loader
report-image

System in Package Market Analysis by Packaging Technology (2D IC Packaging, 2.5D IC Packaging, 3D IC Packaging), By Packaging Method (Wire Bond, Flip Chip, Fan-out Water Level Packaging), By Application (Consumer Electronics, Automotive, Telecommunication, Industrial System, Aerospace and Defense, Others) and by Region: Global Forecast, 2024 - 2033

  • PUBLISHED ON
  • 2024-01-25
  • NO OF PAGES
  • 280
  • CATEGORY
  • Information Communication & Technology

Market Overview

The System in Package market is predicted to develop at a compound annual growth rate (CAGR) of 9.92% from 2024 to 2033, when it is projected to reach USD 20.32 billion, based on an average growth pattern. The market is estimated to reach a value of USD 10.47 billion in 2024.

                                                               

SOURCE: We Market Research

System in Package (SIP) is a complex packaging approach that integrates multiple functional components, such as memory, sensors, and microprocessors, into a single, compact module. Unlike traditional systems, which place individual components on a circuit board, SIP systems integrate components into a single package, improving performance, reducing footprint, and increasing energy efficiency. SIP is ideal for applications where space is constrained, including Internet of Things (IoT) devices and wearable technologies, because it enables downsizing. This packaging technique maximizes inter-component communication to minimize power consumption and accelerate data flow. SIP fosters innovation by providing a flexible framework for building complex, multifunctional systems with higher overall reliability.

The System in Package (SIP) market is driven by a number of factors. First off, the market for compact, multifunctional electronic devices—such as wearables, smartphones, and Internet of Things devices—is expanding as a result of SIP technology's space-efficient design. SIP also improves performance by reducing signal loss, improving communication, and consolidating multiple components into a single package. Because of the growing emphasis on energy efficiency and the need for smaller form factors, SIP is becoming more and more common. SIP facilitates efficient testing and assembly, expedites time to market for electrical products, and aids market expansion by simplifying the design process.

 

Market Scope

Report Attributes

Description

Market Size in 2024

USD 10.47 Billion

Market Forecast in 2033

USD 20.32 Billion

CAGR % 2024-2033

9.92%

Base Year

2023

Historic Data

2016-2022

Forecast Period

2024-2033

Report USP

 

Production, Consumption, company share, company heatmap, company production capacity, growth factors and more

Segments Covered

By Packaging Technology, By Packaging Method, By Application and By Region

Regional Scope

North America, Europe, APAC, South America and Middle East and Africa

Country Scope

U.S.; Canada; U.K.; Germany; France; Italy; Spain; Benelux; Nordic Countries; Russia; China; India; Japan; South Korea; Australia; Indonesia; Thailand; Mexico; Brazil; Argentina; Saudi Arabia; UAE; Egypt; South Africa; Nigeria

 

System in Package Industry: Dynamics & Restrains

Market Drivers

Increased Functionality and Performance - The need for enhanced functionality and performance in electronic devices is driving the market for System in Package (SIP) solutions. SIP technology makes it possible to seamlessly combine a variety of parts into a small package, including memory, CPUs, sensors, and communication modules. By keeping a smaller form factor, devices are able to deliver enhanced functions thanks to this integration, which improves overall system performance. SIP appears as a key enabler, enabling manufacturers to match consumer expectations for increasingly powerful and feature-rich devices by effectively merging several components within a single, high-performance package.

Advancements in Packaging Technologies - The System in Package (SIP) industry is greatly impacted by ongoing advancements in packaging technology. The performance and adaptability of SIP are enhanced by innovations in 3D packaging, advanced substrate materials, and connectivity techniques. These technological developments enable the more efficient integration of multiple components into a single package, allowing for higher degrees of functionality and downsizing. Improvements in signal integrity and temperature control, together with improved manufacturing processes, increase the stability and scalability of SIP systems. SIP keeps setting the standard for packaging technology developments, satisfying the demand for compact, high-performing electronic systems across a range of uses.

