- Summary
- Table Of Content
- Methodology
Multi-Chip Module Market Introduction :
Global Multi-Chip Module Market Size is estimated to reach over USD 38,018.67 Million by 2031 from a value of USD 22,720.63 Million in 2022 and is projected to grow by USD 23,589.92 Million in 2023, growing at a CAGR of 6.1% from 2023 to 2031.
Multi-Chip Module Market Definition & Overview:
A multi-chip modules refer to an electronic package comprising of multiple integrated circuits (ICs) that are assembled into a single device. Moreover, they offer a range of benefits including enhanced performance, increased flexibility, low power consumption, higher reliability, lower cost, and smaller overall packages which enables greater device miniaturization among others. Their aforementioned benefits are major determinants for increasing its deployment in automotive, IT & telecommunication, military & defense, consumer electronics, healthcare and other industries.
Multi-Chip Module Market Insights :
Multi-Chip Module Market Dynamics - (DRO)
Key Drivers :
Rising utilization in consumer electronics industry
Multi-chip modules are primarily utilized in the consumer electronics sector for application in smartphones, wearables, and portable electronic devices among others. Their characteristics like improved performance, lower power supply inductance, compact form factor, lower capacitance loading, and higher reliability are key prospects increasing its utilization in the consumer electronics sector.
Factors including growing penetration of smartphones, and other consumer devices, technological progressions in consumer electronics, and increasing popularity of wearable devices are primary aspects fostering the expansion of the consumer electronics sector.
According to Japan Electronics and Information Technology, the overall production from the Japanese electronics sector was valued at USD 95.2 billion in 2021, depicting a rise of approximately 10% as compared to 2020. Furthermore, according to GSM Association, the adoption of smartphones in the Italy is projected to reach 81% by 2025, depicting an increase from 77% in 2021.
Analysis of market trends concludes that the proliferation of consumer electronics sector is driving the integration of the modules in smartphones, wearables, and portable electronic devices, in turn proliferating the multi-chip module market demand.
Growing IT & telecommunication sector
Multi-chip modules are utilized in IT & telecommunication sector, particularly in high-power communication devices, power amplifiers, servers, and other telecom devices. Their ability to provide good noise isolation, lower power dissipation, and improved signal transmission properties are primary aspects driving its utilization in IT & telecommunication sector.
Factors including the growing deployments of 5G infrastructure, rising adoption of smartphones and advanced communication devices, and increasing demand for wireless communication are crucial prospects driving the expansion of the IT and telecommunication sector.
For instance, according to the Ookla 5G Map, the total deployment of 5G network reached 112 countries in November 2021, representing an incline of 13% as compared to 99 countries in November 2020. Further, according to Ookla, the overall number of 5G deployments increased considerably and reached 85,602 deployments in 2021 in contrast to 17,428 deployments in 2020.
Analysis of market trends concludes that the growing telecommunication sector is fostering the utilization of the modules for its application in telecom base stations and communication devices, in turn driving the multi-chip module market demand.
Key Restraints :
High capital investment required for manufacturing
The initial investment cost for manufacturing of multi-chip module is usually high, attributing to adequate capital investment required for property, machinery, labor, and raw materials, which is a prime factor limiting the market proliferation.
For instance, wire soldering machines, molding machines, and others are among the primary machinery utilized in the manufacturing of the modules. The average cost of automatic wire soldering machines typically costs around USD 3,000 to USD 15,000 per set or more, depending on the specification and functionalities of the equipment.
Additionally, the primary raw materials used in the production of the modules include plastic, silicon, and others. According to Summit Packaging, the polypropylene prices in the United States increased from USD 13.5 to USD 96.5 cents per pound in January of 2021. Similarly, the price of PVC was nearly doubled to around USD 1,625 per ton in January 2021 as compared to 2020. Additionally, the average silicon export price in the United States was valued at USD 34,224 per ton in 2022, witnessing an incline of 58% as compared to the previous year.
Hence, the high initial investment cost for manufacturing of the modules including machinery, raw materials, and other costs is constraining the market proliferation.
Future Opportunities :
Rising application in military & defense industry
The rising application of multi-chip modules in military & defense sector is expected to present potential opportunities for the expansion of the multi-chip module market. Military & defense applications ranging from satellites and rockets to planes and ships, increasingly require electronic systems and subsystems integrated with high performance and functionality in a small form factor. The modules are used in electronic assemblies of military & defense vehicles to enable heightened component miniaturization while providing enhanced performance, which are vital in military & defense environments.
Factors including the increasing investments in military & defense equipment and vehicles along with rising production of air defense systems are primary determinants for driving the expansion of the military & defense sector.
