Home > > Semiconductor And Electronics > > 3D Semiconductor Packaging Market Size, Analysis | Demand 2031
Id: CBI_ 1326 | Pages: 272 | Format : PDF | Published : | Author : Amit Sati
3D Semiconductor Packaging Market size is estimated to reach over USD 35.30 Billion by 2031 from a value of USD 9.43 Billion in 2022 and is projected to grow by USD 10.73 Billion in 2023, growing at a CAGR of 16.1% from 2023 to 2031.
3D semiconductor packaging is a type of advanced packaging technology in which multiple layers of electronic components are often stacked together and interconnected to perform as a single device. Moreover, the packaging offers a range of benefits including reduced space consumption, lower power loss, improved performance, and enhanced efficiency among others. Its aforementioned benefits are key determinants for increasing the utilization of technology in electronics, automotive, medical, telecommunication, aerospace & defense, and other industries.
3D semiconductor packaging is primarily used in the consumer electronics sector for the integration of additional features within integrated circuits of electronic devices, which in turn results in improved connectivity and reliability. Moreover, the packaging provides a medium for connecting the chip to the external environment, such as printed circuit board in electronic devices. Also, the packaging offers additional protection against threats including chemical contamination, mechanical impact, and light exposure. Its above mentioned characteristics are key determinants for increasing the utilization of technology in consumer electronic sector.
Factors including the growing requirement for laptops and other consumer devices with advanced features, increasing demand for miniaturized circuits in electronic devices, and advancements in consumer electronics including adoption of IoT and AI are key prospects driving the expansion of the consumer electronics sector.
According to the Association of German Banks, the manufacturing and sales of electronics sector in Germany depicted a rise of 10% in 2021 as opposed to 2020. Further, according to the Brazilian Electrical and Electronics Industry Association (ABINEE), the value of electrical and electronics sector in Brazil reached up to USD 42.2 billion in 2022, observing a rise of 8% as compared to USD 39.2 billion in 2021.
Analysis of market trends concludes that the growing consumer electronics sector is driving the requirement for the packaging, in turn proliferating the 3D semiconductor packaging market demand.
3D semiconductor packaging is used in the medical sector, particularly for application in medical equipment among others. The packaging is often used in delicate and precise medical equipment including ingestible cameras, pacemakers, along with surgical robots and medical power modules. Its numerous benefits of including improved heat dissipation, reduced power consumption, and enhanced performance are further increasing its adoption in medical sector.
Factors including the growing investment in healthcare expenditure and increasing investments in production of advanced medical devices are driving the proliferation of the medical sector.
For instance, according to the International Trade Administration (ITA), the medical device sector in Canada was valued at USD 6.5 billion in 2022, with primary activities including research & development and manufacturing of medical diagnostic, and therapeutic devices.
Analysis of market trends concludes that the expansion of medical sector is increasing the integration of the packaging in medical equipment, in turn driving the 3D semiconductor packaging market demand.
The implementation of 3D ICs is associated with certain limitations and operational challenges, which is a key factor limiting market expansion. For instance, 3D ICs offer extremely dense multi-level integration per unit footprint, which often generates challenges for thermal management. Moreover, the increased multi-level integration results in high on-chip temperatures.
Similarly, 3D ICs have various other issues including a larger form factor, longer design cycles, and requirement for a larger silicon interposer. Additionally, the manufacturing of 3D ICs is often associated with overheating, which in turn reduces threshold voltage and leads to degradation of mobility.
Assessment of market trends suggest that the aforementioned limitations associated with 3D ICs are impacting the overall utilization and demand of the packaging, thereby restraining the expansion of the market.
The adoption of electric vehicles is expected to present potential opportunities for the expansion of the 3D semiconductor packaging market. The packaging is often used in electronic systems of modern EVs including anti-lock braking system, power steering, infotainment system, cameras, safety sensors, Advanced Driver Assistance System (ADAS), and others. It is revolutionizing the EV sector by enabling miniaturization, higher performance, and enhanced functionality of EV's electronic system.
Factors including the progressions in electro mobility, availability of a broad range of models, and eco-friendliness are driving the adoption of electric vehicles.
For instance, according to the International Energy Agency (IEA), the adoption of electric cars in the United Kingdom reached 312,000 units in 2021, depicting a substantial rise of 78.3% in comparison to 175,000 units in 2020. Additionally, according to IEA, electric car registrations in China reached 3.3 million units in 2021, representing a significant rise of over 100% as compared to 1.2 million units in 2020.
Analysis of market trends concludes that the rising adoption of electric vehicles is anticipated to increase the utilization of the packaging in electronic systems of electric vehicles which is emerging as one of many 3D semiconductor packaging market opportunities that will drive market expansion during the forecast period.
