According to a new report published by AkVis Intelligence, titled, “System in Package (Sip) Technology Market by Packaging Technology, Packaging Method, Application, and Region: Global Opportunity Analysis and Industry Forecast, 2024–2032,” the global System in Package (Sip) Technology Market Size Was Valued at USD 19.54 Billion in 2023 and is Projected to Reach USD 45.59 Billion by 2032, Growing at a CAGR of 9.87% From 2024-2032.
A System in Package (SiP) is a major advance in electronics integration because it combines multiple integrated circuits into a single module. This advancement combines all the functions of a complete electronic system into a small and powerful device. Unlike conventional configurations where passive components are separated, SiP integrates them all on a single chip. This integration simplifies printed circuit board (PCB) design and assembly and significantly reduces development costs. SiPs improve cost-effectiveness and operational versatility by reducing the need for additional components and maximizing space utilization.
SiPs offer a significant advantage in that they operate under a wide variety of operating conditions, including the harsh conditions often found in automotive and industrial applications. Their robust construction allows them to withstand environmental conditions, meaning they are ideal for use in demanding environments where reliability is critical. In addition, their small size and compact footprint save space, which is especially important in areas with limited space. The small size makes it easy to connect to various electronic devices, which contributes to the reduction of consumer electronics and data traffic.
According to the global System in Package (SIP) Technology Market is segmented into Packaging Technology, Packaging Method, Application, and region. By Packaging Technology, the market is categorized into 2D IC Packaging, 2.5D IC Packaging, and 3D IC Packaging. By Packaging Method, the market is categorized into Wire Bond, Flip Chip, and Fan-out Water Level Packaging. By Application, the market is categorized into Consumer Electronics, Automotive, Telecommunication, Industrial Systems, Aerospace and Defense, and Others. By region, it is analyzed across North America (U.S.; Canada; Mexico), Eastern Europe (Bulgaria; The Czech Republic; Hungary; Poland; Romania; Rest of Eastern Europe), Western Europe (Germany; UK; France; Netherlands; Italy; Russia; Spain; Rest of Western Europe), Asia-Pacific (China; India; Japan; Southeast Asia, etc.), South America (Brazil; Argentina, etc.), Middle East & Africa (Saudi Arabia; South Africa, etc.).
The rapid development of research and development and technological development has led to an increasing need for small and reliable electronic devices. Advances in semiconductor technologies have been key to accelerating this trend, which requires the use of advanced IC packaging methods. Significant innovations are seen in integrated circuit (IC) packaging, which is essential for integrating logic, memory, RF, and sensor components into smaller form factors. One advance is the System in a Package (SiP), which offers efficient solutions with low energy consumption, all in small sizes. SiP technology is essential for improving circuit performance and reducing power consumption by reducing wire length and optimizing power dissipation.
The growing use of RF components in building advanced 5G infrastructure is expected to significantly boost market growth in the coming years. With the proliferation of high-bandwidth devices, wireless networks face increased congestion problems, leading to an increasing need to migrate from 3G and 4G LTE networks to 5G technology. Predictions suggest that 5G technology will offer much higher data rates than conventional standards, providing significantly higher data rates and network efficiency. Strategic partnerships and the development of new markets are expected to drive market growth. These partnerships will play an important role in leveraging synergies between technology sectors and improving the sustainability and scalability of 5G networks worldwide.
Global System in Package (Sip) Technology Market, Segmentation
The System in Package (Sip) Technology market is segmented based on Packaging Technology, Packaging Method, Application, and Region.
Packaging Method:
The Packaging Method segment is further classified into Wire Bond, Flip Chip, and Fan-out Water Level Packaging. Among these, the wire bond sub-segment accounted for the highest market share in 2023. Packaging techniques are essential to improve the performance and efficiency of advanced electronic devices in the semiconductor industry. Flip chip packaging (FC) is a differentiating technology among other methods used, especially in processor applications by large companies such as Intel in the United States. This technology improves both thermal regulation and electrical efficiency, which is crucial for high-end processors. As the need for small packages and additional functions grows, flip-chip packaging is critical for application processors and baseband devices in mobile platforms. This trend emphasizes its important role in improving the properties of modern semiconductors. At the same time, fan-out level packaging (FOWLP) is becoming a key technology to advance the development of semiconductor packaging.