Market restrains

Complexity in Design and Integration - Design and integration complexity is a challenge for the System in Package (SIP) business. Combining several components into one package necessitates specialized knowledge and may involve complex development procedures. Time-to-market is impacted by the complexity, which presents difficulties for testing, debugging, and system validation overall. Complex designs might also make mistakes more likely and call for extensive quality control procedures. This intricacy could discourage some companies or applications with low resources or knowledge, which would prevent SIP technology from being widely adopted. Reaching the full potential of SIP in providing small, multipurpose electronic solutions requires overcoming certain design and integration challenges.

We Market Research: System in Package Dashboard

Our marketing platform has an extensive dashboard that gives customers insightful information about market changes over time. A screenshot of our dashboard is provided below, and unique PDF login credentials will be sent to enable access to this informative resource.

                                           

System in Package Segmentation

Market- By Packaging Technology Analysis

By Packaging Technology, the System in Package Market is Categories into 2D IC Packaging, 2.5D IC Packaging, 3D IC Packaging. The 2D IC Packaging segment accounts for the largest share of around 46% in 2022.

                                        

The System in Package (SIP) market's 2D IC packaging subsegment is growing because of its affordability and ease of use. With its conventional flat structure, 2D IC packaging is still appealing in some applications where a simple design and reduced manufacturing costs are crucial.

The following segments are part of an in-depth analysis of the global System in Package market:

Market Segments

 

By  Packaging Method

·         Wire Bond

·         Flip Chip

·         Fan-out Water Level Packaging

By  Application

·         Consumer Electronics

·         Automotive

·         Telecommunication

·         Industrial System

·         Aerospace and Defense

·         Others

 

System in Package Industry: Regional Analysis

Asia Pacific Market Forecast

Asia Pacific dominate the System in Package Market with the highest revenue generating market with share of more than 49%. Asia-Pacific's SIP market is supported by a robust industrial foundation and growing consumer electronics demand. A culture of invention, intense competition, and dynamic technical landscapes—particularly in China, Japan, and South Korea—are the main drivers of significant growth. Despite challenges in the supply chain, the region is still a significant competitor in the global SIP market.

                                      


North America Market Statistics

North America is the second-largest market for System in Package. The robust demand for advanced electronics and a mature semiconductor sector in North America propel the SIP market, with an emphasis on innovation and technology, the region is leading the way in SIP advances, which encourages continued expansion, but it is also seeing supply chain disruptions and greater rivalry.

Europe Market Forecasts

Europe is expected to be the fastest-growing market for System in Package during the forecast period. The European SIP market is driven by the adoption of IoT devices and smart manufacturing efforts. SIP technology improvements are facilitated by favorable regulatory conditions and a strong emphasis on research and development. However, the region's ability to grow steadily is hampered by economic uncertainty.

 

Key Market Players

The System in Package Market is dominated by a few large companies, such as

·         ASE Group

·         Amkor Technology

·         ChipMOS TECHNOLOGIES INC.

·         JCET Group Co., Ltd.

·         Texas Instruments Incorporated.

·         Unisem

·         TOSHIBA ELECTRONICS EUROPE GMBH

·         UTAC

·         SAMSUNG

·         Amkor Technology

·         Intel Corporation

·         Texas Instruments Incorporated.

·         Others

Recent Developments:

November 2021 - Amkor Technology expanded its innovative packaging technology capacity with a factory located in Bac Ninh, Vietnam. This factory focused on offering innovative System in Package (SiP) assembly and test solutions to electronic and semiconductor manufacturing firms.

