Press release
FPGA Market Set to Grow at the Fastest Rate- Time to Grow your Revenue
The FPGA market is projected to grow from USD 8.0 billion in 2022 and is projected to reach USD 15.5 billion by 2027; it is expected to grow at a CAGR of 14.2% from 2022 to 2027.The growth of this market is driven by factors such as surge in demand for machine vision systems in automated industries, rising use of FPGAs in 5G applications, and increasing adoption of FPGAs across data center & computing applications.
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The technological advancements across eFPGAs has created new revenue streams for the players in the FPGA ecosystem. eFPGAs have several advantages over FPGA packages, including better performance, low latency, less power consumption, reduced costs, greater system flexibility, and high system reliability. Unlike FPGAs, eFPGAs do not require bulky and heavy packages. Since their introduction, eFPGAs have been updated several times. The industry has already witnessed numerous generations of products. Each new generation has increased the flexibility and use of eFPGAs for new applications, such as preprocessing images, videos, or voice inputs for machine learning. The manufacturing of eFPGAs has become more cost-effective than traditional FPGA packages. The increasing adoption of eFPGAs is expected to drive the market growth over the forecast period.
The market for ≤ 16 nm node size segment is expected to grow at high rate during the forecast period. FPGAs with ≤ 16 nm node sizes have more advanced features than those with other node sizes. As such, they are used in several high-level applications. These FPGAs consist of next-generation hard processor systems, require low capital and operating expenses, and offer superior performance with low power consumption. Significant research, development, and product launches by market players will contribute to the ≤ 16 nm segment growth in the coming years. In April 2021, Achronix Semiconductor Corporation (US) launched Speedster7t series of FPGA, which is based on TSMC's 7nm process technology. The new FPGA targets data-intensive applications such as computation storage, 5G, AI, and machine learning.
The data center & computing segment will grow at a faster rate in FPGA market during the forecast period. Data storage technology is growing at a fast pace. Computing now allows the consolidation of existing IT functions with newly added capabilities. For instance, several large data centers are now offering traditional IT and new data analytics services. These large-scale data centers require highly efficient storage systems and servers in terms of performance and bandwidth. FPGAs are used to accelerate the performance of large-scale data centers. They enable high-speed data processing by providing high bandwidth and low-latency connections to storage systems and networks. This in turn, will fuel the demand for FPGAs across data center & computing vertical over the forecast timeframe.
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In terms of geographic coverage, the FPGA market has been segmented into four regions, namely, North America, Europe, Asia Pacific and Rest of the World (RoW). The market in Asia Pacific is expected to record the highest growth rate during the forecast period. The market growth is credited to the increasing adoption of FPGAs by telecom operators for 5G networking applications. FPGAs are energy efficient and offer re-programmability and accelerated network performance features in 5G infrastructure. The presence of state-owned carriers in China such as China Mobile, China Unicom, and China Telecom has contributed significantly to the growth of the FPGA market in the Asia Pacific. This is expected to fuel the FPGA market growth in coming years.
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