Application:
The application segment is further classified into Consumer Electronics, Automotive, Telecommunication, Industrial Systems, Aerospace and Defense, and Others. Among these, the Consumer Electronics sub-segment is anticipated to show the fastest growth by 2032. The consumer electronics sector has become a major player in the use of System-in-Package (SiP) technology, showing significant expansion and leading market share. SiP technology combines multiple functions in the same package, offering better performance and a small size suitable for consumer electronics. These developments have revolutionized devices such as smartphones, mobile devices, and smart home devices by increasing the number of functions in a compact size, improving energy efficiency, and maximizing performance. The widespread use of SiP technology in the electronics industry has greatly increased the demand for smaller, more efficient devices that satisfy consumers. Manufacturers take advantage of SiP's ability to combine different components such as processors, memory, and sensors into a single module, helping to create more compact and advanced products.
Region:
The System in Package (Sip) Technology market in Asia-Pacific is projected to show the fastest growth by 2032s. Asia Pacific is the dominant force in the global system-in-package (SiP) market, leading in terms of market share and revenue, and is expected to maintain this leading position with the highest compound growth rate (CAGR) during the forecast period. The significant dominance is largely due to the rapid adoption of cutting-edge technology in the consumer electronics industry and the strong presence of major players in the region. Japan's Sony and South Korea's Samsung Electronics are playing a key role in promoting the Asia Pacific SiP market by leveraging their technological expertise and extensive market position. SiP solutions are in high demand in the consumer electronics industry, especially in devices such as tablets and smartphones, due to the need for compact and efficient packaging solutions.
Some of The Leading/Active Market Players Are-
- SAMSUNG (South Korea)
- Amkor Technology (U.S.)
- ASE Group (Taiwan)
- ChipMOS TECHNOLOGIES INC. (Taiwan)
- JCET Group Co., Ltd. (China)
- Texas Instruments Incorporated (U.S.)
- Unisem (Malaysia)
- UTAC (Singapore)
- Renesas Electronics Corporation (Japan)
- Intel Corporation (U.S.)
- FUJITSU (Japan), and Other Active Players
Key Industry Developments
- In March 2024, Chinese assembly and testing company, JCET Group (JCET), announced its intention to acquire 80% equity of SanDisk Semiconductor Shanghai Co., Ltd. (SDSS), a subsidiary of Western Digital Corporation (WDC), for USD 624 million in cash. This strategic move aims to expand JCET’s market share in the storage.
- In March 2023, Octavo Systems announced a new product family of system in chip (SiP) named OSD62x that helps to expand the performance of edge and small form factor embedded processing into next-generation applications. The OSD62x family is based on the Texas Instruments (TI) AM623 and AM625 processors. Delivering the smallest AM62x module form factor, the OSD62x SiP family integrates high-speed memory, power management, passive components, and much more into a single BGA package.
Key Findings of the Study
- The global System in Package (SiP) technology market was valued at USD 19.54 billion in 2023 and is projected to reach USD 45.59 billion by 2032, growing at a CAGR of 9.87%. This growth is driven by advancements in semiconductor technologies and the increasing demand for compact, high-performance electronic devices.
- Among packaging methods, wire bonds held the highest market share in 2023. Flip-chip packaging is crucial for applications requiring thermal management and electrical efficiency, particularly in high-end processors and mobile platforms. Fan-out wafer-level packaging (FOWLP) is also gaining prominence in semiconductor packaging advancement.
- Consumer electronics is expected to exhibit the fastest growth in SiP adoption by 2032. This sector benefits significantly from SiP technology's ability to integrate multiple functions into compact modules, enhancing device performance, energy efficiency, and consumer appeal.
- The Asia-Pacific region leads the SiP market, driven by rapid technological adoption in consumer electronics and the presence of major industry players like Sony and Samsung. This region is poised to maintain its dominance and highest growth rate due to increasing demand for efficient and space-saving electronic solutions.
T. Kumbhar
Author Information
T. Kumbhar is a Senior Market Research Consultant at IMR, specializing in Agro-Chemicals, Food Tech, Consumer Goods, and more. With four years of experience, he delivers market insights, competitive analysis, and data-driven business strategies.
