The global advanced packaging market is anticipated to exhibit considerable growth at a CAGR of 7.2% in the forecast period between 2023 and 2033. The market is set to be valued at US$ 30.5 billion in 2023. A valuation of US$ 61.3 billion is expected for the global market by 2033.
Due to high demand from a variety of industries within the semiconductor sector, integrated circuit packaging has undergone continual change in terms of product attributes, integration, and energy efficiency.
Flip-chip and wafer-level packaging technologies have seen steady expansion over the years. This growth is attributed to their widespread use, particularly in high-end smartphones and tablets that must adhere to strict space and power management specifications.
Main purpose of the redistribution method was to enable fan-in area array packaging when just a small number of chips were required for the array. Since then, various innovative packaging technologies such as through-silicon via (TSV)-based interposers, wafer-level packaging, chip stacks, and fan-out packaging have all benefited greatly from this methodology.
Fan-out wafer-level packaging (FOWLP), which aims to fulfill the escalating demand for consumer electronics devices, has become a promising technology. Specific features of this type of packaging such as substrate-less packaging and low thermal resistance have made it immensely popular worldwide.
Importantly, it enables incredible performance thanks to its thin-film metallization-based direct integrated circuit connection and short interconnects. It does not make use of standard wire bonding or flip-chip bumps. It also has mild parasitic effects.
Fan-out wafer-level packaging is one of the most prominent packaging innovations in the microelectronics sector. Large substrate formats are being addressed with multiple technological developments for heterogeneous integration with the aid of this packaging.
It incorporates multiple die packaging, package-on-package approaches, passive component integration in packages & redistribution layers. As a result, it is ideal for squeezing in a super capacitor for energy storage along with a piezo-based harvester and power control unit to create a highly miniaturized energy harvester system.
| Attributes | Key Insights |
|---|---|
| Advanced Packaging Market Estimated Size (2023E) | US$ 30.5 billion |
| Projected Market Valuation (2033F) | US$ 61.3 billion |
| Value-based CAGR (2023 to 2033) | 7.2% |
| CAGR of the USA Market (2023 to 2033) | 6.6% |
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As per Future Market Insights, a renowned market research firm, from 2018 to 2022, the advanced packaging market surged at around 8.1% CAGR. The market is likely to be valued at US$ 61.3 billion by 2033 and create an absolute dollar opportunity of US$ 30.8 billion.
In order to reduce associated costs and improve the overall throughput and performance of integrated circuits, advanced packaging technology has developed. Demand for sophisticated packaging has elevated significantly in recent years due to rising deployment of semiconductor integrated circuits in automobiles.
An improvement in the functional density of large system-on-chip solutions is tied to improvements in packaging technologies. The chip industry has hence created a new set of solutions called advanced packaging in response to the emphasis on heterogeneous integrations and wafer-level packages.
The market for advanced packaging is being significantly impacted by growth in silicon size from 100 mm to 300 mm. Extended diameter wafers have lowered manufacturing costs by 20% to 25%, which is anticipated to spur investment in innovative packaging technologies.
| Attributes | Key Insights |
|---|---|
| Historical CAGR | 8.1% |
| Historical Market Value (2022) | US$ 28.3 billion |
| Forecast CAGR | 7.2% |
As compared to traditional semiconductor packaging, advanced packaging is gaining immense popularity across the globe. Miniaturization of electronics devices is helping advanced packaging sales to escalate worldwide.
High adoption of micro-electromechanical systems (MEMS) is further set to push sales of embedded die packaging solutions. Although the technology is not new, it has been specialized for niche uses owing to its high cost and limited yield. But, it has enormous potential for growth in the forecast period. Investments in the technology may increase as a result of developments in Bluetooth and radio frequency modules, as well as emergence of WiFi-6.
Principal Consultant
Key Players in the USA to Expand their Advanced Packaging Solutions Manufacturing Capacities
The USA advanced packaging market is expected to reach a valuation of US$ 9.9 billion by 2033. It is anticipated to exhibit 6.6% CAGR from 2023 to 2033. Key players in the USA are setting up fabrication facilities in the country for research and development activities.
They are striving to come up with advanced packaging technologies such as flip chip scale package, flip chip ball grid array, and fan-out wafer-level packaging. For instance, in May 2021, Intel Corporation announced that it invested US$ 3.5 billion in New Mexico in order to work on advanced packaging technologies and advanced packaging.
Intel also developed Foveros, which is its breakthrough 3D technology. This technology will provide the company with increased computing performance. Such advancements in the USA are projected to create new growth opportunities for advanced packaging manufacturers.
