According to the new research report "3D IC and 2.5D IC Packaging Market by Application (Logic, Imaging & Optoelectronics, Memory, MEMS/Sensors, LED, Power), Packaging Technology (3D Wafer-Level Chip-Scale Packaging, 3D TSV, 2.5D), End-User Industry, and Region - Global Forecast to 2022", published by MarketsandMarkets, the market is expected to be worth USD 170.46 Billion by 2022, at a CAGR of 38.30% between 2016 and 2022.

The growth of this market is mainly driven by the increasing need for advanced architecture in electronics products, trend of miniaturization of electronic devices, and growing market for tablets, smartphones, and gaming devices.

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3D wafer-level chip-scale packaging (WLCSP) market held the largest size in 2015

3D WLCSP is one of the most compact package types with increased functionality and improved thermal performance in printed circuit boards compared to 3D TSV and 2.5D IC. 3D WLCSP has a simplified process design for the manufacturing of 3D ICs, which uses polymers that can sustain high temperatures, thus addressing the thermal issue which is the major challenge for this market. WLCSP has gained popularity in space-constrained mobile applications and other portable consumer devices as well as industrial products as it offers a cost-effective, small, lightweight, high-performance semiconductor solution.

Market for memory expected to grow at the highest rate during the forecast period

The use of 3D ICs is expected to provide a cost-effective solution and drive the wide-scale adoption of this technology in potential end products. The average number of stacked dies in DRAM modules is expected to grow with an increase in the demand for notebook computers. Moreover, the innovations in advanced data storage such as flash memory, hybrid memory cube, and so on create a demand for 3D IC and 2.5D IC packaging to obtain high-performing compact memory solutions.

APAC held the largest share of the 3D IC and 2.5D IC packaging market in 2015

The major factors driving the APAC market are the presence of major semiconductor foundries including TSMC (Taiwan) and UMC (Taiwan), proximity to major downstream electronics manufacturing operations, government-sponsored infrastructure support, tax incentives, and availability of skilled engineers and labor at a relatively low cost.

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The key companies in the 3D IC and 2.5D IC Packaging Market include Taiwan Semiconductor Manufacturing Company Ltd. (Taiwan), Samsung Electronics Co., Ltd. (South Korea), Toshiba Corp. (Japan), Advanced Semiconductor Engineering Group, (Taiwan), and Amkor Technology (U.S.)