Field Programmable Gate Array (FPGA) Market

Global Field Programmable Gate Array Market:

The global field programmable gate array (FPGA) market size reached US$ 12.4 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 24.6 Billion by 2032, exhibiting a growth rate (CAGR) of 7.8% during 2024-2032. The growing integration of artificial intelligence (AI) and machine learning (ML), increasing complexity of electronics systems, and rising need for energy efficient and cost saving solutions represent some of the key factors propelling the market growth.

Field Programmable Gate Array Market Analysis:

• Major Market Drivers: The growing demand for high-performance computing capabilities, increasing adoption across the telecommunications, aerospace, and automotive sectors, and rising demand applications like data centers are propelling the industry growth. As electronic systems become more complex, FPGAs provide a versatile solution to integrate multiple functions into a single device. This simplifies system design, reduces component count, and lowers system cost, thereby stimulating the field programmable gate array market demand.
• Key Market Trends: Increasing product demand in data centers, expanding adoption of automotive electronics, growing role in 5G infrastructures, etc., are anticipated to proliferate the market growth. Moreover, FPGAs are increasingly deployed in edge computing devices to enable real-time processing and analytics. They are used in various edge applications such as industrial automation, smart surveillance, and IoT gateways, where low latency and high performance are essential, thereby propelling the industry demand.
• Competitive Landscape: Some of the leading field programmable gate array market companies are Achronix Semiconductor, Cypress Semiconductor Corporation (Infineon Technologies AG), Efinix Inc., EnSilica Limited, Flex Logix Technologies Inc., Gidel Inc., Intel Corporation, Lattice Semiconductor Corporation, Microsemi Corporation (Microchip Technology Inc.), Quicklogic Corporation, Taiwan Semiconductor Manufacturing Company, and Xilinx Inc., among many others.
• Geographical Trends: According to the report, Asia Pacific accounted for the largest market share. The region is a major hub for IoT device manufacturing and deployment across various industries, including automotive, healthcare, agriculture, etc. FPGAs provide the flexibility and reconfigurability required for IoT devices to adapt to changing requirements, thereby driving their adoption in the region.
• Challenges and Opportunities: Complexity of design, market pressure, rising cost, and high-power consumption needs are some of the key challenges that the market is facing. However, FPGAs are increasingly being used to accelerate artificial intelligence (AI) and machine learning (ML) workloads, offering high performance and energy efficiency. The growing demand for AI-enabled devices presents significant opportunities for FPGA vendors to provide specialized solutions for inference acceleration, neural network processing, and edge computing.

Field Programmable Gate Array Market Trends:

Growing Demand for Artificial Intelligence (AI) And Machine Learning (ML) solutions

FPGAs are increasingly utilized to accelerate AI and ML workloads. These workloads often involve large-scale matrix operations and parallel processing, which are well-suited to the parallel architecture of FPGAs. FPGAs can be programmed to perform specialized tasks such as matrix multiplication, convolutional neural network (CNN) operations, and inference acceleration, leading to significant performance gains compared to traditional CPUs or GPUs. For instance, in May 2021, Lattice Semiconductor, a low-power programmable leader, upgraded its sensAI solution stack to accelerate AI/ML application development on low-power Lattice FPGAs. New features include support for the Lattice Propel design environment for embedded processor-based development and the TensorFlow Lite deep-learning framework for on-device inference. The latest version incorporates the Lattice sensAI Studio design environment, which enables end-to-end ML model training, validation, and compilation. With sensAI 4.0, developers may utilize a simple drag-and-drop interface to create FPGA designs with a RISC-V CPU and a CNN acceleration engine, allowing for the quick and easy implementation of ML applications on power-constrained edge devices. In addition, FPGAs provide high computational efficiency with lower power consumption compared to CPUs and GPUs, especially for specific AI and ML tasks. This energy efficiency is critical for edge devices and battery-powered applications where power constraints are significant. FPGAs enable energy-efficient AI processing without compromising performance, making them attractive for applications such as IoT devices, wearables, and mobile devices. For instance, in May 2024, Lattice Semiconductor, the low-power programmable pioneer, announced that it would present its latest FPGA technology at the Embedded Vision Summit 2024. The Lattice booth will showcase industry-leading low power, tiny form factor FPGAs and application-specific solutions that enable powerful embedded vision, artificial intelligence, and connectivity capabilities. Lattice, along with a strong lineup of innovation partners, will demonstrate its most recent FPGA breakthroughs, allowing engineers to future-proof their designs for automotive, industrial, and security applications at the edge. These factors are positively influencing the field programmable gate array market forecast.