Demand for Advanced Box and Packaging Solutions to Boom in the United Kingdom with Presence of Key Companies
The United Kingdom advanced packaging market is expected to be valued at US$ 1.7 billion by 2033. Between 2023 and 2033, the country is set to showcase a CAGR of 5.6%, says Future Market Insights. It is likely to create an incremental opportunity of about US$ 712.8 million throughout the assessment period.
Key companies based in the United Kingdom are estimated to develop new technologies to attract a large client base. In June 2019, for instance, WHP Engineering was given the task of building cleanrooms in Oxfordshire (United Kingdom) by Satellite Applications Catapult. WHP will work on the contract to expand a top-notch satellite manufacturing facility that aids the country’s space sector.
WHP's solution entails the delivery of an ISO Class 7 compliant cleanroom. It was developed by using 3D Building Information Modeling (BIM) modeling techniques to help finalize DISC’s need for a wide range of facilities. It will be utilized to finalize process & key utilities systems, machinery components, and architecture.
Semiconductor Manufacturers in China to Look for Advanced Flexible Packaging
China advanced packaging industry is expected to be worth US$ 15.5 billion by 2033. It is estimated to witness a significant CAGR of around 8.7% between 2023 and 2033. As per Future Market Insights, the country exhibited a CAGR of 10.3% from 2018 to 2022.
Given the rising demand from data centers and artificial intelligence, manufacturers in China are concentrating on expanding their clientele across North America. Presence of various semiconductor manufacturers in the country is another crucial factor that would augment advanced packaging demand. To meet the high demand from fabless vendors, the country’s pure-play manufacturers are expanding their production capacity.
High Demand for Fast-charging Integrated Circuits in South Korea to Push Sales of Electronic Chips
In 2033, South Korea advanced packaging market is expected to be worth US$ 3.7 billion. The country is set to create an incremental opportunity of around US$ 1.9 billion in the next ten years, finds Future Market Insights.
South Korea-based companies are expected to draw a large client base by developing new technologies. In February 2020, for instance, HANA Micron, a semiconductor company headquartered in South Korea, used the wafer-level packaging process to expand the thickness of wiring by four times in a chip. The company aims to use this process to make fast-charging integrated circuits.
Advanced Packaging Technologies to Gain Impetus amid High Demand for Consumer Electronics
Based on end user, the consumer electronics segment is anticipated to dominate the global advanced packaging market in the next ten years. As per Future Market Insights, the segment is anticipated to exhibit a CAGR of around 7.0% from 2023 to 2033. It had witnessed a considerable CAGR of 7.7% during the historical period between 2018 and 2022.
Surging trend for advanced connected homes is projected to boost sales of consumer electronics. Various appliances equipped with new features such as Wi-Fi connectivity, Bluetooth, and voice assistance are set to be highly popular among millennials. With rising level of income worldwide, need to equip one’s home with latest technology-based products is surging. These factors would positively influence sales of advanced packaging for consumer electronics.
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Ten to fifteen big firms presently controlling the global advanced packaging market include Intel Corporation, ASE Technology Holding Co. Ltd., Jiangsu Changjiang Electronics Technology Co., Ltd., Amkor Technology Inc., Nepes Corporation, ChipMOS Technologies, Inc., Powertech Technology Inc., China Wafer Level CSP Co., Ltd., King Yuan Electronics Corp., HANA Micron Inc., and FlipChip International LLC among others.
The market is predominantly driven by half way point revenue due to the requirement for cutting-edge technology and quick-responding devices. Given the increasing need for unique solutions for numerous applications, these companies have a persistent competitive edge in this market. The industry is expected to benefit from ongoing advancements in tablets, smartphones, wireless communications, and other technologies.
Few of the recent developments in the advanced packaging market are
| Attribute | Details |
|---|---|
| Estimated Market Size (2023) | US$ 30.5 billion |
| Projected Market Valuation (2033) | US$ 61.3 billion |
| Value-based CAGR (2023 to 2033) | 7.2% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | Value (US$ billion) |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; and the Middle East & Africa |
| Key Countries Covered | USA, Canada, Brazil, Mexico, Germany, United Kingdom, France, Italy, Spain, Nordic, Russia, Poland, China, India, Thailand, Indonesia, Australia and New Zealand, Japan, Gulf Cooperation Council countries, North Africa, South Africa, others. |
| Key Segments Covered | Type, End User, Region |
| Key Companies Profiled | Amkor Technology Inc.; ASE Technology Holding Co. Ltd.; China Wafer Level CSP Co. Ltd.; ChipMOS Technologies Inc.; FlipChip International LLC; HANA Micron Inc.; Jiangsu Changjiang Electronics Technology Co. Ltd.; King Yuan Electronics Corp.; Nepes Corporation; Powertech Technology Inc. |
| Report Coverage | Market Forecast, Company Share Analysis, Competitive Landscape, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The advanced packaging market is worth US$ 30.5 billion in 2023.
