Application-Specific Integrated Circuit in Australia Trends and Forecast
The future of the application-specific integrated circuit market in Australia looks promising with opportunities in the telecommunication, industrial, automotive, and consumer electronic markets. The global application-specific integrated circuit market is expected to reach an estimated $21.8 billion by 2031 with a CAGR of 5.7% from 2025 to 2031. The application-specific integrated circuit market in Australia is also forecasted to witness strong growth over the forecast period. The major drivers for this market are the rising need for specialized and high-capacity chips and the widespread integration of artificial intelligence and machine learning among industries.
• Lucintel forecasts that, within the product type category, semi-custom will remain the largest segment over the forecast period due to its lower complexity and broad range of applications.
• Within the application category, consumer electronics is expected to witness the highest growth due to the increasing use of application-specific integrated circuits in various gadgets, such as smartphones, tablets, and laptops.
Emerging Trends in the Application-Specific Integrated Circuit Market in Australia
Australia’s ASIC market is changing rapidly due to the ever-growing need for highly specialized integrated circuits tailored to particular industries. In sectors such as telecommunications, consumer electronics, and automotive, there has been a tremendous increase in the demand for innovation. Moreover, this market is increasingly affected by trends such as miniaturization, energy efficiency, 5G, AI applications, and sustainability. Since innovation and stronger sustainability demands higher quality and more precise integrated circuits, these trends are shifting the market.
• The Miniaturization of Consumer Electronics Develops ASICs Further: Both consumer electronics and telecommunication devices are shrinking and becoming more complex. This requires further development of application-specific integrated circuits. This change is affecting industries like mobile, IoT, and wearable technology. Miniaturization makes it easier for developers to produce advanced and high-quality devices because there is no longer a need to sacrifice performance. In Australia, there is an increasing demand for faster, smaller, and lower power-consuming ASICs, which in turn leads to additional innovation in the semiconductor industry.
• Energy Efficiency and Low Power Use: As more mobile and wireless devices are used, energy efficiency is a growing concern in the design of ASICs. Sectors like automotive, healthcare, and consumer electronics, which demand long-lasting performance, greatly benefit from energy-efficient ASICs. This is further driven by environmental concerns and the push for sustainable technology. In Australia, the need for energy-efficient ASICs is creating demand for renewable energy technologies, electric vehicle components, and smart home systems that operate with low-power components.
• 5G Connectivity and Telecommunications: The global rollout of 5G networks is one of the most significant drivers of growth in the ASIC market. Australia now has a higher demand than ever for high-performance ASICs for 5G infrastructure such as base stations, routers, and mobile devices. The features of 5G include high bandwidth, low latency, and high data rates; for these, ASICs are essential. Australian telecommunications providers and network infrastructure developers have increasingly adopted ASICs, and with the greater spread of 5G technologies, this adoption is set to grow further.
• AI Shifting Innovation in Multiple Industries: AI is revolutionizing industries such as healthcare, finance, and manufacturing, and machine learning (ML) is extensively benefiting these sectors too. AI has brought a revolution in the technology sector, and machines built specifically to serve AI functions accurately are soaring in demand for faster performance. Like other countries, Australia is deploying AI-powered technologies to diagnose medical problems, while the manufacturing sector endorses AI for predictive maintenance, automation, and other functions. ASICs constructed with AI and ML capabilities allow businesses to effectively process enormous amounts of data, enhance innovative decision-making, and increase business productivity.
• Sustainability in ASIC Development: The growing concern for the environment is the primary reason for the emerging focus on sustainability in ASIC development. Buying energy-efficient products, using recyclable materials, and reducing waste during the manufacturing process all help in lowering the carbon emissions from the products. In Australia, there is an increasing demand for environmentally friendly integrated circuits in the renewable energy sector and smart grid systems. This trend not only helps with energy consumption but also aids in conserving the environment.
The ASIC market in Australia continues to evolve with the ongoing 5G rollout, the incorporation of AI technologies, and the increasing focus on energy efficiency and miniaturization. These advancements are resulting in shifts in demand for high-performing integrated circuits specialized across multiple industries. There have been significant advancements in telecommunications, renewable energy, healthcare, and even manufacturing. Australia’s adoption of new technologies and focus on efficient, green solutions is only going to boost the importance of these application-specific integrated circuits in the future.