1.      Global System in Package Market Introduction and Market Overview

1.1.    Objectives of the Study

1.2.    Global System in Package Market Scope and Market Estimation

1.2.1. Global System in Package Overall Market Size, Revenue (US$ Mn), Market CAGR (%), Market forecast (2023 - 2033)

1.2.2. Global System in Package Market Revenue Share (%) and Growth Rate (Y-o-Y) from 2019 - 2033

1.3.    Market Segmentation

1.3.1. Component of Global System in Package Market

1.3.2. Technology of Global System in Package Market

1.3.3. Application of Global System in Package Market

1.3.4. Region of Global System in Package Market

2.      Executive Summary

2.1.    Global System in Package Market Industry Trends under COVID-19 Outbreak

2.1.1. Global COVID-19 Status Overview

2.1.2. Influence of COVID-19 Outbreak on Global System in Package Market Industry Development

2.2.    Market Dynamics

2.2.1. Drivers

2.2.2. Limitations

2.2.3. Opportunities

2.2.4. Impact Analysis of Drivers and Restraints

2.3.    Pricing Trends Analysis & Average Selling Prices (ASPs)

2.4.    Key Mergers & Acquisitions, Expansions, JVs, Funding / VCs, etc.

2.5.    Porter’s Five Forces Analysis

2.5.1. Bargaining Power of Suppliers

2.5.2. Bargaining Power of Buyers

2.5.3. Threat of Substitutes

2.5.4. Threat of New Entrants

2.5.5. Competitive Rivalry

2.6.    Value Chain / Ecosystem Analysis

2.7.    Russia-Ukraine War Impacts Analysis

2.8.    Economic Downturn Analysis

2.9.      Market Investment Opportunity Analysis (Top Investment Pockets), By Segments & By Region

3.      Global System in Package Market Estimates & Historical Trend Analysis (2019 - 2022)

4.      Global System in Package Market Estimates & Forecast Trend Analysis, by PACKAGING TECHNOLOGY

4.1.    Global System in Package Market Revenue (US$ Mn) Estimates and Forecasts, by PACKAGING TECHNOLOGY, 2019 to 2033

4.1.1. 2D IC Packaging

4.1.2. 2.5D IC Packaging

4.1.3. 3D IC Packaging

5.      Global System in Package Market Estimates & Forecast Trend Analysis, by Packaging Method

5.1.    Global System in Package Market Revenue (US$ Mn) Estimates and Forecasts, by Packaging Method, 2019 to 2033

5.1.1. Wire Bond

5.1.2. Flip Chip

5.1.3. Fan-out Water Level Packaging

6.      Global System in Package Market Estimates & Forecast Trend Analysis, by Application

6.1.    Global System in Package Market Revenue (US$ Mn) Estimates and Forecasts, by Application, 2019 to 2033

6.1.1. Consumer Electronics

6.1.2. Automotive

6.1.3. Telecommunication

6.1.4. Industrial System

6.1.5. Aerospace and Defense

6.1.6. Others

7.      Global System in Package Market Estimates & Forecast Trend Analysis, by Region

7.1.    Global System in Package Market Revenue (US$ Mn) Estimates and Forecasts, by Region, 2019 to 2033

7.1.1. North America

7.1.2. Europe

7.1.3. Asia Pacific

7.1.4. Middle East & Africa

7.1.5. South America

8.      North America System in Package Market: Estimates & Forecast Trend Analysis

8.1.    North America System in Package Market Assessments & Key Findings

8.1.1. North America System in Package Market Introduction

8.1.2. North America System in Package Market Size Estimates and Forecast (US$ Million) (2019 – 2033)

8.1.2.1.   By PACKAGING TECHNOLOGY

8.1.2.2.   By Packaging Method

8.1.2.3.   By Application

8.1.2.4.   By Country

8.1.2.4.1.     The U.S.

8.1.2.4.2.     Canada

8.1.2.4.3.     Mexico

9.      Europe System in Package Market: Estimates & Forecast Trend Analysis

9.1.    Europe System in Package Market Assessments & Key Findings

9.1.1. Europe System in Package Market Introduction

9.1.2. Europe System in Package Market Size Estimates and Forecast (US$ Million) (2019 – 2033)

9.1.2.1.   By PACKAGING TECHNOLOGY

9.1.2.2.   By Packaging Method