The advanced packaging market is expected to thrive at a 7.2% CAGR through 2033.
The consumer electronics segment is leading the market with a 7.0% CAGR through 2033.
South Korea’s advanced packaging market size is poised to reach US$ 3.7 billion by 2033.
Japan’s advanced packaging market may rise at a 10.3% CAGR through 2033.
1. Executive Summary | Advanced Packaging Market
1.1. Global Market Outlook
1.2. Demand-side Trends
1.3. Supply-side Trends
1.4. Technology Roadmap Analysis
1.5. Analysis and Recommendations
2. Market Overview
2.1. Market Coverage / Taxonomy
2.2. Market Definition / Scope / Limitations
3. Market Background
3.1. Market Dynamics
3.1.1. Drivers
3.1.2. Restraints
3.1.3. Opportunity
3.1.4. Trends
3.2. Scenario Forecast
3.2.1. Demand in Optimistic Scenario
3.2.2. Demand in Likely Scenario
3.2.3. Demand in Conservative Scenario
3.3. Opportunity Map Analysis
3.4. Investment Feasibility Matrix
3.5. PESTLE and Porter’s Analysis
3.6. Regulatory Landscape
3.6.1. By Key Regions
3.6.2. By Key Countries
3.7. Regional Parent Market Outlook
4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
4.1. Historical Market Size Value (US$ billion) Analysis, 2018 to 2022
4.2. Current and Future Market Size Value (US$ billion) Projections, 2023 to 2033
4.2.1. Y-o-Y Growth Trend Analysis
4.2.2. Absolute $ Opportunity Analysis
5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Type
5.1. Introduction / Key Findings
5.2. Historical Market Size Value (US$ billion) Analysis By Type, 2018 to 2022
5.3. Current and Future Market Size Value (US$ billion) Analysis and Forecast By Type, 2023 to 2033
5.3.1. Flip Chip Scale Package
5.3.2. Flip-Chip Ball Grid Array
5.3.3. Wafer Level Chip Scale Package
5.3.4. 5D/3D
5.3.5. Fan Out Wafer-level Packaging
5.3.6. Others
5.4. Y-o-Y Growth Trend Analysis By Type, 2018 to 2022
5.5. Absolute $ Opportunity Analysis By Type, 2023 to 2033
6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By End User
6.1. Introduction / Key Findings
6.2. Historical Market Size Value (US$ billion) Analysis By End User, 2018 to 2022
6.3. Current and Future Market Size Value (US$ billion) Analysis and Forecast By End User, 2023 to 2033
6.3.1. Consumer Electronics
6.3.2. Automotive
6.3.3. Industrial
6.3.4. Healthcare
6.3.5. Aerospace & Defense
6.3.6. Others
6.4. Y-o-Y Growth Trend Analysis By End User, 2018 to 2022
6.5. Absolute $ Opportunity Analysis By End User, 2023 to 2033
7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
7.1. Introduction
7.2. Historical Market Size Value (US$ billion) Analysis By Region, 2018 to 2022
7.3. Current Market Size Value (US$ billion) Analysis and Forecast By Region, 2023 to 2033
7.3.1. North America
7.3.2. Latin America
7.3.3. Europe
7.3.4. Asia Pacific
7.3.5. Middle East and Africa
7.4. Market Attractiveness Analysis By Region
8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
8.1. Historical Market Size Value (US$ billion) Trend Analysis By Market Taxonomy, 2018 to 2022
8.2. Market Size Value (US$ billion) Forecast By Market Taxonomy, 2023 to 2033
8.2.1. By Country
8.2.1.1. USA
8.2.1.2. Canada
8.2.2. By Type
8.2.3. By End User
8.3. Market Attractiveness Analysis
8.3.1. By Country
8.3.2. By Type
8.3.3. By End User
8.4. Key Takeaways
9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
9.1. Historical Market Size Value (US$ billion) Trend Analysis By Market Taxonomy, 2018 to 2022