Report Attributes | Report Details |
Study Timeline | 2017-2031 |
Market Size in 2031 | USD 35.30 Billion |
CAGR (2023-2031) | 16.1% |
By Technology | 3D Through Silicon Via Technology, 3D Package on Package Technology, 3D Fan Out Based Technology, and 3D Wire Bonding Technology |
By Material | Organic Substrate, Resins, Lead Frame, Bonding Wire, and Die Attach Materials |
By End-User | Electronics, Automotive, Medical, Telecommunication, Aerospace & Defense, and Others |
By Region | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Key Players | Amkor Technology, ASE Technology Holding Co. Ltd, Siliconware Precision Industries Co. Ltd, JCET Group, Intel Corporation, Taiwan Semiconductor Manufacturing Company Limited, Sony Corporation, Samsung, 3M, Advanced Micro Devices Inc. |
Geographies Covered | |
North America | U.S. Canada Mexico |
Europe | U.K. Germany France Spain Italy Russia Benelux Rest of Europe |
APAC | China South Korea Japan India Australia ASEAN Rest of Asia-Pacific |
Middle East and Africa | GCC Turkey South Africa Rest of MEA |
LATAM | Brazil Argentina Chile Rest of LATAM |
Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, Restraint or Challenges, Opportunities, Environment & Regulatory Landscape, PESTLE Analysis, PORTER Analysis, Key Technology Landscape, Value Chain Analysis, Cost Analysis, and Regional Trends & Forecast |
Based on the type, the market is bifurcated into 3D through silicon via technology, 3D package on package technology, 3D fan out based technology, and 3D wire bonding technology. In 2022, the 3D fan out based technology segment accounted for the highest 3D semiconductor packaging market share.
3D fan-out based technology enables assembly of one or more dies in an advanced package, in turn allowing semiconductor chips to perform better for applications including computing, networking, IoT, and smartphones among others. Moreover, 3D fan-out based technology offers several benefits including advanced integrated circuit packaging with improved reliability, reduced cost, and higher integration levels with multi-chip modules in a small form factor. The above benefits of 3D fan-out based technology are further increasing its utilization in consumer electronics, telecommunication, and other related applications.
For instance, Taiwan Semiconductor Manufacturing Company Limited offers integrated 3D fan-out based technology for wafer level packaging. The 3D fan-out based technology is designed for applications including smartphones, high performance computing, and others. Therefore, the rising development of 3D fan-out based technology for applications including consumer electronics, telecommunication, and others is a prime factor proliferating the 3D semiconductor packaging market growth.
The 3D package on package technology segment is anticipated to register the fastest CAGR growth during the forecast period. The package on package refers to a semiconductor packaging technique that is mainly designed to address the necessity for compact assemblies. The package on package technique utilizes two Ball Grid Array (BGA) packages that are mounted one above the other with a standard interface for routing signals between them. Additionally, 3D package on package technology offers smaller footprint and improved signal integrity, making the technology ideal for deployment in consumer devices, and other industrial applications.
For instance, CAPLINQ Corporation is among few of the manufacturers that offers 3D package on package technology for semiconductor packaging. Analysis of 3D semiconductor packaging market trends concludes that the increasing advancements associated with 3D package on package technology is a vital factor expected to drive the expansion of the market during the forecast period.
Based on the material, the market is segregated into organic substrate, resins, lead frame, bonding wire, and die attach materials.In 2022, the resins segment accounted for the highest 3D semiconductor packaging market share. Resins such as epoxy resins are primarily used in the packaging, attributing to the properties including low shrinkage, high adhesive strength, excellent chemical resistance, superior electrical properties, high heat resistance, and low cost among others. Moreover, epoxy resins have a relatively low curing temperature, low viscosity before curing, short curing time, and are capable of significantly improving the efficiency of the packaging process. Analysis of 3D semiconductor packaging market trends concludes that the above benefits of epoxy resins are key determinants for driving its utilization in the packaging.
For instance, Addison Clear Wave Coatings Inc. provides a range of UV-curable, UV-snap cure, and dual-cure epoxy resins that are optimized for utilization in semiconductor packaging applications including die attach and chip packaging. Hence, the increasing innovation associated with epoxy resins for application in semiconductor packaging is a prime factor fostering the 3D semiconductor packaging market growth.
Lead frame segment is expected to witness the fastest CAGR growth during the forecast period. Lead frame is a thin metal plate part that is used in semiconductor packages including IC, LSI, and others. Lead frames are capable of supporting and fixing an IC chip, while functioning as connection pins when the chip is mounted on a printed wiring board. Moreover, lead frames offer several benefits including maximization in chip performance, heat-diffusing function, and the ability to facilitate longer operational period. The aforementioned benefits of lead frames are further increasing the utilization in the packaging.