Increasing Complexity of Electronics Systems

The complexity of electronic systems is growing as they become more feature-rich and multifunctional. FPGAs offer unparalleled flexibility in design compared to traditional fixed-function integrated circuits. Designers can implement complex logic functions, signal processing algorithms, and interfaces within a single FPGA chip, reducing the need for multiple discrete components and simplifying system integration. For instance, in March 2024, Achronix Semiconductor Corporation, a leader in high-performance FPGAs and embedded FPGA (eFPGA) IP, and Bluespec, Inc., an industry leader in RISC-V tools and silicon IP, introduced a range of Linux-capable RISC-V soft processors for the Achronix Speedster 7t FPGA family. Bluespec's RISC-V processors can integrate into the Achronix 2D network-on-chip (NoC) architecture, simplifying integration and allowing engineers to simply add scalable processing to Achronix FPGA designs. Additionally, as electronic systems become more specialized and application-specific, there's a growing demand for customized solutions. FPGAs allow designers to tailor the hardware to specific application requirements by implementing custom logic, interfaces, and processing algorithms. This customization capability enables the development of highly optimized and efficient electronic systems for various industries, including aerospace, automotive, telecommunications, and healthcare. For instance, in March 2024, Intel launched its latest venture, named Altera, a standalone FPGA. Altera's FPGA allows customization that further allows the integration of upcoming standards such as PCl Express, CXL, ethernet, and 6G wireless. These factors are thereby bolstering the field programmable gate array market revenue.

Rising Deployment of Data Centers

FPGAs are used for hardware acceleration in data centers to offload compute-intensive tasks from CPUs and GPUs. This includes tasks like AI integration, machine learning (ML) training, data compression, encryption, and video transcoding. By leveraging FPGA-based accelerators, data centers can achieve significant performance improvements and reduce processing times for these workloads. For instance, in March 2023, NTT established six data centers in India over a period of three months, with three more on the way. According to NTT India, about 70% of the similar capacity in these data centers has already been reserved. In addition, data centers consume massive amounts of energy and energy efficiency is a critical concern for operators. FPGAs offer higher computational efficiency and lower power consumption compared to CPUs and GPUs for certain workloads. By using FPGAs to offload compute-intensive tasks, data centers can reduce overall power consumption and operating costs while maintaining high performance. For instance, in November 2021, Xilinx launched Alveo U55C, FPGA based accelerator card in order to target workloads in data centers. These factors are contributing to the field programmable gate array market share.

Field Programmable Gate Array Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global field programmable gate array (FPGA) market report, along with forecasts at the global, regional, and country levels from 2024-2032. Our report has categorized the market based on architecture, configuration, and end use industry.

Breakup by Architecture:

• SRAM-Based FPGA
• Anti-Fuse Based FPGA
• Flash-Based FPGA
   

SRAM-based FPGA dominate the market

The report has provided a detailed breakup and analysis of the market based on the architecture. This includes SRAM-based FPGA, anti-fuse based FPGA, and flash-based FPGA. According to the report, SRAM-based FPGA represented the largest segment.

SRAM-based FPGA is highly flexible and allows designers to configure the device according to their specific requirements. Moreover, they offer high-performance capabilities, as they use static random-access memory (SRAM) cells for configuration storage. SRAM cells can be quickly and easily reprogrammed, which allows for the efficient implementation of complex logic functions, memory structures, and high-speed interfaces. They also provide the ability to reprogram the device on the fly and enable designers to perform design iterations and debugging at the hardware level. The flexibility of SRAM-based FPGAs also allows for faster time-to-market. With SRAM-based FPGAs, designers can implement and validate their designs without the need for custom ASIC development or lengthy fabrication processes. For instance, in November 2023, GOWIN Semiconductor launched ARORA V SRAM FPGAs, that promises to boost 30% in performance along with 60% drop in power consumption as compared to previous series.

Breakup by Configuration:

• Low-range FPGA
• Mid-range FPGA
• High-range FPGA
   

Low-range FPGA holds the biggest market share

A detailed breakup and analysis of the market based on the configuration has also been provided in the report. This includes low-range FPGA, mid-range FPGA, and high-range FPGA. According to the report, low-range FPGA accounted for the largest market share as it is more cost-effective compared to its higher-end counterparts. It is often more affordable and can offer a balance between price and functionality, which makes it suitable for cost-sensitive applications.

