FPGA Market Poised For Strong CAGR Of 8.6% From 2014 - 2020, Smartphones Drive Demand

A FPGA is an integrated circuit or semiconductor device used to implement logical function that an application-specific integrated circuit (ASIC) could perform, but the ability to update the functionality after manufacturing offers advantages such as re-programming in the field for rapid prototyping and debugging for many applications. FPGAs use programmable routing channels and pre-built logic blocks for implementing custom hardware functionality, depending upon the embedded system developer configuring these devices. FPGAs are programmed and configured using Hardware Description Language (HDL) such as VHDL and Verilog. Medical imaging equipment demands numerous processing requirements based on the definite data acquisition principles and algorithms used in image processing. High performance computing capabilities in imaging equipment is one of the major factors contributing to the growth of high-end processors and field-programmable gate arrays. The advantages of FPGA in digital signal processing (DSP) over other processors make it a feasible alternative for most imaging equipment such as computerized tomography (CT) and positron emission tomography (PET) machines. Though FPGAs have begun to replace DSP in most applications, there exists a trend to use them as co-processors. General diagnostic imaging devices include X-rays, mammography equipment, ultrasounds, CT scanners, MRIs, and nuclear medicine imaging.

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The automobile market continues to witness a proliferation of electronic content due to governmental guidelines on pollution, security and safety regulations, and the ongoing oil crisis. Furthermore, increasing luxury features in automobiles require efficient solutions, thereby boosting demand in the FPGA market. Moreover, rising fuel prices in the global market have resulted in demand for electric and hybrid vehicles, which in turn is expected to drive FPGA content in automobiles. In Europe, regulations such as the Antilock Braking System (ABS), Electronic Stability Program (ESP), and electronically controlled independent suspension are expected to generate substantial revenues in the near future. North America dominates the automobile market; however, Asia Pacific has significant potential to become the key contributor to FPGA revenues. FPGA is used in automobiles for various applications including driver assistance, rear-view camera, forward camera, surround-view camera, infotainment, and electric vehicles.

High performance computing in the financial sector is continuously challenged by rising demand for capability to process larger volumes of data with faster results. FPGA can significantly increase the throughput of systems and decrease data center load. As a result, FPGAs are extensively adopted in mainstream embedded computing to build complex mission-critical systems. FPGA’s underlying programmable architecture is being used for numerous purposes in the financial sector including real-time trading, performance arbitrage, risk analysis, and ex-post factor data analysis. Companies such as Fixnetix have launched ix-eCute, the pre-trade risk FPGA microchip for ultra-low latency implementation for Canada. In addition, companies such as Enyx are focusing on software and IP cores for optimizing FPGAs for the trading floor. Accelize is serving the finance industry with its ultra-low latency FPGA network platforms. Thus, the FPGA market is expected to witness substantial growth in the financial domain over the forecast period.

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Telecom is the largest application segment for FPGA. Other applications include automobile, consumer electronics, industrial, data processing, military and aerospace, and medical industries. Unlimited demand for bandwidth in wireless networks is driving this market. In addition, increase in demand for smartphones and tablets are boosting the market. FPGA is widely used in imaging equipment and the automobile industry to enable high performance computing abilities. This is contributing to growth of the market. Accumulating 3D ICs with FPGA, processors, SerDes, and memory controller, and other part offering DDR memory is expected to open up opportunity to the market growth during the forecast period. Also, there is major demand for FPGA for low power, cost-sensitive, and space-constrained applications. With increase in number of industries operating in industrial, automotive, and telecom sector, Asia Pacific dominates FPGA market, followed by the U.S. and Europe.

Major market participants profiled in this report include Xilinx Inc., Altera Corporation, Lattice Semiconductor Corporation, Microsemi Corporation, among others.

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