FPGA Market

FPGA Market Outlook (2023 to 2033)

The global FPGA market size is projected to expand at a CAGR of 7.6% reaching USD 15,023.5 million by 2033 from USD 7,243.6 million in 2023. The growing adoption of FPGAs in areas such as cybersecurity, data networks, and DPI is expected to drive market growth during the forecast period.

As FPGAs become more prevalent in the military and aerospace industry, their use in areas like image processing, waveform generation, and data encryption is likely to drive market growth.

The proliferation of smartphone technology and electronic chips in automobiles is expected to boost the prospects of FPGA products on the market in the coming decade.

The market for field-programmable gate arrays is expanding rapidly across a wide range of industries since the devices can be easily reprogrammed in the field, allowing for instant prototyping and debugging of many different applications. To design specialized integrated circuits, field-programmable gate arrays are employed. Programming and configuring field-programmable gate arrays is done with the help of Hardware Description Languages (HDL), such as VHDL (VHSIC Hardware Description Language) or Verilog. The FPGA is widely used in financial markets to conduct real-time trades, risk analysis, and many more.

During the latter part of 2021, the demand for FPGA components increased due to the rise of manufacturing activity and on account of the increase in the adoption of telecommunications, automotive products data centers, and electronic devices. In addition, many companies are consequently focusing their efforts on setting up factories in new geographical regions to reduce the risk associated with supply chain disruptions during crisis periods.

Drivers:

• Growing demand for high-performance computing and data-intensive applications.
• Increasing adoption of FPGA technology in emerging sectors like artificial intelligence (AI), Internet of Things (IoT), and automotive.
• Flexibility and reconfigurability of FPGAs enabling rapid prototyping and faster time-to-market.
• Advancements in FPGA architectures and programming languages, empower developers to harness its full potential.
• Rising need for energy-efficient solutions and FPGA's ability to deliver improved power efficiency.

Restraints:

• Complex design and programming processes require specialized skills and expertise.
• Limited availability of FPGA engineers and the need for continuous upskilling.
• Cost considerations, as FPGA development can involve significant upfront investment.
• Balancing performance with power consumption and heat dissipation challenges.
• Integration complexities when combining FPGAs with other hardware or software components.

Investment Opportunities:

• Investing in FPGA manufacturing companies, driven by the increasing demand for advanced FPGA solutions.
• Supporting FPGA development tools and platforms to facilitate easier design and programming.
• Exploring opportunities in FPGA IP (intellectual property) licensing and customized solutions.
• Investing in FPGA-related research and development and innovations to stay at the forefront of technological advancements.
• Collaborating with FPGA vendors to develop application-specific solutions for various industries.

Trends Shaping the Future of FPGA Technology

• FPGA acceleration in cloud computing to enhance performance and scalability.
• Convergence of FPGA and AI technologies, enabling acceleration of machine learning algorithms.
• Integration of FPGAs with edge devices to enable real-time data processing and analytics.
• Growing focus on security and reliability enhancements in FPGA designs.
• Increasing adoption of FPGA-based hardware acceleration in data centers for efficient workload processing.

Attributes	Details
FPGA Market CAGR (2023 to 2033)	7.6%
Estimated Market Size (2023)	USD 7,243.6 million
FPGA Market Forecast Size (2033)	USD 15,023.5 million

On a Global Level, how is the FPGA Industry Evolving in the Current Technological Market?

Attributes	Details
2018 (USD million)	5,209.1 million
2022 (USD million)	6,735.6 million
CAGR (2018 to 2022)	6.6%

Due to the introduction of new products with different features at a low cost, the field-programmable gate array market has seen significant growth due to the unforeseen scope of this technology in various industries. Increasing smartphone use and the proliferation of electronic content in cars drive market growth for field-programmable gate arrays. In addition, embedded computing has widely implemented field-programmable gate arrays for building complex, mission-critical systems.

