Advanced Packaging Market Analysis: Growth, Size, Share & Future Trends (2024-2029)
The report covers a comprehensive analysis segmented by Type (Flip Chip, Embedded Die, Fi-WLP, Fo-WLP, 2.5D/3D), By End User (Consumer Electronics, Automotive, Industrial, Healthcare, Aerospace & Defense, Others), By Geography (North America, South America, Asia Pacific, Europe, The Middle East, Africa).
Advanced Packaging Market Snapshot
Advanced Packaging Market Overview
The advanced packaging industry is projected to reach $58.32 billion in 2029 from an estimated $42.13 billion in 2024. Between 2024 and 2029, the global advanced packaging market is expected to grow at a compound annual growth rate (CAGR) of 6.72%.
The demand for advanced packaging is experiencing rapid growth due to the increasing requirement for electronic products across various industries to possess enhanced functionality and superior performance. This includes a variety of innovative packaging options created to meet the changing demands of end users and semiconductor makers. The use of 3D packaging technologies, heterogeneous integration, and advanced interconnect solutions like fan-out wafer-level packaging (FOWLP) and through-silicon vias (TSVs) are some of the major developments influencing the advanced packaging market. These technologies support applications in artificial intelligence, 5G connectivity, the Internet of Things (IoT), automotive electronics, and healthcare devices by enabling higher integration levels, better performance, and smaller form factors.
Additionally, the market for advanced packaging is defined by rising R&D expenditures aimed at fostering innovation and resolving technical issues with quality control, dependability, and thermal management. Businesses are concentrating on creating innovative packaging solutions that provide increased efficacy, affordability, and environmental sustainability. Asia Pacific leads the global advanced packaging industry because countries like China, South Korea, and Taiwan have major semiconductor companies. Also, sectors like consumer electronics, automotive, and telecommunications are growing fast in this region. In addition to Asia Pacific, providers can find good prospects in North America and Europe.
Advanced Packaging Market Coverage
| Historical & Forecast Period | 2018-2029 |
| Base Year | 2023 |
| Forecast Period | 2024-2029 |
| Units | Billion US$ |
| Segments | Type, End User |
| Geographies | North America, South America, Asia Pacific, Europe, The Middle East, Africa |
| Key Vendors |
Amkor Technology, Inc., TSMC, Ltd., ASE Technology Holding Co. Ltd.,  Intel Corp., Jiangsu Changdian Technology Co., Ltd. |
Key Geographies of Advanced Packaging Market, 2023
Porter’s 5 Forces Analysis of Advanced Packaging Market
Advanced Packaging Market Trends
Substantial changes are happening in the advanced packaging market because of better technology, and people wanting electronic gadgets to work better and use less power. The move toward heterogeneous integration the blending of various semiconductor technologies into a single package is one noteworthy trend. This methodology facilitates increased functionality, better performance, and smaller form factors, meeting the needs of contemporary electronic applications like 5G, AI, and the Internet of Things (IoT).
Furthermore, the development of 3D packaging technologies such as stacked die, fan-out wafer-level packaging (FOWLP), and through-silicon vias (TSVs) has been crucial in addressing the need for gadgets that are quicker, more compact, and use less power. These technologies are being used by a variety of industrial sectors because of their benefits, which include better signal integrity, higher interconnect density, and improved thermal management. The increasing integration of electronic systems in cars for advanced driver-assistance systems (ADAS), electrification, and autonomous driving technologies is another noteworthy trend that is driving the focus on innovative packaging solutions for automotive electronics. This trend emphasizes the value of strong, dependable, and high-performing packaging solutions that can resist challenging operating conditions and strict safety regulations.
Additionally, there is growing market interest in sophisticated packaging technologies for heterogeneous integration in healthcare applications, especially in wearables and medical devices where high dependability, low power consumption, and compact form factors are critical. Given the circumstances, the market for advanced packaging is anticipated to keep growing due to continuous developments, rising demand for high-end electronics, and changing industry standards for improved functionality, performance, and integration capabilities.
