FPGA Market Insights: Emerging Technologies and Sector-specific Growth Opportunities


Posted September 19, 2024 by Harshal

According to the latest publication from Meticulous Research®, the global FPGA market is projected to reach $20.3 billion by 2031, at a CAGR of 9.9% from 2024–2031.
 
Meticulous Research®, a leading global market research firm, has released a comprehensive report titled, “FPGA Market by Programming Technology (SRAM, Flash, Anti-fuse), Configuration (Low-end, Mid-range, High-end), Node Size, Sector (Telecommunication, Consumer Electronics, Data Center, Aerospace & Defense), and Geography - Global Forecast to 2031.” This detailed analysis delves into the growth trajectory and market dynamics of Field-Programmable Gate Arrays (FPGAs) up to 2031.

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Market Overview
The global FPGA market is on a robust growth trajectory, projected to reach $20.3 billion by 2031. This represents a Compound Annual Growth Rate (CAGR) of 9.9% from 2024 to 2031. The expansion of the FPGA market is driven by several key factors including the increased adoption of FPGAs in aerospace and defense sectors, the rise of artificial intelligence (AI) technologies, and the rapid expansion of data centers worldwide. Despite these growth drivers, concerns over data privacy and security pose challenges to market development.

Growth Drivers and Opportunities
One of the primary growth drivers for the FPGA market is the integration of FPGAs into cloud computing and infrastructure-as-a-service (IaaS). This integration enhances the performance of cloud-based applications and supports scalable computing needs. Additionally, the increasing adoption of FPGAs in consumer electronics is opening new avenues for market expansion. The rise of personalized and high-performance computing solutions presents significant growth opportunities for FPGA manufacturers and stakeholders.

However, the market faces hurdles such as the lack of standardized FPGA verification and validation techniques. This challenge can impede market growth by affecting the reliability and efficiency of FPGA implementations.

Market Segmentation
The global FPGA market is segmented based on programming technology, configuration, node size, sector, and geography. Each segment reveals unique insights into the evolving dynamics of the FPGA industry.

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1. Programming Technology
The FPGA market is categorized into three programming technologies: SRAM, flash, and anti-fuse. As of 2024, the SRAM segment is anticipated to hold the largest market share, surpassing 44%. This dominance is due to the superior flexibility, re-programmability, and high performance offered by SRAM-based FPGAs. These attributes make SRAM FPGAs highly desirable for various applications across aerospace, defense, and telecommunications sectors. Furthermore, SRAM-based FPGAs are less costly to manufacture compared to flash-based alternatives. For example, in September 2023, GOWIN Semiconductor Corp. (China) partnered with Andes Technology Corporation (Taiwan) to develop an SRAM FPGA System-on-Chip (SoC) with a hard-instantiated RISC-V core, showcasing the advancements in SRAM FPGA technology.

The SRAM segment is also projected to experience the highest CAGR during the forecast period, underscoring its growing relevance in the FPGA market.

2. Configuration
FPGAs are also segmented by configuration into low-end, mid-range, and high-end categories. The low-end FPGA segment is expected to dominate the market in 2024, capturing over 52% of the share. This preference is driven by the affordability and efficiency of low-end FPGAs, which are widely used in telecommunications, automotive, industrial, consumer electronics, and medical sectors. However, the high-end FPGA segment is predicted to witness the highest CAGR, driven by the increasing demand for high-performance computing, data center acceleration, and aerospace applications.

3. Node Size
The market is divided into node sizes of less than 28 nm, between 28-90 nm, and more than 90 nm. The segment of FPGAs with node sizes between 28-90 nm is expected to lead the market in 2024. This preference is due to the suitability of this node size for battery-powered IoT devices and portable electronics, offering a balance between performance and cost. This segment is also projected to grow at the highest CAGR of over 11% during the forecast period, driven by its widespread adoption and efficiency.

4. Sector
The FPGA market is segmented into various sectors including telecommunications, consumer electronics, data centers, aerospace & defense, industrial, automotive, healthcare, and others. The telecommunications sector is projected to hold the largest share, over 32%, in 2024. This is attributed to the extensive use of FPGAs for applications such as data packet switching and optical transport networks. The sector's growth is further fueled by the rising adoption of 5G technology and Infrastructure as a Service (IaaS). For instance, Advanced Micro Devices, Inc. (U.S.) introduced the Spartan-7 series of FPGAs in March 2024 to address the growing needs of the telecommunications industry.

Conversely, the aerospace & defense sector is expected to achieve the highest CAGR. This growth is driven by the increasing use of FPGAs in radar and signal processing, image recognition for drones, and high-speed communication systems in military aircraft. The demand for FPGAs capable of handling complex signal processing and high data rates is rising. For example, in September 2023, Mercury Systems, Inc. (U.S.) launched the SCFE6933, a space-qualified FPGA processing board integrating AMD’s Xilinx Versal AI core for high-performance computing in space applications.

5. Geography
Geographically, the FPGA market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Asia-Pacific is expected to hold the largest share, over 40%, in 2024, driven by rapid technological advancements and a growing focus on smart devices and industrial automation. The region's significant market presence is supported by government initiatives promoting technological innovation and domestic chip production, alongside the rollout of 5G technology. For example, Achronix Semiconductor Corporation (U.S.) signed an agreement with Nexcomm Asia (Singapore) in October 2021 to provide high-performance FPGAs and embedded FPGA (eFPGA) IP solutions across several Asian countries.

Asia-Pacific is also projected to exhibit the highest CAGR of over 11% during the forecast period, highlighting its pivotal role in the FPGA market’s future growth.

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Key Players
Prominent players in the global FPGA market include Qualcomm Technologies, Inc. (U.S.), Efinix, Inc. (U.S.), Advanced Micro Devices, Inc. (U.S.), QuickLogic Corporation (U.S.), Microchip Technology Inc. (U.S.), Intel Corporation (U.S.), GOWIN Semiconductor Corp. (China), Achronix Semiconductor Corporation (U.S.), S2C Limited (U.S.), FlexLogix (U.S.), NVIDIA Corporation (U.S.), Broadcom Inc. (U.S.), Lattice Semiconductor Corporation (U.S.), Shanghai Anlogic Infotech Co., Ltd. (China), and NanoXplore SAS (France). These companies are at the forefront of innovation and market development, driving advancements and shaping the future of FPGA technology.

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Issued By Harshal
Country United States
Categories Business , Electronics , Technology
Tags fpg amarket , fpg amarket size , fpg amarket share , fpg amarket growth
Last Updated September 19, 2024