To run highly optimized autonomous operations, data centers are an absolute necessity for the adoption of IoT. Several FPGAs are now found in data centers, employed for offloading and accelerating specific services. In addition, an FPGA is used to offload computing workloads from the CPU to improve performance, reduce response time, and reduce energy consumption in 5G applications, high-performance computing, and ADAS.

Their handling of hardware acceleration and FPGAs have been proven to be useful for HPC applications. As IoT is increasingly used in different verticals, the demand for data centers is forecast to rise substantially, improving the performance of data centers through the use of FPGAs.

FPGA market growth is driven by increasing network traffic and the need to process large amounts of data across data centers. Investing in the establishment of new data centers by various software providers is likely to open more market opportunities for FPGA in the market. FPGAs can enhance the performance of military equipment like radars, sensors, and combat systems by enhancing their range, performance, and defense capability without affecting their overall quality. The development of field-programmable gate arrays for military applications is a constant innovation since more countries are focusing on improving their military establishments.

The rapid growth of the FPGA industry has been attributed to the increased use of FPGAs by cloud customers as a resource under Infrastructure-as-a-Service. FPGAs are expected to grow rapidly in response to a growing demand for customizable integration.

Due to the rising complexity and expensive price of application-specific integrated circuits, FPGAs are likely to gain more popularity in the market shortly. Hence, FPGAs are predicted to gain more popularity in the coming years.

What are the Technological Challenges in the FPGA Industry?

In contrast to this, the power consumption is higher for field-programmable gate arrays, and there is no standard for the verification technique for the industry, which inhibits the growth of the technology. Because of a critical flaw in the hardware of FPGAs, they are vulnerable to security attacks allowing hackers to gain complete control over chips. This is likely to therefore decline the market growth of FPGAs in the market.

FPGAs are also expensive to implement and maintain, which is a factor limiting their growth in the market. With a rise in demand for highly skilled professionals who can write VHDL or Verilog code and possess fundamental knowledge of digital systems, FPGA market sales have declined. The extremely fast I/O rates of FPGA designs and the bidirectional data buses make it challenging to verify the validity of valid data in a reasonable amount of time.

Programmers are required to use the resources available in the FPGA IC once they select and use the FPGA IC in their design. This is likely to limit the size and number of features of the design. Choosing an appropriate FPGA at the beginning of a project can mitigate this problem. As FPGAs are manufactured in greater quantities, the cost per unit also increases. In contrast, ASIC implementation has a lower cost per unit. This is likely to result in a decrease in the demand for FPGA in the market.

How is the SRAM Technology Segment Propelling FPGA Industry Growth?

With a CAGR of 7.5%, SRAM is expected to dominate the technology segment of the global FPGA industry over the next few years. The most common way to program. FPGAs are using SRAM, which allows for easier reconfiguration and is, in many ways, the most reliable way to program FPGAs. Compared to DRAM, SRAM performs better in terms of speed and space. As a result, it is faster to operate.

Consequently, it is faster to access information or data when compared to DRAM. As a result, there is a significant increase in demand for SRAM in the FPGA industry.

As a technology, SRAM is used to design speed-sensitive caches in an environment where it consumes medium power consumption during operation. As a result, this technology is highly sought after by the market. The CMOS fabrication process is used to develop SRAM-based FPGAs, which allow the device to be developed with higher power efficiency and more logic density, in comparison to other technologies.

Hence this is leading to the growth of SRAM in the FPGA industry. As a consequence, presently, more and more SRAM FPGAs are being used in harsh radiation environments. Thus, an upsurge in sales of SRAM is expected to drive the FPGA market.

Besides being widely used in wireless communications and telecom systems, the market for SRAM-based FPGAs is also seeing growth in consumer goods applications, such as military & aerospace applications. Although FPGAs based on SRAM are highly volatile, they cannot store information without a separate power supply.

