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Field Programmable Gate Array Market is Estimated to Witness High Growth Owing to Opportunity for Increased Functionality and Customization

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Poonam
Field Programmable Gate Array Market is Estimated to Witness High Growth Owing to Opportunity for Increased Functionality and Customization

Field Programmable Gate Array (FPGA) are integrated circuits that can be configured post production by the customer or designer after manufacturing - also known as field-programmable. FPGAs allow functions and cores to be added, removed or modified by merely reprogramming the device. This makes them highly customizable and their functionality can be changed based on requirements. FPGA products consist of logic blocks interconnected via programmable interconnects and have configurable input/output blocks. Due to their reprogrammability, FPGAs can be used in a variety of industries like aerospace, defense, automotive, consumer electronics and more.

The global Field Programmable Gate Array Market is estimated to be valued at US$ 8251.88 Mn in 2023 and is expected to exhibit a CAGR of 9.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The opportunity for increased functionality and customization offered by FPGAs is estimated to drive high growth of the market over the forecast period. As FPGA functionalities can be changed post manufacturing, it allows customers to modify and upgrade them based on evolving requirements. This customizable and reprogrammable nature of FPGAs makes them highly functional and suitable for a wide range of applications. Their programmable feature provides customers the flexibility and agility to adapt designs based on changing technological landscape. This in turn is projected to boost the adoption of FPGAs significantly over the next few years.

Porter’s Analysis

Threat of new entrants: The field programmable gate array market requires high initial investments in R&D which poses as a barrier for new companies. The established players have significant economies of scale in manufacturing and supply chain management providing them an edge over new entrants.

Bargaining power of buyers: Buyers have moderate to high bargaining power in this market due to the presence of several manufacturers producing standardized FPGA products. Also, the increased adoption of FPGA in diverse applications allows buyers to negotiate on better prices.

Bargaining power of suppliers: The suppliers of programmable logic fabric, memory, and other components have low to moderate power. This is due to the availability of alternative component suppliers in the market.

Threat of new substitutes: There exist no direct substitutes for FPGAs. However, alternatives like application-specific integrated circuits (ASICs) and complex programmable logic devices (CPLDs) provide competition based on cost and usability.

Competitive rivalry: The field programmable gate array market comprises numerous global as well as regional players. Intense competition exists based on product performance, pricing, features, and customer support.

SWOT Analysis

Strength: FPGA offers high flexibility, reprogrammability, and time-to-market advantages. The devices can be reconfigured any number of times to implement new designs.

Weakness: FPGA designs demand high upfront costs and expertise. Also, FPGAs have lower performance and density than ASICs. Manufacturing defects and errors could impact the overall device performance.

Opportunity: Rising demand for communication infrastructure with 5G rollout. Growing adoption of AI, machine learning, and IoT applications that require high computational power. Increasing R&D investments in defense, aerospace, and HPC segments.

Threats: Commoditization of simple FPGA devices poses pricing pressure. Trade restrictions and geopolitical tensions could disrupt the supply chain. Migration towards ASICs and structured ASICs for standardized applications.

Key Takeaways

The global Field Programmable Gate Array Market Share is expected to witness high growth supported by increasing FPGA adoption in data centers, networking, and computing applications.

Regional analysis: The Asia Pacific region holds the major share in the global FPGA market and is expected to grow at over 10% CAGR during the forecast period. China dominates the APAC FPGA market driven by the presence of semiconductor foundries and electronics manufacturing clusters. India, Japan and Southeast Asian countries also contribute to regional growth through increased focus on telecom infrastructure development and industrial automation initiatives.

Key players operating in the field programmable gate array market are Xilinx, Intel, Microchip Technology, Lattice Semiconductor, QuickLogic, Efinix.

For more insights, read- https://www.newsanalyticspro.com/field-programmable-gate-array-market-trends-size-and-share-analysis/

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