Recent Developments in the Application-Specific Integrated Circuit Market in Australia
According to industry reports, the ASIC market in Australia has grown significantly due to the high demand and performance fueled by innovations in telecommunications and electronics. The constant advancement in technology requires high-efficiency, customized microchips in the industry. This is especially true when it comes to AI, energy efficiency, 5G, and miniaturization. To capitalize on this, Australian industries have begun actively adopting these application-specific integrated circuits, strongly correlating with the growth of innovation in Australia. This is leading to more specialized, high-performing integrated circuits, which enable better usability across multiple sectors.
• Creation of ASICs Tailor-Made for 5G: In Australia, one of the key developments in the ASIC market is the increased interest in integrated circuits targeted for 5G. As telecom companies prepare for the imminent adoption of 5G, there is a high demand for specialized circuits—ASICs—that can support the higher data rates, lower latency, and better interconnection of 5G networks. In Australia, this is especially important for enabling the country’s infrastructure to support 5G services. Using these types of ASICs ensures that all 5G applications perform at their optimum level. This provides mobile service providers with reliable and efficient solutions while increasing the speed of data transmission and the overall performance of the network.
• AI-Optimized ASICs for Efficient High-Performance Computing: Australian industries have started adopting artificial intelligence-optimized ASICs due to their applications in the healthcare, finance, and manufacturing sectors. AI-driven applications require very specific, specialized chips that can efficiently handle intricate data manipulation. Machine learning tasks need powerful chips, faster than what general-purpose processors can supply. This trend in Australia is encouraging the growing adoption of AI technology, enabling industries to process larger volumes of information and make decisions in many areas—autonomous vehicles, medical diagnostics, and more.
• Sustainable Technology’s Effective ASICs: The growth of energy-efficient ASICs is driven by numerous electric consumption issues and environmental concerns. Industries in Australia, such as automotive, telecommunications, and renewable energy, are adopting low-power ASIC solutions to reduce energy use while increasing performance. These ASICs power the development of electric vehicles, build renewable energy infrastructure, and support other energy-efficient consumer electronics. The increasing green technology efforts in Australia are making low-energy ASICs highly in demand, which is also beneficial for ensuring sustainable development and low-carbon growth internationally.
• Compact Device Miniaturization of ASICs: This trend is very important in Australia, particularly in the consumer electronics and IoT device markets. As devices continue to shrink in size, there is a growing need for compact, high-performance ASICs. The market has been able to reduce the physical size of integrated circuits while retaining their functionality. In Australia, this trend has led to the development of next-generation smartphones, fitness trackers, and smaller, lighter connected home devices, enabling the country to remain competitive in the fast-evolving market.
• Progress Within Custom ASIC Design: New developments in custom ASIC design are allowing Australia-based companies to develop integrated circuits specific to an industry. These sectors, including telecommunications, healthcare, and automotive, benefit from custom ASIC designs due to increased efficiency, power, and cost savings. This is particularly significant for companies in industries that require specialized application circuits for particular uses. With these advanced solutions, Australian companies are able to respond to the global need for high-performance chips and remain competitive in the world market.
The ongoing developments in the ASIC market of Australia, such as integrated circuits and systems for 5G, AI-optimized structures, energy-saving solutions, custom ASICs, and miniaturization, are certainly changing the future of various industries. These advancements in Australia are driving exceptional demand for highly specific solutions and positioning Australia at the forefront of the international semiconductor industry. As advanced technologies integrate into Australian industries, the need for exceptional performance from ASICs will grow, enhancing Australia’s economy and modernizing its industries.
Strategic Growth Opportunities for Application-Specific Integrated Circuit Market in Australia
Australia has an opportunity to grow its application-specific integrated circuit (ASIC) economy due to customizable chip design requirements within its sectors, including telecommunications, automotive, and energy industries. The economy is poised for advanced technological growth, and with the growing trend of globalization, Australia can capitalize on this by investing in new markets. In this chapter, five strategic gaps within the Australian market are discussed, which can accelerate the Australian economy, business, and market activity.
• Telecommunications & 5G Infrastructure: The introduction of telecommunication 5G networks has increased market activity for ASIC providers in Australia. The requirement for more efficient machines increases the connectivity base, forming more relationships and clients globally. There is a growing demand for routers, base stations, and mobile devices that require new ASICs. These also lower mobile network latency and significantly increase data transfer rates. The explosion of self-driving IoT and vehicle utilities will lead to a higher demand for advanced ASICs that help remain at the forefront of competition.
