Explosive Growth In Electronic Gadgets Fuels Surge In Chiplets Market Demand Driver: Leading Transformation in the Chiplets Market in 2025

What combination of drivers is leading to accelerated growth in the chiplets market?
The burgeoning need for electronic gadgets is predicted to boost the chiplets market in the near future. Electronic gadgets are essentially tools or devices that employ electronic components and technology for designated functions. Chiplets offer a more flexible, cost-effective, and scalable approach for crafting and manufacturing these gadgets, coping with the increasing complexity and requirements of today's tech innovations. As an example, the Japan Electronics and Information Technology Industries Association, a Japan-based trade group, reported in May 2023 that the production of consumer electronics ballooned to $2,178,430 million (¥32,099 million), a rise from $1,714,724 million (¥25,268 million) in May 2022. Uswitch Limited, a financial conduct authority based in the UK, reported in February 2023 that starting in 2022, there were 71.8 million mobile connections in the UK. This represented an increase of 3.8% (or approximately 2.6 million) compared to 2021. The UK's population is predicted to hit 68.3 million people by 2025, 95% (or roughly 65 million people) of whom will own a smartphone. Therefore, the escalating demand for electronic gadgets is a major factor propelling the chiplets market.

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What is the projected compound annual growth rate (CAGR) of the chiplets market from 2025 to 2034, and what factors influence it?
In the past few years, a significant growth has been noticed in the chiplets market, with its value rising from $7.8 billion in 2024 and predicted to reach $13.71 billion in 2025. This represents a compound annual growth rate (CAGR) of 75.7%. Expansion in the semiconductor industry, growth in the healthcare sector, advancement in electronics manufacturing, stricter regulatory standards and globalization of supply chains are the major reasons for the remarkable growth observed in the historic period.

It is anticipated that the chiplets market will experience significant expansion in the coming years, reaching a net worth of $105.68 billion by 2029, with an average compound annual growth rate (CAGR) of 66.6%. The accelerated growth during the projected period is likely due to factors like the increasing biopharmaceutical sector, increased need in the food industry, sophisticated manufacturing techniques, worldwide health issues, and more stringent environmental regulations. The forecast period is expected to see trends such as heightened research and development activities, burgeoning applications in nanotechnology, numerous technological breakthroughs, advancements in cleanroom equipment, and an increase in biotechnology and life sciences research.

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What trends are poised to drive the future success of the chiplets market?
In an effort to solidify their place in the chiplets market, major industry players are turning towards the development of innovative technological solutions, such as 5G. One such example is the Intel Corporation, a technology company from the US, which, back in 2023, introduced its 4th Gen Intel Xeon Scalable processors that includes Intel vRAN Boost. Along with this, Intel unveiled the intel infrastructure power manager for its 5G core reference software, capable of delivering a 30% average run-time3 CPU power saving. The hardware and software solutions provided by Intel are aimed at ensuring 5G core networks function more effectively and efficiently, striking a balance among power efficiency, operational performance, and latency - critical for businesses and customer requirements. This technology is predicted to enable 5G core networks to run on software, fostering cloud-native agility.

What are the major segments of the chiplets market and their role in driving growth?
The chiplets market covered in this report is segmented -

1) By Processor: Field Programmable Gate Array (FPGA), Graphics Processing Unit (GPU), Central Processing Unit (CPU), Application Processing Unit (APU), Artificial Intelligence Application-Specific Integrated Circuit (AI ASIC) Coprocessor
2) By Packaging Technology: System-in-Package (SiP), Flip Chip Scale Package (FCCSP), Flip Chip Ball Grid Array (FCBGA), 2.5D Or 3D, Wafer-Level Chip Scale Package (WLCSP), Fan-Out (FO)
3) By End-User: Enterprise Electronics, Consumer Electronics, Industrial Automation, Healthcare, Automotive, Military And Aerospace, Others End-Users

Subsegments:
1) By Field Programmable Gate Array (FPGA): Configurable Logic Blocks, Digital Signal Processing (DSP) FPGAs
2) By Graphics Processing Unit (GPU): Gaming GPUs, Professional GPUs, Data Center GPUs
3) By Central Processing Unit (CPU): General-Purpose CPUs, Server CPUs, Embedded CPUs
4) By Application Processing Unit (APU): Mobile APUs, Desktop APUs
5) By Artificial Intelligence Application-Specific Integrated Circuit (AI ASIC) Coprocessor: Tensor Processing Units (TPUs), Custom AI ASICs

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Which regions are key players in the growth of the chiplets market?
Asia-Pacific was the largest region in the chiplets market in 2024. North America is expected to be the fastest-growing region in the forecast period. The regions covered in the chiplets market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Who are the key firms paving the way for growth in the chiplets market?
Major companies operating in the chiplets market report are Samsung Electronics, Taiwan Semiconductor Manufacturing Company, Intel Corporation, IBM, Qualcomm Technologies Inc., NVIDIA Corporation, Micron Technology Inc., Advanced Micro Devices Inc., ASE Technology Holding Co. Ltd., MediaTek Inc., NXP Semiconductors N.V., United Microelectronics Corporation, GlobalFoundries, Synopsys Inc., Marvell Technology Inc., Cadence Design Systems Inc., Xilinx Inc., ALPHAWAVE SEMI, Tenstorrent, Ayar Labs Inc., Kandou Bus SA, SiFive Inc., Achronix Semiconductor Corporation, Ranovus, Netronome, X-Celeprint, NHanced Semiconductors, Rain Neuromorphics, Eliyan, Chipuller

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What Is Covered In The Chiplets Global Market Report?

• Market Size Forecast: Examine the chiplets market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the chiplets market for a structured understanding.
• Key Players Overview: Analyze major players in the chiplets market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the chiplets market.
• Segment Contributions: Evaluate how different segments drive overall growth in the chiplets market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the chiplets market.
• Industry Challenges: Identify potential risks and obstacles affecting the chiplets market.
• Competitive Landscape: Review strategic developments in the chiplets market, including expansions, agreements, and new product launches.

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