For instance, in December 2022, Dassault Aviation, a France-based manufacturer of military aircraft and business jets, launched its new Rafale fighter aircraft for its application in the French military procurement agency called the Directorate General of Armaments. In addition, in December 2022, the Department of Defence of the United States invested around USD 50 million for the automation of future army ground vehicles that is led by the Army's Robotic Combat Vehicle program. The investment aims at supporting military vehicles designed for surveillance, reconnaissance, and high-risk missions.
Analysis of market trends concludes that the rising investments in the military & defense sector is projected to drive the adoption of the modules for utilization in electronic assemblies of military & defense vehicles, which in turn is emerging as one of many multi-chip module market opportunities that will drive market expansion during the forecast period.
Multi-Chip Module Market Report Insights :
| Report Attributes | Report Details |
| Study Timeline | 2017-2031 |
| Market Size in 2031 | USD 38,018.67 Million |
| CAGR (2023-2031) | 6.1% |
| By Type | NAND-based MCP, NOR-based MCP, eMMC-based MCP, and Others |
| By Sales Channel | Direct Sales and Distributor Sales |
| By End-User | Automotive, IT & Telecommunication, Military & Defense, Consumer Electronics, Healthcare, and Others |
| By Region | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
| Key Players | Micron Technology Inc., Infineon Technologies AG, Tektronix Inc., Samsung, Texas Instruments Incorporated, Macronix International Co. Ltd., Palomar Technologies, Winbond, Microchip Technology Inc., NXP Semiconductors |
Multi-Chip Module Market Segmental Analysis :
Based on the Type :
Based on the type, the market is bifurcated into NAND-based MCP, NOR-based MCP, eMMC-based MCP, and others. The NAND-based MCP segment accounted for the largest revenue share of 43.85% in the year 2022. NAND-based MCP combines low power SDRAM device into a single package to offer the most space effective solution for saving area on the printed circuit boards (PCBs). Moreover, NAND-based MCP offer a range of benefits including faster read/write speed, higher capacity storage, superior performance, and low power consumption among others. The aforementioned benefits of NAND-based MCP are driving its utilization in consumer electronics, automotive, IT & telecommunication, and other industries.
For instance, Winbond offers NAND-based MCP in its product portfolio. The company's NAND-based MCP is primarily designed for utilization in consumer electronics, automotive, telecommunication, and other industrial applications. Assessment of market trends indicates that rising innovation associated with NAND-based MCP for industrial applications is among the prime factors driving the multi-chip module market growth.
The NOR-based MCP segment is anticipated to register the fastest CAGR growth during the forecast period. NOR is a type of non-volatile memory that is primarily used in electronic devices for storing data. Moreover, NOR-based MCP offers multiple benefits including high data retention capability, higher read capability, random access interface, high performance, along with high endurance and reliability among others. Additionally, NOR flash memory is primarily used in automotive, military & defense, and other industrial sectors.
For instance, Macronix International Co Ltd. offers a range of NOR-based MCP for application in automotive, defense, and other industries. The multi-chip module market analysis concluded that Therefore, rising advancements related to NOR-based MCP for deployment in industrial sectors are anticipated to boost the proliferation of the market during the forecast period.
Based on the Sales Channel :
Based on the sales channel, the market is segregated into direct sales and distributor sales. In 2022, the distributor sales segment accounted for the highest multi-chip module market share. The distributor sales channel comprises of both offline and online modes. In the online mode, the modules can be bought from e-commerce websites such as eBay, Alibaba, and others. The offline mode includes the distribution of the modules through specialist stores, regional distributors, and others. In addition, buying from a distributor also benefits the consumer to select the best product available in the market.
For instance, Micron Technology Inc. and Infineon Technologies AG are a manufacturer that offers a range of multi-chip modules through several regional distributors including Mouser Electronics Inc., Arrow Electronics Inc., DigiKey Corporation, and others. The multi-chip module market analysis concluded that the increasing availability of the modules in distributor sales channel is a prime factor proliferating the segment proliferation.
The direct sales channel segment is anticipated to register fastest CAGR growth during the forecast period. In direct sales channel, products are sold directly to customers by the means of various physical outlets such as company outlets, and others. Moreover, the direct sales channel also comprises of online mode, in which the manufacturers sell the products through its own company websites. Additionally, purchasing the modules from direct sales channel offers various benefits such as faster response time, higher product quality, competitive pricing, competitive pricing, and higher return on investments, which are primary factors increasing the purchase of the modules from direct sales channel.
For instance, Tektronix Inc. offers multi-chip modules for direct purchase through company website. Examination of market trends concludes that the availability of the modules in direct sales channels, attributing to its above benefits, is a key factor projected to drive the proliferation of the segment during the forecast period.