• Automotive and Electric Vehicle (EV) Applications: Australia offers many opportunities with the rise of electric vehicles (EVs) and the ASIC market. In EVs, ASICs are critical for power management, battery systems, and technologies used for autonomous driving. As electric and self-driving cars become more prevalent, there is higher demand for powerful ASICs that improve energy security and safety. The use of EVs with renewable energy grids and smart systems increases the demand for innovative circuits to integrate these technologies, which raises the need for specialized circuits.
• AI and Machine Learning Applications: The increasing use of artificial intelligence (AI) and machine learning (ML) technologies across numerous industries is a significant opportunity for the ASIC market. Specialized ASICs for AI/ML offer greater efficiency and faster data processing, delivering more power than general processors. In Australia, industries including healthcare, finance, and manufacturing utilize AI for innovative predictive maintenance, medical diagnostics, and various automation tasks. Optimized AI workload ASICs will be critical for advancing solutions in these sectors, making growth pivotal.
• Healthcare and Medical Devices: Australia is making faster strides in adopting telemedicine, health wearables, and AI-ML-enabled diagnostics, all of which need specialized ASICs. These circuits ensure high precision, low power consumption, and real-time processing for medical applications. ASICs are applied in diaphragmatic pacemakers, hearing units, and other diagnostic technology for better patient care and increased accuracy. As healthcare continues to advance towards digitization, there will be a corresponding surge in demand for custom ASICs that address specific healthcare infrastructure requirements.
• Renewable Energy and Smart Grids: Emerging opportunities in Australia include increased use of renewable energy sources and the development of smart grid systems. ASICs are essential for optimizing energy storage, distribution, and the construction of solar and wind energy power plants. They also help build smart grids incorporating sophisticated information technology for better communication and effective control of electricity supply. The shift towards sustainability and green energy in Australia will drive demand for energy-efficient ASICs that improve the overall performance and reliability of renewable energy systems.
These five areas of growth and investment—5G infrastructure, automotive and EV applications, AI and ML applications, healthcare, and renewable energy—are increasing the demand for application-specific integrated circuits in Australia. As a result, the Australian ASIC market is expected to grow significantly as industries continue to shift towards high-quality bespoke solutions, fostering innovation and advancement in critical sectors of the economy.
Application-Specific Integrated Circuit Market in Australia Driver and Challenges
The Australian application-specific integrated circuit (ASIC) market is influenced by multiple technological, economic, and regulatory factors. These drivers and challenges create new growth possibilities and obstacles to overcome in the region’s market. They are crucial for investors seeking opportunities in the market’s positive potential, as well as its risks and complexities. Below is a summary of the primary drivers and challenges affecting the Australian ASIC market.
The factors responsible for driving the application-specific integrated circuit market in Australia include:
• Progress in Technology: The most significant factor driving the ASIC market is technological innovation. There is a growing need for specialized chips such as AI processors, 5G communication pieces, and energy controllers in the evolving industries of telecommunications, automotive, and healthcare. Compared to general-purpose processors, ASICs offer enhanced performance, reduced energy consumption, and greater efficiency, making them crucial for the advancement of next-generation technologies. This trend is greatly increasing the need for custom-designed ASICs that cater to the requirements of these industries.
• Increased Usage of AI and Automation: The incorporation of AI and automation technologies is a primary reason for the increasing demand for ASICs in Australia. AI and machine learning depend on specialized hardware to perform complex tasks, such as data processing and decision-making. Industries such as healthcare, finance, and manufacturing have implemented AI-powered ASIC solutions for predictive maintenance, advanced medical diagnostic tools, and intelligent automation. There are enormous growth opportunities in this area.
• 5G Expansion and Updated Telecom Network: The most significant factor driving ASIC demand in Australia is the ongoing rollout of 5G networks. Telecom companies require specialized ASICs to ensure optimal performance for 5G’s high-speed, low-latency features. These chips are used in base stations, routers, and mobile devices requiring high data throughput and reliable connectivity. The expansion of 5G technology is not only improving telecommunications but also enabling new applications in IoT, autonomous vehicles, and industrial automation, which further increases the need for ASICs in these fields.
• Economic Growth and Increased Investment in Innovation: Australia’s economic expansion, coupled with increased spending on technological innovations, is aiding the expansion of the ASIC market. Increasing investment in research and development across industries is creating higher demand for tailored high-performance chips. Additionally, the Australian government’s support for industries focused on renewable energy, healthcare, and telecommunications is boosting demand for customized ASIC products. This economic environment encourages the incorporation of ASIC technology by enterprises to enhance competitiveness and meet market challenges.