Advanced Packaging Market Driving Factors
The Advanced Packaging market is mostly shaped by several important aspects that influence its development and expansion. As semiconductor makers work to create packaging solutions that enable increasing levels of integration, performance, and efficiency in electronic devices, technological improvements are essential. This covers advancements in sophisticated interconnect technologies including fan-out wafer-level packaging (FOWLP) and through-silicon vias (TSVs), as well as heterogeneous integration and 3D packaging. The market for advanced packaging is mostly driven by the growing need for shrinking and the pursuit of smaller form factors in electronic products. Both sectors and consumers are looking for lightweight, compact products with more functionality; new packaging technologies make this possible by allowing several components to be integrated into a smaller package.
Furthermore, the use of advanced packaging solutions is being propelled by the growth of applications such as artificial intelligence, 5G connectivity, the Internet of Things (IoT), automotive electronics, and healthcare devices. Packaging technologies that can fulfill the demanding requirements of various operating conditions and give excellent performance, reliability, and energy efficiency are needed for these applications. The automotive sector’s shift towards electrification, autonomous driving, and advanced driver-assistance systems (ADAS) is also increasing the need for durable, high-performance packaging solutions that can withstand challenging circumstances and provide dependable performance for prolonged periods of time. The advanced packaging market is growing due to industry-specific demands, miniaturization requirements, expanding application areas, and technical innovation.
Advanced Packaging Market Challenges
Numerous obstacles hinder the advanced packaging market’s expansion and advancement. The complexity and expense of creating and adopting innovative packaging technologies present a major obstacle. Due to the inflated costs associated with specialized equipment and procedures, as well as the necessity for research and the development of novel packaging concepts, small and startup enterprises may find it difficult to break into the market. The requirement for standardization and interoperability in innovative packaging technology presents another difficulty. It becomes more important to provide compatibility and seamless integration across many platforms and applications with diverse technologies, including improved interconnects, heterogeneous integration, and 3D packaging. If there are no set standards, it could make the market messy and stop many people from using advanced packaging.
The market for sophisticated packaging also has issues with dependability and quality control. It is crucial to guarantee the durability and dependability of modern packaging solutions as electronic gadgets grow more intricate and compact. To achieve the demanding performance requirements of a variety of applications, technological issues posed by elements like temperature management, connection integrity, and environmental durability must be resolved. Furthermore, limitations in the supply chain, such as shortages of essential materials and components, can cause production delays and restrict the expansion of the market. Considering the dynamics and uncertainties of the global market, maintaining a robust and reliable supply chain is crucial to satisfying the growing demand for sophisticated packaging solutions. Given the circumstances, overcoming these obstacles calls for cooperation, creativity, and calculated expenditures throughout the advanced packaging ecosystem.
Advanced Packaging Market – Key Industry News
- In January 2024, TSMC, Ltd. and ASE Technology Holdings, Co., have announced a partnership to establish additional fab capacities for advanced packaging solutions.
- In September 2023, Faraday Technology Corp., a leading ASIC design service and IP provider, announced the launch of its 2.5D/3D advanced package service. With a unique interposer manufacturing service for chiplets connection and close collaboration with top-tier foundry and OSAT suppliers.
- In September 2023, Intel Corp. revealed a new type of material called glass substrate that will be used in advanced packaging technology. This innovation will help make computer chips smaller and more powerful, allowing for better performance in applications that rely on handling enormous amounts of data.
Advanced Packaging Market Competitive Landscape
The participants in the global advanced packaging industry are always developing their strategies to preserve a competitive advantage. Companies primarily use acquisitions, R&D, partnerships, and technological launches. Several important entities in the advanced packaging market include Amkor Technology, Inc., TSMC, Ltd., ASE Technology Holding Co., Ltd., Intel Corp., Jiangsu Changdian Technology Co., Ltd., and others.
Key players in the Advanced Packaging Market are actively innovating to address the rising need for compact, high-speed, and efficient electronic devices. They frequently employ strategies like forming partnerships, collaborations and engaging in mergers & acquisitions to bolster their technological prowess, enrich product offerings, and fortify market influence. Moreover, the sector is experiencing the entry of fresh contenders and startups leveraging inventive approaches like fan-out wafer-level packaging (FOWLP) and system-in-package (SiP) to revolutionize conventional packaging techniques, thereby heightening competitive pressures within the market.