To overcome this challenge, leading companies are developing advanced SRAM chip designs to optimize FPGA-based devices for the market.

How are Low-End Configurations Driving the Growth of FPGA Markets?

Low-End holds the largest market share in the FPGA segment. High energy efficiency, low-logic density, and ease of use are some of the key attributes that help the low-end FPGA segment grow in the market. The Low-End segment is expected to grow at a CAGR of 7.5% during the forecast period. Low-end FPGAs are extremely energy efficient and provide a large range of functionalities at a minimal cost.

To strengthen their low-end FPGA product portfolios, FPGA manufacturers are investing in organic growth strategies. The software also provides the client with design security as well as protection from tampering, theft, and counterfeiting. In addition to video and image processing, car audio and consumer electronics, industrial, military, displays, and wireless applications use low-end FPGAs. As a result, low-end FPGAs are experiencing growth in the market.

An increasing number of manufacturers in these areas are projected to cause low-end FPGAs to grow significantly. Furthermore, producers are striving to develop products with higher levels of performance and lower power consumption to meet customers' needs. All of these factors are projected to boost market growth for low-end FPGAs in the market.

How are the Various Regions Performing in the FPGA Industry?

2022 Value Share in Global Market	CAGR (2023 to 2033)
United States	24.8%
Japan	5.3%
China	8.2%
India	13.1%
United Kingdom	9.1%

The United States accounted for the highest value share in the global market in 2022 at 24.8%. This is due to government initiatives to support electronic and semiconductor manufacturing firms in the market.

It is evident that the growing number of technologically advanced companies, as well as the telecommunication and military industries in these countries, are propelling the market demand for FPGA in United States markets.

Asia Pacific is projected to dominate the FPGA market during the forecast period. As a result of ongoing investments and measures taken by the Chinese government to boost industry growth, China captured an 8.2% value share in the global market in 2022.

India's value share in the global market in 2022 reached 13.1%. Growing Internet penetration, advancing technology, the proliferation of mobile devices including 4G and 5G, and increasing numbers of consumers using technologically advanced and connected devices have all contributed to the growth of this market in this region. Increasing industrial automation in the region is also driving the demand for FPGAs in China.

Over the forecast period, Japan is projected to achieve a CAGR of 5.7% in 2033. A rise in both industrial production and consumption is expected to boost the market value of the South Korean region by 5% CAGR in the upcoming years.

Technological companies, on the other hand, are shifting their data centers from onsite to cloud-based equipment, which is expected to spur significant growth prospects for the regional demand for FPGAs.

The United Kingdom accounted for a 9.1% value share in the global market in 2022. During the forecast period, the FPGA market in the United Kingdom is expected to grow at a compound annual growth rate of 6.3%. FPGAs are expected to see a high degree of growth in the United Kingdom due to the emergence of IoT and Machine-to-Machine technologies.

This is likely to contribute to the growth of the FPGA market in the United Kingdom. The increasing presence of electronic devices and automotive industry manufacturers in this region has brought a boost to the demand for FPGAs.

What is the Level of Competition for FPGA in the Market?

Through strategic partnerships, manufacturers can increase production and meet consumer demand, increasing both their revenues and market share.

The introduction of new products and technologies is likely to allow end-users to reap the benefits of new technologies. Increasing the company's production capacity is one of the potential benefits of a strategic partnership.

