The global advanced packaging market was valued at USD 39.60 billion in 2024 and is projected to reach USD 55.00 billion by 2030, exhibiting a Compound Annual Growth Rate (CAGR) of 5.7% from 2025 to 2030. This growth is significantly fueled by the increasing demand for miniaturized and high-performance electronic devices.
Furthermore, the accelerating adoption of Artificial Intelligence (AI), Internet of Things (IoT), and 5G technologies is spurring innovation in semiconductor packaging solutions. The market is primarily driven by the continuous push for more compact, high-performance electronic devices across various sectors, from smartphones and tablets to wearables and IoT sensors. Traditional packaging methods are no longer sufficient to meet these evolving demands. Advanced packaging techniques, such as 2.5D/3D IC packaging, System-in-Package (SiP), and fan-out wafer-level packaging (FOWLP), enable greater component density, superior electrical performance, and reduced power consumption, all while minimizing physical space.
The proliferation of AI, 5G, and High-Performance Computing (HPC) applications is also a crucial driver for market expansion. These technologies necessitate powerful chips capable of rapid data processing and efficient thermal management. Advanced packaging facilitates the integration of multiple chips into a single package, substantially reducing signal delay and power consumption. For instance, chiplet architectures in data centers heavily rely on advanced packaging to efficiently interconnect dies, thereby supporting the scalability and performance enhancements vital for AI and HPC workloads.
Key Market Dynamics & Insights:
- Asia Pacific Dominance: The Asia Pacific advanced packaging market held the largest revenue share, exceeding 43.0% in 2024, and is anticipated to achieve the fastest CAGR of 6.2% over the forecast period. This region boasts the world's highest concentration of semiconductor manufacturing facilities, with industry giants like Taiwan Semiconductor Manufacturing Company (TSMC), Samsung Electronics, and China's Semiconductor Manufacturing International Corporation (SMIC) continuously expanding their advanced packaging capabilities.
- Flip Chip Packaging Leads by Type: The flip chip segment recorded the largest market revenue share, over 38.0% in 2024. Flip-chip packaging involves mounting the semiconductor die face-down onto the substrate using small solder bumps, enabling higher performance and smaller footprints.
- Consumer Electronics as Leading Application: The consumer electronics segment accounted for the largest market share, over 51.0% in 2024. This segment encompasses a wide array of devices, including smartphones, tablets, wearables, and laptops, all of which require compact, high-performance, and energy-efficient semiconductor packages.
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Market Size & Forecast
- 2024 Market Size: USD 39.60 Billion
- 2030 Projected Market Size: USD 55.00 Billion
- CAGR (2025-2030): 5.7%
- Asia Pacific: Largest market in 2024
Key Companies & Market Share Insights
The advanced packaging market is highly competitive, driven by continuous technological advancements and the increasing demand for smaller, more powerful electronic devices, along with a shift towards heterogeneous integration. Leading companies such as ASE Technology, Amkor Technology, Intel, and TSMC maintain their market dominance through ongoing innovation, strategic partnerships, and significant investments in research and development to create cutting-edge solutions. The entry of new players and startups with specialized capabilities is further intensifying competition. Concurrently, the market is observing a trend of consolidation as companies aim to enhance their technological prowess and expand their global footprint.
Key Players
- Amkor Technology Inc.
- Advanced Semiconductor Engineering (ASE)
- Taiwan Semiconductor Manufacturing Company (TSMC)
- Intel
- Samsung Electronics
- JCET Group
- ASMPT SMT Solutions
- IPC International, Inc.
- SEMICON
- Yole Group
- Prodrive Technologies B.V.
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Conclusion
The global advanced packaging market is experiencing significant expansion, propelled by the increasing demand for smaller, higher-performing electronic devices. The widespread adoption of AI, IoT, and 5G technologies is also driving innovation in semiconductor packaging. Asia Pacific leads the market, with flip-chip technology and consumer electronics representing key segments. The competitive landscape is marked by intense rivalry, continuous innovation, and strategic collaborations among major players and emerging startups.
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