Advanced Packaging Market Company Share Analysis, 2023 (%)
Advanced Packaging Market – Key Companies
Reason to Buy from us
Table of Contents
| 1. Introduction |
|---|
| 1.1. Research Methodology |
| 1.2. Scope of the Study |
| 2. Market Overview / Executive Summary |
| 2.1. Global Advanced Packaging Market (2018 – 2022) |
| 2.2. Global Advanced Packaging Market (2023 – 2029) |
| 3. Market Segmentation |
| 3.1. Global Advanced Packaging Market by Type |
| 3.1.1. Flip Chip |
| 3.1.2. Embedded Die |
| 3.1.3. Fi-WLP |
| 3.1.4. Fo-WLP |
| 3.1.5. 2.5D/3D |
| 3.2. Global Advanced Packaging Market by End User |
| 3.2.1. Consumer Electronics |
| 3.2.2. Automotive |
| 3.2.3. Industrial |
| 3.2.4. Healthcare |
| 3.2.5. Aerospace & Defense |
| 3.2.6. Others |
| 4. Regional Segmentation |
| 4.1. North America |
| 4.1.1. The U.S |
| 4.1.2. Canada |
| 4.1.3. Mexico |
| 4.2. South America |
| 4.2.1. Brazil |
| 4.2.2. Argentina |
| 4.2.3. Colombia |
| 4.2.4. Chile |
| 4.2.5. Rest of South America |
| 4.3. Asia Pacific |
| 4.3.1. China |
| 4.3.2. India |
| 4.3.3. Japan |
| 4.3.4. South Korea |
| 4.3.5. Rest of Asia Pacific |
| 4.4. Europe |
| 4.4.1. UK |
| 4.4.2. Germany |
| 4.4.3. Italy |
| 4.4.4. France |
| 4.4.5. Spain |
| 4.4.6. Rest of Europe |
| 4.5. The Middle East |
| 4.5.1. Turkey |
| 4.5.2. UAE |
| 4.5.3. Saudi Arabia |
| 4.5.4. Rest of the Middle East |
| 4.6. Africa |
| 4.6.1. Egypt |
| 4.6.2. South Africa |
| 4.6.3. Rest of Africa |
| 5. Value Chain Analysis of the Global Advanced Packaging Market |
| 6. Porter Five Forces Analysis |
| 6.1. Threats of New Entrants |
| 6.2. Threats of Substitutes |
| 6.3. Bargaining Power of Buyers |
| 6.4. Bargaining Power of Suppliers |
| 6.5. Competition in the Industry |
| 7. Trends, Drivers and Challenges Analysis |
| 7.1. Market Trends |
| 7.1.1. Market Trend 1 |
| 7.1.2. Market Trend 2 |
| 7.1.3. Market Trend 3 |
| 7.1.4. Market Trend 4 |
| 7.1.5. Market Trend 5 |
| 7.2. Market Drivers |
| 7.2.1. Market Driver 1 |
| 7.2.2. Market Driver 2 |
| 7.2.3. Market Driver 3 |
| 7.2.4. Market Driver 4 |
| 7.2.5. Market Driver 5 |
| 7.3. Market Challenges |
| 7.3.1. Market Challenge 1 |
| 7.3.2. Market Challenge 2 |
| 7.3.3. Market Challenge 3 |
| 7.3.4. Market Challenge 4 |
| 7.3.5. Market Challenge 5 |
| 8. Regulatory Landscape |
| 9. Competitive Landscape |
| 9.1. Amkor Technology, Inc. |
| 9.2. Taiwan Semiconductor Manufacturing Co., Ltd. |
| 9.3. ASE Technology Holding Co., Ltd. |
| 9.4. Intel Corp. |
| 9.5. Jiangsu Changdian Technology Co., Ltd. |
| 9.6. Company 6 |
| 9.7. Company 7 |
| 9.8. Company 8 |
| 9.9. Company 9 |
| 9.10. Company 10 |
Advanced Packaging Market – Frequently Asked Questions (FAQs)
What is the current size of the global advanced packaging market?
The market size for the global advanced packaging market in 2024 is $42.13 Bn.
Who are the major vendors in the global advanced packaging market?
The major vendors in the global advanced packaging market are Amkor Technology, Inc., TSMC, Ltd., ASE Technology Holding Co., Ltd., Intel Corp., Jiangsu Changdian Technology Co., Ltd.
Which segments are covered under the global advanced packaging market segments analysis?
This report offers in-depth insights into each type, end user.