9.2. Market Size Value (US$ billion) Forecast By Market Taxonomy, 2023 to 2033
9.2.1. By Country
9.2.1.1. Brazil
9.2.1.2. Mexico
9.2.1.3. Rest of Latin America
9.2.2. By Type
9.2.3. By End User
9.3. Market Attractiveness Analysis
9.3.1. By Country
9.3.2. By Type
9.3.3. By End User
9.4. Key Takeaways
10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
10.1. Historical Market Size Value (US$ billion) Trend Analysis By Market Taxonomy, 2018 to 2022
10.2. Market Size Value (US$ billion) Forecast By Market Taxonomy, 2023 to 2033
10.2.1. By Country
10.2.1.1. Germany
10.2.1.2. United Kingdom
10.2.1.3. France
10.2.1.4. Spain
10.2.1.5. Italy
10.2.1.6. Rest of Europe
10.2.2. By Type
10.2.3. By End User
10.3. Market Attractiveness Analysis
10.3.1. By Country
10.3.2. By Type
10.3.3. By End User
10.4. Key Takeaways
11. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
11.1. Historical Market Size Value (US$ billion) Trend Analysis By Market Taxonomy, 2018 to 2022
11.2. Market Size Value (US$ billion) Forecast By Market Taxonomy, 2023 to 2033
11.2.1. By Country
11.2.1.1. China
11.2.1.2. Japan
11.2.1.3. South Korea
11.2.1.4. Singapore
11.2.1.5. Thailand
11.2.1.6. Indonesia
11.2.1.7. Australia
11.2.1.8. New Zealand
11.2.1.9. Rest of Asia Pacific
11.2.2. By Type
11.2.3. By End User
11.3. Market Attractiveness Analysis
11.3.1. By Country
11.3.2. By Type
11.3.3. By End User
11.4. Key Takeaways
12. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
12.1. Historical Market Size Value (US$ billion) Trend Analysis By Market Taxonomy, 2018 to 2022
12.2. Market Size Value (US$ billion) Forecast By Market Taxonomy, 2023 to 2033
12.2.1. By Country
12.2.1.1. Gulf Cooperation Council Countries
12.2.1.2. South Africa
12.2.1.3. Israel
12.2.1.4. Rest of Middle East and Africa
12.2.2. By Type
12.2.3. By End User
12.3. Market Attractiveness Analysis
12.3.1. By Country
12.3.2. By Type
12.3.3. By End User
12.4. Key Takeaways
13. Key Countries Market Analysis
13.1. USA
13.1.1. Pricing Analysis
13.1.2. Market Share Analysis, 2022
13.1.2.1. By Type
13.1.2.2. By End User
13.2. Canada
13.2.1. Pricing Analysis
13.2.2. Market Share Analysis, 2022
13.2.2.1. By Type
13.2.2.2. By End User
13.3. Brazil
13.3.1. Pricing Analysis
13.3.2. Market Share Analysis, 2022
13.3.2.1. By Type
13.3.2.2. By End User
13.4. Mexico
13.4.1. Pricing Analysis
13.4.2. Market Share Analysis, 2022
13.4.2.1. By Type
13.4.2.2. By End User
13.5. Germany
13.5.1. Pricing Analysis
13.5.2. Market Share Analysis, 2022
13.5.2.1. By Type
13.5.2.2. By End User
13.6. United Kingdom
13.6.1. Pricing Analysis
13.6.2. Market Share Analysis, 2022
13.6.2.1. By Type
13.6.2.2. By End User
13.7. France
13.7.1. Pricing Analysis
13.7.2. Market Share Analysis, 2022
13.7.2.1. By Type
13.7.2.2. By End User
13.8. Spain
13.8.1. Pricing Analysis
13.8.2. Market Share Analysis, 2022
13.8.2.1. By Type
13.8.2.2. By End User
13.9. Italy
13.9.1. Pricing Analysis
13.9.2. Market Share Analysis, 2022
13.9.2.1. By Type
13.9.2.2. By End User
13.10. China
13.10.1. Pricing Analysis
13.10.2. Market Share Analysis, 2022
13.10.2.1. By Type
13.10.2.2. By End User
13.11. Japan
13.11.1. Pricing Analysis
13.11.2. Market Share Analysis, 2022
13.11.2.1. By Type
13.11.2.2. By End User
13.12. South Korea
13.12.1. Pricing Analysis
13.12.2. Market Share Analysis, 2022
13.12.2.1. By Type
13.12.2.2. By End User
13.13. Singapore
13.13.1. Pricing Analysis
13.13.2. Market Share Analysis, 2022