Based on the End-User :
Based on the end-user, the market is segregated into automotive, IT & telecommunication, military & defense, consumer electronics, healthcare, and others. In 2022, the consumer electronics segment accounted for the highest multi-chip module market share. Factors including growing penetration of smartphones, and other consumer devices, technological progressions in consumer electronics, and increasing popularity of wearable devices are driving the expansion of the consumer electronics segment.
According to the Brazilian Electrical and Electronics Industry Association (ABINEE), the value of electrical and electronics sector in Brazil reached USD 42.2 billion in 2022, demonstrating a rise of approximately 8% as compared to USD 39.2 billion in 2021. Therefore, the proliferation of consumer electronics sector is driving the adoption of the module for its application in smartphones, wearables, and portable electronic devices, in turn fostering the multi-chip module market growth.
IT & telecommunication segment is expected to witness fastest CAGR growth during the forecast period. The expansion of IT & telecommunication segment is primarily driven by multiple factors including growing deployments of 5G infrastructure, rising adoption of smartphones and advanced communication devices, and increasing demand for wireless communication among others.
For instance, according to Viavi Solutions Inc., the overall number of cities globally with 5G deployments reached 1,947 as of January 2022, along with the addition of 635 new 5G cities in 2021. Evaluation of market trends indicates that the growing telecommunication sector is increasing the utilization of the modules for its application in telecom base stations and communication devices, in turn driving the market proliferation during the forecast period.
Based on the Region :
The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
North America is estimated to reach over USD 12,922.55 Million by 2031 from a value of USD 7,665.94 Million in 2022 and is projected to grow by USD 7,964.15 Million in 2023.
The market growth for in the North American region is mainly driven by its deployment in automotive, IT & telecommunication, military & defense, healthcare, and other industries. Analysis of multi-chip module market trends concludes that the rising integration of the modules in telecommunication infrastructure including base stations and communication devices for transmission of data over the wireless medium has been a prevalent factor for market proliferation in the region.
For instance, according to the GSM Association, the total 5G connection deployments across North America reached nearly 140 million as of 2022. Thus, the growing telecommunication sector is fostering the deployment of the modules in telecom base stations and devices, in turn driving market expansion in the North American region. Further, factors including the increasing investment in aviation & defense and healthcare sectors is anticipated to foster opportunities market proliferation in North America during the forecast period.
Asia-Pacific is expected to grow with the highest CAGR growth of 6.6% and is estimated to reach over USD 9,759.39 Million by 2031 from a value of USD 5,614.27 Million in 2022 and is projected to grow by USD 5,847.94 Million in 2023. In addition, in the region, the China accounted for the maximum revenue share of 31.84% in the same year.
The growing pace of industrialization and development is providing lucrative growth prospects for the market in the region. In addition, factors including the proliferation of various industries including consumer electronics, IT & telecommunication, and others are driving the market expansion 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, and it is anticipated to grow at a substantial rate to reach USD 21.18 billion by 2025. Analysis of multi-chip module market trends concludes that the growing consumer electronics sector is driving the deployment of the modules for application in electronic assemblies of smartphones, wearables, and portable electronic devices, thereby, boosting the market proliferation in the Asia-Pacific region.
Top Key Players & Market Share Insights:
The market is highly competitive with major players providing products to the national and international markets. The companies operating in multi-chip module industry are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in market. Key players in the multi-chip module market include-
- Micron Technology Inc.
- Infineon Technologies AG
- Winbond
- Microchip Technology Inc.
- NXP Semiconductors
- Tektronix Inc.
- Samsung
- Texas Instruments Incorporated
- Macronix International Co. Ltd.
- Palomar Technologies
Recent Industry Developments :
- In June 2021, NXP Semiconductors announced the incorporation of Gallium Nitride (GaN) technology to its multi-chip module platform for development of energy-efficient telecommunication infrastructure. The integration of GaN technology in NXP's multi-chip modules increases the efficiency of 5G infrastructure by 8% while ensuring optimal performance.
Key Questions Answered in the Report
What is multi-chip module? +
A multi-chip module refers to an electronic package comprising of multiple integrated circuits (ICs) that are assembled into a single device.
What specific segmentation details are covered in the multi-chip module report, and how is the dominating segment impacting the market growth? +
For instance, by type segment has witnessed NAND-based MCP as the dominating segment in the year 2022, owing to the increasing adoption of NAND-based MCP in consumer electronics, automotive, IT & telecommunication, and other industrial applications.
What specific segmentation details are covered in the multi-chip module market report, and how is the fastest segment anticipated to impact the market growth? +
For instance, by end-user segment has witnessed IT & telecommunication as the fastest-growing segment during the forecast period due to rising adoption of multi-chip module in telecom base station and advanced communication devices among others.
Which region/country is anticipated to witness the highest CAGR during the forecast period, 2023-2031? +
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 consumer electronics, IT & telecommunication, and others.