Recent Developments in the FPGA Industry:

• Arista Networks announced the launch of SwitchApp for Arista 7130 in May 2021, a switch with ultra-low latencies that reduce latency to under one-third of competing solutions. Arista EOS ® (Extensible Operating System) is fully integrated with SwitchApp, which is based on the latest programmable FPGA technology. Using these technologies together provides the customers with unprecedented access to financial markets, taking advantage of the flexibility of a full-featured Layer 2/3 switch and the low latency that can be achieved from a highly tuned solution.
• In June 2021, Lattice Semiconductor launched its newest general-purpose FPGA family based on its popular Nexus Platform, The CertusPro-NX. Lattice Semiconductor marked a significant moment for low-power FPGAs during the purchase of the Nexus platform. To tackle a variety of workloads that differ by developer use cases, Lattice built an entirely new CertusPro-NX family of solutions.
• In August 2021, Achronix launched Speedster7t FPGA with the help of Synopsys DesignWare IP. Synopsys has licensed Achronix's tools for its Speedster7t FPGA and achieved first-pass silicon success using its Speedster7t FPGA.
• The QuickLogic Corporation announced in February 2022 that its PolarPro 3 family of low-power, SRAM-based FPGAs would be available to provide a solution to the semiconductor supply availability challenges. In addition to its superb flexibility, this highly flexible family has a power consumption as low as 55nA, a small footprint in small packages, as well as multiple die options.
• In February 2022, AMD announced the acquisition of Xilinx in an all-stock transaction. It creates the industry's most comprehensive portfolio of cutting-edge computing, graphics, and adaptive SoC products, as well as the largest scale in high-performance and adaptive computing. It originally announced the deal on October 27, 2020. AMD expects to generate free cash flow and non-GAAP EPS after the acquisition. Xilinx's acquisition is likely to enable the company to create a leading high-performance and adaptive computing company with products, clients, and markets that are highly complementary along with differentiated intellectual property and world-class talent.

Key Players

• XILINX INC.
• Microsemi Corporation
• Achronix
• e2v
• INTEL CORPORATION
• MICROCHIP TECHNOLOGIES INC.
• Lattice Semiconductor Corporation
• Atmel
• Nallatech
• QuickLogic Corporation

Key Segments Covered in the FPGA Market Analysis

By Configuration:

• Low-End FPGA
• Mid-Range FPGA
• High-End FPGA

By Node Size:

• ≤16 NM
• 22/28 to 90 NM
• >90 NM

By Technology:

• SRAM
• Flash
• Antifuse

By Vertical:

• Telecommunications
  • Wired Communication
  • Optical Transport Network (OTN)
  • Backhaul and Access Network
  • Network Processing
  • Wired Connectivity
  • Packet-based Processing and Switching
  • Wireless Communication
  • Wireless Baseband Solutions
  • Wireless Backhaul Solutions
  • Radio Solutions
  • 5G
• Consumer Electronics
• Test, Measurement & Emulation
• Data Centers & Computing
  • Storage Interface Controls
  • Network Interface Controls
  • Hardware Acceleration
  • High-performance Computing
• Military & Aerospace
  • Avionics
  • Missiles and Munition
  • Radars and Sensors
  • Others
• Industrial
  • Video Surveillance Systems
  • Machine Vision Solutions
  • Industrial Networking Solutions
  • Industrial Motor Control Solutions
  • Robotics
  • Industrial Sensors
• Automotive
  • ADAS
  • Automotive Infotainment and Driver Information
  • Sensor Fusion
• Healthcare
  • Imaging Diagnostic Systems
  • Wearable Devices
  • Others
• Multimedia
  • Audio Devices
  • Video Processing
• Broadcasting
  • Broadcast Platform Systems
  • High-End Broadcast Systems

By Region:

• North America
• Europe
• Asia Pacific
• The Middle East and Africa
• Latin America

Frequently Asked Questions

Which industry is the key consumer of FPGAs?

The primary consumer for FPGAs is the telecommunications industry.

Who are the Key FPGA Market Players?

Some of the key players in the FPGA market include Intel, Xilinx, and Microsemi.

What is the Current Market Valuation?

The market is estimated to secure a valuation of USD 7,243.6 million in 2023.

How Big will be the FPGA Market by 2033?

The market is estimated to reach USD 15,023.5 million by 2033.

Which End-use Industry holds Lucrative Opportunities?

The aerospace and defense sector holds high revenue potential in the FPGA Market.