13.13.2.1. By Type
13.13.2.2. By End User
13.14. Thailand
13.14.1. Pricing Analysis
13.14.2. Market Share Analysis, 2022
13.14.2.1. By Type
13.14.2.2. By End User
13.15. Indonesia
13.15.1. Pricing Analysis
13.15.2. Market Share Analysis, 2022
13.15.2.1. By Type
13.15.2.2. By End User
13.16. Australia
13.16.1. Pricing Analysis
13.16.2. Market Share Analysis, 2022
13.16.2.1. By Type
13.16.2.2. By End User
13.17. New Zealand
13.17.1. Pricing Analysis
13.17.2. Market Share Analysis, 2022
13.17.2.1. By Type
13.17.2.2. By End User
13.18. Gulf Cooperation Council Countries
13.18.1. Pricing Analysis
13.18.2. Market Share Analysis, 2022
13.18.2.1. By Type
13.18.2.2. By End User
13.19. South Africa
13.19.1. Pricing Analysis
13.19.2. Market Share Analysis, 2022
13.19.2.1. By Type
13.19.2.2. By End User
13.20. Israel
13.20.1. Pricing Analysis
13.20.2. Market Share Analysis, 2022
13.20.2.1. By Type
13.20.2.2. By End User
14. Market Structure Analysis
14.1. Competition Dashboard
14.2. Competition Benchmarking
14.3. Market Share Analysis of Top Players
14.3.1. By Regional
14.3.2. By Type
14.3.3. By End User
15. Competition Analysis
15.1. Competition Deep Dive
15.1.1. Amkor Technology Inc.
15.1.1.1. Overview
15.1.1.2. Product Portfolio
15.1.1.3. Profitability by Market Segments
15.1.1.4. Sales Footprint
15.1.1.5. Strategy Overview
15.1.1.5.1. Marketing Strategy
15.1.2. ASE Technology Holding Co. Ltd.
15.1.2.1. Overview
15.1.2.2. Product Portfolio
15.1.2.3. Profitability by Market Segments
15.1.2.4. Sales Footprint
15.1.2.5. Strategy Overview
15.1.2.5.1. Marketing Strategy
15.1.3. China Wafer Level CSP Co., Ltd.
15.1.3.1. Overview
15.1.3.2. Product Portfolio
15.1.3.3. Profitability by Market Segments
15.1.3.4. Sales Footprint
15.1.3.5. Strategy Overview
15.1.3.5.1. Marketing Strategy
15.1.4. ChipMOS Technologies, Inc.
15.1.4.1. Overview
15.1.4.2. Product Portfolio
15.1.4.3. Profitability by Market Segments
15.1.4.4. Sales Footprint
15.1.4.5. Strategy Overview
15.1.4.5.1. Marketing Strategy
15.1.5. FlipChip International LLC
15.1.5.1. Overview
15.1.5.2. Product Portfolio
15.1.5.3. Profitability by Market Segments
15.1.5.4. Sales Footprint
15.1.5.5. Strategy Overview
15.1.5.5.1. Marketing Strategy
15.1.6. HANA Micron Inc.
15.1.6.1. Overview
15.1.6.2. Product Portfolio
15.1.6.3. Profitability by Market Segments
15.1.6.4. Sales Footprint
15.1.6.5. Strategy Overview
15.1.6.5.1. Marketing Strategy
15.1.7. Jiangsu Changjiang Electronics Technology Co., Ltd.
15.1.7.1. Overview
15.1.7.2. Product Portfolio
15.1.7.3. Profitability by Market Segments
15.1.7.4. Sales Footprint
15.1.7.5. Strategy Overview
15.1.7.5.1. Marketing Strategy
15.1.8. King Yuan Electronics Corp.
15.1.8.1. Overview
15.1.8.2. Product Portfolio
15.1.8.3. Profitability by Market Segments
15.1.8.4. Sales Footprint
15.1.8.5. Strategy Overview
15.1.8.5.1. Marketing Strategy
15.1.9. Nepes Corporation
15.1.9.1. Overview
15.1.9.2. Product Portfolio
15.1.9.3. Profitability by Market Segments
15.1.9.4. Sales Footprint
15.1.9.5. Strategy Overview
15.1.9.5.1. Marketing Strategy
15.1.10. Powertech Technology, Inc.
15.1.10.1. Overview
15.1.10.2. Product Portfolio
15.1.10.3. Profitability by Market Segments
15.1.10.4. Sales Footprint
15.1.10.5. Strategy Overview
15.1.10.5.1. Marketing Strategy
16. Assumptions & Acronyms Used
17. Research Methodology
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