• Environmental Sustainability and Green Technologies: As Australia focuses on sustainability, it is embracing green technologies like renewable energy sources and electric vehicles. ASICs are vital in developing energy-efficient technologies that reduce carbon footprints. In sectors such as renewable energy, electric vehicles, and smart grids, ASICs enable sustainable energy production, storage, and distribution. The growing emphasis on sustainability is one of the most significant drivers of growth in the ASIC industry, as more companies and governments seek solutions that support green initiatives and improve energy efficiency.
Challenges in the application-specific integrated circuit market in Australia are:
• High Development Costs: A major challenge in the ASIC industry in Australia is the high cost associated with designing and fabricating custom ASICs. Constructing ASICs requires significant initial investment in research and development and specialized manufacturing facilities. These high costs can hinder smaller firms and startups from investing in ASICs, leaving the market open for larger, more resourceful companies. Cost-efficient manufacturing and collaboration between industry players will be crucial in addressing this challenge.
• Issues of Compliance and Regulation: Like other markets in Australia, the ASIC market faces unique regulatory and compliance challenges, especially in healthcare, automotive, and telecommunications. Medical devices incorporating ASICs, for example, must pass stringent regulatory requirements to ensure safety and reliability. Similarly, the telecommunications industry faces complex issues related to compliance with international regulations on 5G technology and data security. Adhering to these regulations requires adequate legal and regulatory knowledge and the ability to adjust to new situations.
• Supply Chain Disruption Challenges: Disruptions in the global supply chain, such as those caused by the COVID-19 pandemic or politically motivated issues, have limited the supply of raw materials and components essential for ASIC production. Furthermore, the limited supply of critical components like semiconductor chips has led to delays and increased costs for manufacturers. These disruptions hinder the growth and timely availability of ASICs, affecting market access. Organizations must focus on creating flexible supply chains and revising vendor selection policies to minimize the impact of supply chain disruptions.
Australia’s ASIC market is shaped by factors such as the increasing demand for AI and automation, advancements during 5G rollouts, economic growth, and a greater focus on sustainability. These factors present challenges like high development costs, supply chain disruptions, and regulatory compliance issues. Despite these challenges, the opportunities offered by these factors are likely to boost competition in the market, driving further innovation and growth in the ASIC industry.
List of Application-Specific Integrated Circuit Market in Australia Companies
Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. Through these strategies, application-specific integrated circuit companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the application-specific integrated circuit companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10
Application-Specific Integrated Circuit Market in Australia by Segment
The study includes a forecast for the application-specific integrated circuit market in Australia by product type and application.
Application-Specific Integrated Circuit Market in Australia by Product Type [Analysis by Value from 2019 to 2031]:
• Full Custom ASIC
• Semi-Custom ASIC
• Programmable ASIC
Application-Specific Integrated Circuit Market in Australia by Application [Analysis by Value from 2019 to 2031]:
• Telecommunication
• Industrial
• Automotive
• Consumer Electronics
• Others
Features of the Application-Specific Integrated Circuit Market in Australia
Market Size Estimates: Application-specific integrated circuit in Australia market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Application-specific integrated circuit in Australia market size by product type and application in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different product type and application for the application-specific integrated circuit in Australia.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the application-specific integrated circuit in Australia.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.
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FAQ
Q1. What are the major drivers influencing the growth of the application-specific integrated circuit market in Australia?
Answer: The major drivers for this market are the rising need for specialized and high-capacity chips and the widespread integration of artificial intelligence and machine learning among industries.
Q2. What are the major segments for application-specific integrated circuit market in Australia?
Answer: The future of the application-specific integrated circuit market in Australia looks promising with opportunities in the telecommunication, industrial, automotive, and consumer electronic markets.
Q3. Which application-specific integrated circuit market segment in Australia will be the largest in future?
Answer: Lucintel forecasts that, within the product type category, semi-custom will remain the largest segment over the forecast period due to it’s lower complexity and broad range of applications.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.
This report answers following 10 key questions:
Q.1. What are some of the most promising, high-growth opportunities for the application-specific integrated circuit market in Australia by product type (full custom ASIC, semi-custom ASIC, and programmable ASIC), and application (telecommunication, industrial, automotive, consumer electronics, and others)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
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