Multi-Chip Module Market Forecast 2023 - 2031

Report ID : CBI_1382 |  Category : Semiconductor And Electronics   | Published Date:     |  Format :   ms word  ms Excel  PDF

Segments Covered :
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 Asia-Pacific, Europe, North America, Latin America, Middle East & Africa
Report Snapshots :
Base Year: 2022
CAGR: 6.1%
Forecast Year: 2023 - 2031
Revenue 2022: $22,720.63 Mn
Revenue 2023: $23,589.92 Mn
Revenue 2031: $38,018.67 Mn

Multi-Chip Module Market Forecast 2023 - 2031

Market Overview :

Multi-Chip Module Market 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.

Market Definition :

A multi-chip module refers to an electronic package comprising of multiple integrated circuits (ICs) that are assembled into a single device. Moreover, multi-chip modules 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. The aforementioned benefits of multi-chip modules are major determinants for increasing its deployment in automotive, IT & telecommunication, military & defense, consumer electronics, healthcare and other industries.

Multi-Chip Module Market :

Multi-Chip Module Market

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Market Dynamics :

Multi-Chip Module Market Dynamics

Drivers :

  • Rising utilization of multi-chip module in consumer electronics industry is driving the market growth.

    Multi-chip modules are primarily utilized in the consumer electronics industry for application in smartphones, wearables, and portable electronic devices among others. The characteristics of multi-chip modules including improved performance, lower power supply inductance, compact size, 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 growth of the consumer electronics sector.

    According to Japan Electronics and Information Technology, the overall production from the Japanese electronics industry was valued at USD 95.2 billion in 2021, depicting a growth 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.

    Therefore, the growth of consumer electronics sector is driving the integration of multi-chip modules in smartphones, wearables, and portable electronic devices, in turn proliferating the growth of the market.

  • Growing IT & telecommunication sector is spurring the market growth.

    Multi-chip modules are utilized in IT & telecommunication sector, particularly in high-power communication devices, power amplifiers, servers, and other telecom devices. The ability of multi-chip modules 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 growth 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.

    Hence, the growing telecommunication industry is fostering the utilization of multi-chip modules for its application in telecom base stations and communication devices, in turn driving the growth of the market.

Restraint :

  • High capital investment required for manufacturing multi-chip modules is restraining the market growth.

    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 growth.

    For instance, wire soldering machines, molding machines, and others are among the primary machinery utilized in the manufacturing of multi-chip 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 multi-chip 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 multi-chip modules including machinery, raw materials, and other costs is constraining the growth of the market.

Opportunities :

  • Rising application of multi-chip module in military & defense industry is expected to promote potential opportunities for market growth.

    The rising application of multi-chip modules in military & defense industry is expected to present potential opportunities for the growth 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. Multi-chip 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 growth of the military & defense industry.

    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.

    Therefore, the rising investments in the military & defense sector is projected to drive the adoption of multi-chip modules for utilization in electronic assemblies of military & defense vehicles, in turn promoting opportunities for market growth during the forecast period.

 

Multi-Chip Module Market Report Coverage :

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

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Market Segmentation :

By 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 is a manufacturer of multi-chip modules that 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. Thus, rising innovation associated with NAND-based MCP for industrial applications is among the prime factors driving the growth of the market.

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. Therefore, rising advancements related to NOR-based MCP for deployment in industrial sectors are anticipated to boost the growth of the market during the forecast period.

Global Multi-Chip Module Market, By Type, 2022

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By Sales Channel :

Based on the sales channel, the market is segregated into direct sales and distributor sales. The distributor sales segment accounted for the largest revenue share in the year 2022. The distributor sales channel of multi-chip modules comprises of both offline and online modes. In the online mode, the multi-chip modules can be bought from e-commerce websites such as eBay, Alibaba, and others. The offline mode includes the distribution of multi-chip 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 among few of the multi-chip module manufacturers that offers a range of multi-chip modules through several regional distributors including Mouser Electronics Inc., Arrow Electronics Inc., DigiKey Corporation, and others. Therefore, the increasing availability of multi-chip modules in distributor sales channel is a prime factor proliferating the growth of the segment.

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 multi-chip 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 multi-chip modules from direct sales channel.

For instance, Tektronix Inc. is among few of the multi-chip module manufacturers that offer multi-chip modules for direct purchase through company website. Thus, the availability of multi-chip modules in direct sales channels, attributing to its above benefits, is a key factor projected to drive the growth of the segment during the forecast period.

By End-User :

Based on the end-user, the market is segregated into automotive, IT & telecommunication, military & defense, consumer electronics, healthcare, and others. The consumer electronics segment accounted for the largest revenue share in the year 2022. Factors including growing penetration of smartphones, and other consumer devices, technological progressions in consumer electronics, and increasing popularity of wearable devices are driving the growth 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 growth of approximately 8% as compared to USD 39.2 billion in 2021. Therefore, the growth of consumer electronics industry is driving the adoption of multi-chip module for its application in smartphones, wearables, and portable electronic devices, in turn fostering the growth of the market.

IT & telecommunication segment is expected to witness fastest CAGR growth during the forecast period. The growth 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. Thus, the growing telecommunication industry is increasing the utilization of multi-chip modules for its application in telecom base stations and communication devices, in turn driving the market growth during the forecast period.

By Region :

The regional segment includes North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.

 
North America Multi-Chip Module Market, 2022 (USD Million)

Regional Growth Insights

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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 multi-chip module in the North American region is mainly driven by its deployment in automotive, IT & telecommunication, military & defense, healthcare, and other industries. Moreover, the rising integration of multi-chip 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 growth 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 industry is fostering the deployment of multi-chip modules in telecom base stations and devices, in turn driving market growth in the North American region. Further, factors including the increasing investment in aviation & defense and healthcare sectors is anticipated to foster opportunities for market growth 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 growth of various industries including consumer electronics, IT & telecommunication, and others are driving the market growth for multi-chip module 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. Hence, the growing consumer electronics sector is driving the deployment of multi-chip modules for application in electronic assemblies of smartphones, wearables, and portable electronic devices, thereby, boosting the market growth in the Asia-Pacific region.

North America Multi-Chip Module Market, By Countries (2022)

Details Countries Growth Insights

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Multi-Chip Module Market Competitive Landscape:

The multi-chip module market is highly competitive with major players providing multi-chip modules to the national and international markets. Key players are adopting several strategies in research and development (R&D), product innovation, and end-user launches to hold a strong position in multi-chip module market. Key players in the multi-chip module market include-

Recent 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.
 

Frequently Asked Question

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.