The advanced  packaging market was worth $29 billion last year and is expected to grow at 6.6% CAGR 2019-25, says Yole Développement

The advanced  packaging market was worth $29 billion last year and is expected to grow at 6.6% CAGR 2019-25, says Yole Développement

In revenue, mobile & consumer is the biggest market segment with 85% of the total advanced packaging market in 2019. It’ll grow at 5.5% CAGR between 2019 and 2025.

CAGR revenue growth from different package types are:  2.5D / 3D stacking IC, Embedded Die, and Fan-Out: 21%, 18% and 16%, respectively.

The total IC packaging market was worth US$68 billion in 2019. The share of advanced packaging in the overall semiconductor market is increasing continuously. According to Yole, it will reach almost 50% of the market by 2025.

At the same time, the traditional packaging market will grow at CAGR2019-2025 of 1.9% and total packaging market will grow at CAGR2019-2025 of 4% to reach US$43 billion and US$85 billion, respectively.

The highest revenue CAGR is expected from 3D stacking platforms with 21% CAGR between 2019 and 2025, followed by Embedded Die and Fan-Out, with CAGRs of 18% and 15.9%, respectively.

High volume products will, therefore, further penetrate the market: Fan-Out in mobile, networking and automotive; 3D stacking in AI/ML , HPC , datacenters, CIS , MEMS/sensors; And Embedded Die in mobile, automotive and base stations.

Mobile & consumer revenue constituted 85% of the total advanced packaging revenue in 2019. Yole forecasts a 5.5% CAGR between 2019 and 2025 by when it will generate 80% of the advanced packaging revenue.

Telecom & infrastructure is the fastest growing segment (~13%) of advanced packaging market by revenue and it’ll increase its market share from 10% in 2019 to 14% by 2025.

Automotive & transportation segment will grow at 10.6% CAGR between 2019 and 2025 to reach about US$1.9 billion in 2025. However, its market share, within the advanced packaging market, will remain flat, to reach at about 4%