According to the field programmable market overview, low-range FPGA consumes less power as compared to high-end FPGA. This lower power consumption can be advantageous in applications wherein power efficiency is critical, such as battery-powered devices or embedded systems. Moreover, it has simpler architecture and fewer features compared to high-end FPGAs, which can make it easier to understand, program, and integrate into designs, especially for beginners or projects with less complex requirements. It is also available in smaller form factors and makes them suitable for space-constrained applications. For instance, in October 2023, QuickLogic Corporation and YorChip partnered to develop a line of low cost and low power FPGA chiplets that can be used in various application including edge IoT and AI/ML.

Breakup by End Use Industry:

• IT and Telecommunication
• Consumer Electronics
• Automotive
• Industrial
• Military and Aerospace
• Others
   

IT and telecommunication accounts for the majority of the market share

A detailed breakup and analysis of the market based on the end use industry has also been provided in the report. This includes IT and telecommunication, consumer electronics, automotive, industrial, military and aerospace, and others. According to the report, IT and telecommunication accounted for the largest market share.

As per the field programmable gate array market outlook, FPGAs offer a high degree of flexibility in hardware design and functionality. They can be reprogrammed or reconfigured after manufacturing, allowing for quick prototyping, iterative design changes, and customization to meet specific application requirements. This flexibility is particularly valuable in the IT and telecommunication industry that experiences rapid technological advancements and evolving standards. FPGAs also provide parallel processing capabilities that can be tailored to match the requirements of specific applications, making them suitable for demanding tasks, such as signal processing, data analytics, cryptography, and high-speed networking. Moreover, in telecommunications, they can be used in network switches, routers, and base stations to handle data packet routing and processing with minimal delay. For instance, in March 2024, Intel, a leading technology corporation, launched its latest venture, named Altera, a standalone FPGA. Altera's FPGA allows customization that further allows the integration of upcoming standards such as PCl Express, CXL, ethernet, and 6G wireless.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia-Pacific exhibits a clear dominance in the market

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the field programmable market report, Asia Pacific accounted for the largest market share.

Asia Pacific is a major hub for IoT device manufacturing and deployment across various industries, including automotive, healthcare, agriculture, etc. FPGAs provide the flexibility and reconfigurability required for IoT devices to adapt to changing requirements, driving their adoption in the region. Countries in Asia Pacific are at the forefront of 5G network deployment. FPGAs are essential components in 5G infrastructure for tasks such as baseband processing, beamforming, and protocol handling. As 5G adoption accelerates, the demand for FPGAs in telecommunications equipment is expected to grow significantly. For instance, in February 2024, HCLSoftware collaborated with Viettel High Technologies, a subsidiary of Viettel group, company based in Vietnam, to launch a 5G UPF acceleration solution powered by Intel. Using Intel's Agilex 7 FPGA Technology-based SmartNIC/IPU/DPU Platforms and HCLSoftware's 5G User Plane Function (UPF) telecommunications software. The collaboration increases 5G network performance and reduces latency, ultimately improving subscriber user experiences.

Competitive Landscape:

The level of competition in the market is moderate with a moderate threat of new entrants. Established players have a long history of developing and refining FPGA technologies, which provides them with a competitive advantage. As for the threat of new entrants, it can be somewhat challenging for new companies to enter the FPGA market, as developing FPGA technology requires significant research and development (R&D) investments, as well as expertise in semiconductor design and manufacturing. The established players in the market have made substantial investments in these areas over many years, giving them a strong technological advantage. However, numerous advancements in technology and evolving market dynamics can create opportunities for new entrants, such as hybrid FPGAs, machine learning (ML) accelerators, and high-performance computing solutions. 

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include: 

• Achronix Semiconductor
• Cypress Semiconductor Corporation (Infineon Technologies AG) 
• Efinix Inc.
• EnSilica Limited
• Flex Logix Technologies Inc.
• Gidel Inc.
• Intel Corporation
• Lattice Semiconductor Corporation
• Microsemi Corporation (Microchip Technology Inc.)
• Quicklogic Corporation
• Taiwan Semiconductor Manufacturing Company
• Xilinx Inc.
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Field Programmable Gate Array Market Recent Developments:

• May 2024: Oak Development Technologies launched Lattice iCE40-powered field-programmable gate array development board designed to expand Feather-format projects.
• May 2024: Sundance DSP, an expert in edge computing, planning to introduce the TinyBeast FPGA, a small but mighty field-programmable gate array (FPGA) device built on Microchip's PolarFire platform.
• May 2024: Lattice Semiconductor, the low-power programmable leader, announced that it would present its latest FPGA technology at the Embedded Vision Summit 2024.

Field Programmable Gate Array (FPGA) Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the field programmable gate array (FPGA) market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global field programmable gate array (FPGA) market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the field programmable gate array (FPGA) industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.