For instance, TOPPAN Inc. offers various types of lead frames including fine pitch lead frame, downset lead frame, and others that are primarily designed for application in semiconductor packaging. The 3D semiconductor packaging market analysis concluded that the rising development of lead frames for application in semiconductor packagig is anticipated to boost the market proliferation during the forecast period.
Based on the end-user, the market is segregated into electronics, automotive, medical, telecommunication, aerospace & defense, and others. The electronics segment accounted for the largest revenue share of 29.01% in the year 2022. Factors including the rising requirement for miniaturized circuits in electronic devices, growing adoption of smartphones, computers, and other consumer devices, and rising popularity of smart wearable devices are driving the expansion of the electronics segment. According to GSM Association, the adoption of smartphones in Italy is projected to reach 81% by 2025, witnessing an increase from 77% in 2021. The proliferation of the smartphone market in Italy is resulting in the expansion of electronics sector which in turn drives the demand for semiconductor packaging solutions.
Further, the packaging solutions enable the integration of additional features within integrated circuits of the electronic devices to enhance connectivity and reliability. Thus, the growing electronics sector is increasing its utilization, which in turn driving the market proliferation.
Automotive segment is expected to witness the fastest CAGR growth during the forecast period. The expansion of automotive segment is primarily driven by multiple factors including progressions in autonomous driving systems, growing integration of enhanced automotive safety solutions, and rising production of automobiles among others.
For instance, according to the International Organization of Motor Vehicle Manufacturers, the overall automotive production in Asia-Pacific reached 50,020,793 units in 2022, witnessing a growth of 7% from 46,768,800 units in 2021. The 3D semiconductor packaging market analysis concluded that the rising automobile production is increasing the demand of packaging for utilization in automobile electronics including anti-lock braking system, power steering, infotainment system, safety sensors, advanced driver assistance system, and others, in turn contributing to market expansion during the forecast period.
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
North America is estimated to reach over USD 11.58 Billion by 2031 from a value of USD 3.08 Billion in 2022 and is projected to grow by USD 3.51 Billion in 2023. The market proliferation for 3D semiconductor packaging in the North American region is driven by the deployment of technology in automotive, telecommunication, medical, and other sectors. Assessment of market trends suggests that the expansion of medical sector and increasing integration of the packaging in medical devices are among the significant factors driving the market proliferation in the region.
For instance, according to the European Medical Technology Industry, the medical device sector in the U.S. accounted for largest share in the global medical device market in 2021, representing approximately 43.5% of the global market. The above factors are driving the integration of 3D semiconductor packaging for application in medical equipment, in turn driving the market proliferation in North America. Furthermore, the increasing investments in electric vehicles and 5G infrastructure are projected to drive the market expansion in North America during the forecast period.
Asia-Pacific is expected to grow with the highest CAGR growth of 16.6% and is estimated to reach over USD 8.75 Billion by 2031 from a value of USD 2.25 Billion in 2022 and is projected to grow by USD 2.56 Billion in 2023. In addition, in the region, the China accounted for the maximum revenue share of 27.4% in the same year. The growing pace of industrialization and development is creating lucrative proliferation aspects for the market in the region. Examination of market trends concludes that the factors including the proliferation of various industries including consumer electronics, automotive, and others are driving the market expansion for 3D semiconductor packaging in the Asia-Pacific region.
For instance, according to the India Brand Equity Foundation, the consumer electronics sector in India was valued at USD 9.84 billion in 2021, while it is estimated to grow at a significant rate to reach USD 21.18 billion by 2025. The packaging provides a medium for connecting the chip to the external environment, such as printed circuit board in electronic devices while offering additional protection against threats including chemical contamination, mechanical impact, and light exposure. Therefore, the growing consumer electronics sector in the Asia-Pacific region is anticipated to drive the demand for the packaging, thereby proliferating market expansion in the region during the forecast period.
The 3D semiconductor packaging market is highly competitive with major players providing their products to the national and international markets. The companies operating in 3D semiconductor packaging industry are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in the market. Key players in the mar market include-
3D semiconductor packaging is a type of advanced packaging technology involving semiconductor chips in which multiple layers of electronic components are often stacked together and interconnected to perform as a single device.
For instance, by technology segment has witnessed 3D fan-out based technology as the dominating segment in the year 2022, owing to its increasing utilization in consumer electronics, telecommunication, and other related applications.
For instance, by end-user segment has witnessed automotive as the fastest-growing segment during the forecast period due to rising adoption of 3D semiconductor packaging in automobile electronics including anti-lock braking system, infotainment system, ADAS, and others.
Asia-Pacific is anticipated to register fastest CAGR growth during the forecast period due to rapid pace of industrialization and growth of multiple industries such as including consumer electronics, automotive, and others.