless car) cars in 2021, while AUDI collaborated with Nvidia to develop a capability for non-human supervised car models. The prototype of this highly automated car is based on AUDI’s Q7 car model. SIP technology is used in smart and electric vehicles in its electric components such as power modules (ADI µModules), sensors (MEMS), transmission control units, vehicle central infotainment units, single-chip modules, etc. Thus, the growing automotive industry is propelling the System in Package (SiP) technology market growth.

Potential Use Of RF Components In Developing Advanced 5G Infrastructure

Over the next five years, there will be significant congestion on wireless networks due to the availability of equipment that supports high bandwidth. This would accelerate the transition to 5G from the current 3G and 4G LTE technology. It is anticipated that the 5G technology will enable aggregate data rates that are substantially quicker than the current 4G and 3G data rates, respectively.

A number of significant nations, including the US, Japan, South Korea, the UK, Germany, and China, are anticipated to implement 5G technology by 2021. It is anticipated that this would result in a large rise in the number of mobile subscribers, necessitating the development of infrastructure capable of processing user demands for data. Consequently, there would be a rise in SiP-based RF components needed in order to deliver more data. Thus, the potential use of RF components in developing advanced 5G infrastructure is anticipated to present new opportunities for the System in Package (SiP) technology market players during the forecast period.

System in Package (SiP) Technology Market Report Segmentation Analysis

Key segments that contributed to the derivation of the System in Package (SiP) technology market analysis are packaging technology, packaging type, interconnection technique, and end-use industry.

  • Based on packaging technology, the System in Package (SiP) technology market is segmented into 2D IC, 2.5D IC, and 3D IC.
  • By packaging type, the market is segmented into flip-chip, wire-bond, and fan-out wafer-level packaging.
  • By interconnection technique, the market is segmented into small outlines, flat packages, pin grid arrays, surface mount, and others.
  • Based on the end-use industry, the system-in-package (SiP) technology market is bifurcated into automotive, aerospace and defense, consumer electronics, telecommunication, and others.

System in Package (SiP) Technology Market Share Analysis by Geography

The geographic scope of the System in Package (SiP) technology market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America. In terms of revenue, APAC accounted for the largest System in Package (SiP) technology market share. This is attributed to the surge in demand from emerging economic countries such as China, India, and South Korea. 

System in Package (SiP) Technology Market Report Scope

Report Attribute Details
Market size in 2023 US$ 15.36 billion
Market Size by 2031 US$ 35.20 billion
Global CAGR (2023 - 2031) 10.9%
Historical Data 2021-2022
Forecast period 2024-2031
Segments Covered By Packaging Technology
  • 2D IC
  • 2.5D IC
  • 3D IC
By Packaging Type
  • Flip-Chip/Wire-Bond SiP
  • Fan-Out SiP
  • Embedded SiP
By Interconnection technique
  • Small Outline
  • Flat Packages
  • Pin Grid Arrays
  • Surface Mount
  • Others
By End-User Industry
  • Automotive
  • Aerospace and Defense
  • Consumer Electronics
  • Telecommunication
  • Others
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • ASE Group
  • Amkor Technology, Inc
  • ChipMOS TECHNOLOGIES INC.
  • Fujitsu Ltd.
  • GS Nanotech
  • JCET Group Co., Ltd.
  • Qualcomm Technologies, Inc.
  • Renesas Electronics Corporation
  • Samsung Electronics Co., Ltd.
  • Texas Instruments Incorporated
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

    System in Package (SiP) Technology Market News and Recent Developments

    The system-in-package (SiP) technology market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for speech and language disorders and strategies:

    • In March 2023, the OSD62x series of system-in-a-chip (Sip) products, which Octavo Systems introduced, aids in enhancing the performance of edge and small form factor embedded processing for use in next-generation applications. The processors Texas Instruments (Tl) AM623 and AM625 serve as the foundation for the OSD62x family.

    (Source: Octavo Systems, Press Release)

    System in Package (SiP) Technology Market Report Coverage and Deliverables

    The “System in Package (SiP) Technology Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

    • Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
    • Market dynamics such as drivers, restraints, and key opportunities
    • Key future trends
    • Detailed PEST/Porter’s Five Forces and SWOT analysis
    • Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
    • Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
    • Detailed company profiles
    Report Coverage
    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered
    Segment Covered

    Type, Application, End User

    Regional Scope
    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope
    Country Scope

    Australia, Canada, China, France, Germany, India, Italy, Japan, MEA, Mexico, Russian Federation, SAM, South Korea, United Kingdom, United States

    Frequently Asked Questions


    What is the estimated market size for the global System in Package (SiP) technology market in 2023?

    The global System in Package (SiP) technology market was estimated to be US$ 15.36 billion in 2023 and is expected to grow at a CAGR of 10.9 % during the forecast period 2023 - 2031.

    What are the driving factors impacting the global System in Package (SiP) technology market?

    The growing automotive industry and the potential use of RF components in developing advanced 5g infrastructure are the major factors that propel the global System in Package (SiP) technology market.

    What are the future trends of the global System in Package (SiP) technology market?

    The growing demand for the miniaturization of electronics is anticipated to play a significant role in the global System in Package (SiP) technology market in the coming years.

    Which are the key players holding the major market share of the global System in Package (SiP) technology market?

    The key players holding majority shares in the global System in Package (SiP) technology market are ASE Group, Amkor Technology, Inc., ChipMOS TECHNOLOGIES INC., Fujitsu Ltd., and GS Nanotech.

    What will be the market size of the global System in Package (SiP) technology market by 2031?

    The global System in Package (SiP) technology market is expected to reach US$ 35.20 billion by 2031.

    The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

    1. Data Collection and Secondary Research:

    As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

    Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

    1. Primary Research:

    The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

    For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

    A typical research interview fulfils the following functions:

    • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
    • Validates and strengthens in-house secondary research findings
    • Develops the analysis team’s expertise and market understanding

    Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

    • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
    • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

    Below is the breakup of our primary respondents by company, designation, and region:

    Research Methodology

    Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

    1. Data Analysis:

    Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

    • 3.1 Macro-Economic Factor Analysis:

    We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

    • 3.2 Country Level Data:

    Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

    • 3.3 Company Profile:

    The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

    • 3.4 Developing Base Number:

    Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

    1. Data Triangulation and Final Review:

    The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

    We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

    We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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