9.1.2.3.   By Application

9.1.2.4.        By Country

9.1.2.4.1.     Germany

9.1.2.4.2.     U.K.

9.1.2.4.3.     France

9.1.2.4.4.     Italy

9.1.2.4.5.     Spain

9.1.2.4.6.     Russia

9.1.2.4.7.     Rest of Europe

10.  Asia Pacific System in Package Market: Estimates & Forecast Trend Analysis

10.1.  Asia Pacific Market Assessments & Key Findings

10.1.1.   Asia Pacific System in Package Market Introduction

10.1.2.   Asia Pacific System in Package Market Size Estimates and Forecast (US$ Million) (2019 – 2033)

10.1.2.1.    By PACKAGING TECHNOLOGY

10.1.2.2.    By Packaging Method

10.1.2.3.    By Application

10.1.2.4.    By Country

10.1.2.4.1. China

10.1.2.4.2. Japan

10.1.2.4.3. India

10.1.2.4.4. Australia

10.1.2.4.5. South Korea

10.1.2.4.6. ASEAN

10.1.2.4.7. Rest of Asia Pacific

11.  Middle East & Africa System in Package Market: Estimates & Forecast Trend Analysis

11.1.  Middle East & Africa Market Assessments & Key Findings

11.1.1.   Middle East & Africa System in Package Market Introduction

11.1.2.   Middle East & Africa System in Package Market Size Estimates and Forecast (US$ Million) (2019 – 2033)

11.1.2.1.    By PACKAGING TECHNOLOGY

11.1.2.2.    By Packaging Method

11.1.2.3.    By Application

11.1.2.4.    By Country

11.1.2.4.1. U.A.E.

11.1.2.4.2. Saudi Arabia

11.1.2.4.3. Egypt

11.1.2.4.4. South Africa

11.1.2.4.5. Rest of Middle East & Africa

12.  South America System in Package Market: Estimates & Forecast Trend Analysis

12.1.  South America Market Assessments & Key Findings

12.1.1.   South America System in Package Market Introduction

12.1.2.   South America System in Package Market Size Estimates and Forecast (US$ Million) (2019 – 2033)

12.1.2.1.    By PACKAGING TECHNOLOGY

12.1.2.2.    By Packaging Method

12.1.2.3.    By Application

12.1.2.4.    By Country

12.1.2.4.1. Brazil

12.1.2.4.2. Argentina

12.1.2.4.3. Colombia

12.1.2.4.4. Rest of South America

13.  Competition Landscape

13.1.  Global System in Package Market Competition Matrix & Benchmarking, by Leading Players / Innovators / Emerging Players / New Entrants

13.2.  Global System in Package Market Competition White Space Analysis, By Application

13.3.  Global System in Package Market Competition Heat Map Analysis, By Application

13.4.  Global System in Package Market Concentration & Company Market Shares (%) Analysis, 2022

14.  Company Profiles

14.1.                     ASE Group

14.1.1.   Company Overview & Key Stats

14.1.2.   Financial Performance & KPIs

14.1.3.   Product Portfolio

14.1.4.   Business Strategy & Recent Developments

* Similar details would be provided for all the players mentioned below 

14.2.      Amkor Technology

14.3.      Chipmos Technologies Inc.

14.4.      JCET Group Co., Ltd.

14.5.      Texas Instruments Incorporated.

14.6.      Unisem

14.7.      TOSHIBA ELECTRONICS EUROPE GMBH

14.8.      UTAC

14.9.      SAMSUNG

14.10.  Amkor Technology

14.11.  Intel Corporation

14.12.  Texas Instruments Incorporated.

14.13.  Others

15.  Research Methodology

15.1.  External Transportations / Databases

15.2.  Internal Proprietary Database

15.3.  Primary Research

15.4.  Secondary Research

15.5.  Assumptions

15.6.  Limitations

15.7.  Report FAQs

16.  Research Findings & Conclusion

Quality Assurance Process

  1. We Market Research’s Quality Assurance program strives to deliver superior value to our clients.

We Market Research senior executive is assigned to each consulting engagement and works closely with the project team to deliver as per the clients expectations.

Market Research Process




We Market Research monitors 3 important attributes during the QA process- Cost, Schedule & Quality. We believe them as a critical benchmark in achieving a project’s success.

To mitigate risks that can impact project success, we deploy the follow project delivery best practices:
  • Project kickoff meeting with client
  • Conduct frequent client communications
  • Form project steering committee
  • Assign a senior SR executive as QA Executive
  • Conduct internal editorial & quality reviews of project deliverables
  • Certify project staff in SR methodologies & standards
  • Monitor client satisfaction
  • Monitor realized value post-project

Case Study- Automotive Sector

One of the key manufacturers of automotive had plans to invest in electric utility vehicles. The electric cars and associated markets being a of evolving nature, the automotive client approached We Market Research for a detailed insight on the market forecasts. The client specifically asked for competitive analysis, regulatory framework, regional prospects studied under the influence of drivers, challenges, opportunities, and pricing in terms of revenue and sales (million units).

Solution

The overall study was executed in three stages, intending to help the client meet its objective of precisely understanding the entire market before deciding on an investment. At first, secondary research was conducted considering political, economic, social, and technological parameters to get a gist of the various aspects of the market. This stage of the study concluded with the derivation of drivers, opportunities, and challenges. It also laid substantial emphasis on understanding and collecting data not only on a global scale but also on the regional and country levels. Data Extraction through Primary Research

The second stage involved primary research in which several market players and automotive parts suppliers were contacted to study their viewpoint concerning the development of their market and production capacity, clientele, and product line. This stage concluded in a brief understanding of the competitive ecosystem and also glanced through the strategies and pricing of the companies profiled.

Market Estimates and Forecast

In the final stage of the study, market forecasts for the electric utility were derived using multiple market engineering approaches. This data helped the client to get an overview of the market and accelerate the process of investment.

Case Study- ICT Sector

Business process outsourcing, being one of the lucrative markets from both supply- and demand- side, has appealed to various companies. One of the prominent corporations based out of Japan approached us with their requirements regarding the scope of the procurement outsourcing market for around 50 countries. Additionally, the client also sought key players operating in the market and their revenue breakdown in terms of region and application.


Business Solution

An exhaustive market study was conducted based on primary and secondary research that involved factors such as labor costs in various countries, skilled and technical labors, manufacturing scenario, and their respective contributions in the global GDP. A comparative study of the market was conducted from both supply- and demand side, with the supply-side comprising of notable companies, such as GEP, Accenture, and others, that provide these services. On the other hand, large manufacturing companies from them demand-side were considered that opt for these services.


Conclusion

The report aided the client in understanding the market trends, including country-level business scenarios, consumer behavior, and trends in 50 countries. The report also provided financial insights of crucial players and detailed market estimations and forecasts till 2033.


Frequently Asked Questions

What is the market size of System in Package Market in 2024?

System in Package Market was valued at USD 10.47 Billion in 2024.

What is the growth rate for the System in Package Market?

System in Package Market size will increase at approximate CAGR of 9.92% during the forecasted period.

Which are the top companies operating within the market?

Major companies operating within the System in Package Market are ASE Group, Amkor Technology, Chipmos Technologies Inc., JCET Group Co., Ltd, Texas Instruments Incorporated, Unisem, TOSHIBA ELECTRONICS EUROPE GMBH, UTAC, SAMSUNG, Amkor Technology, Intel Corporation, Texas Instruments Incorporated. and Other.

Which region dominates the System in Package Market?

Asia Pacific dominates the market with an active share of 49%.

CHOOSE LICENSE TYPE
QLOUD
Pricing

Select a license type that suits your business needs

Single User Access

US $3750

Only Three Thousand Seven Hundred Fifty US dollar

  • 1 User access
  • 15% Additional Free Customization
  • Free Unlimited post-sale support
  • 100% Service Guarantee until achievement of ROI
Multi User Cost

US $4750

Only Four Thousand Seven Hundred Fifty US dollar

  • 5 Users access
  • 25% Additional Free Customization
  • Access Report summaries for Free
  • Guaranteed service
  • Dedicated Account Manager
  • Discount of 20% on next purchase
  • Get personalized market brief from Lead Author
  • Printing of Report permitted
  • Discount of 20% on next purchase
  • 100% Service Guarantee until achievement of ROI
Enterprise User Cost

US $5750

Only Five Thousand Seven Hundred Fifty US dollar

  • Unlimited User Access
  • 30% Additional Free Customization
  • Exclusive Previews to latest or upcoming reports
  • Discount of 30% on next purchase
  • 100% Service Guarantee until achievement of ROI