Application-Specific Integrated Circuit in United Kingdom Trends and Forecast
The future of the application-specific integrated circuit market in the United Kingdom 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 United Kingdom 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 United Kingdom
The United Kingdom application-specific integrated circuit (ASIC) market is undergoing shifts due to advancements in technology, new regulations, and increasing demand in different markets. This transformation is changing how ASICs are developed, produced, and placed into applications. The rapid growth of industries like 5G, IoT, AI, and electric vehicles is creating a greater need for specialized chips, which in turn is providing fresh prospects for ASIC manufacturers. This part examines five major trends that are shaping the UK’s future ASIC market, focusing on technological development and evolving markets.
• High Adoption of 5G Technologies in the UK and the Increased Demand for 5G ASICs: As the nation continues strengthening its 5G infrastructure, the demand for high-performance, low-latency integrated circuits (ASICs) present in managed 5G networks is rising. These chips are relied upon for data transmission, management, and optimization of primary 5G networks, making ASICs one of the most sought-after personalized chips. UK telecom and network operators aiming to meet service quality and scalability targets will especially benefit from this innovative leap.
• Growth of IoT and Dedicated ASIC Chips: Increasing Internet of Things (IoT) connectivity in the UK is increasing the need for dedicated chips like ASICs. These specialized chips handle tasks much more efficiently and make it possible to process data instantly, greatly enhancing IoT applications, including home automation, medical devices, and industrial automation. Companies in the UK are now concentrating on developing application-specific optimized ASICs for improved intercommunication between devices and networked systems while minimizing energy use.
• Growth of the EV Market: The development of the electric vehicle (EV) industry has greatly accelerated growth in the UK, creating new demand for application-specific integrated circuits for battery management systems, power control units, and electric motor drive units. UK manufacturers need ASICs to improve mobility and support the electrification of transport in the UK. These steps are critical to enable the UK’s shift towards a more environmentally sustainable, power-driven vehicle industry.
• Integration of Artificial Intelligence (AI) and Machine Learning (ML): The innovation of ASIC designs in the UK is being accelerated through the adoption of AI and machine learning technologies. ASICs are increasingly being utilized to enhance the processing capacity for AI tasks like natural language processing, vision recognition, and deep learning. Firms in the UK are using dedicated ASICs to improve the training and inference phases of AI models, enhancing the performance of AI applications across healthcare, finance, automation, and other fields. This propels the advancement of low-cost and high-efficiency chips designed for AI applications.
• Increasing Focus on Energy-Efficient ASICs for Sustainability: The global shift towards sustainability and energy efficiency has increased the need for high-performing yet low-power consuming ASICs in the UK. Businesses are looking for energy-saving options to cut down carbon emissions and reduce energy usage. Power-saving ASICs are now being used for renewable energy systems, smart grid technologies, and energy-saving appliances. Manufacturers in the UK are increasingly developing more advanced ASICs that economically save energy while performing superiorly, enabling businesses to improve their sustainability practices and comply with environmental policies.
The UK market for ASICs is being transformed by five principal trends: 5G adoption, expansion of IoT, growth in the electric vehicle industry, artificial intelligence, and energy efficiency. The United Kingdom’s dedication to modernization and its sustainability goals are creating further demand for specialized ASICs, pushing manufacturers to create more innovative solutions. These trends not only provide new opportunities for companies but also set the boundaries for the new UK ASIC market, making it one of the prominent semiconductor markets in the world.
Recent Developments in the Application-Specific Integrated Circuit Market in United Kingdom
The application-specific integrated circuit (ASIC) market in the United Kingdom has experienced notable developments in recent years. Like many other countries, the UK has also suffered the consequences of the Covid-19 pandemic. However, its technology development, along with demand from various industries and government initiatives to compete in the semiconductor industry, has greatly enhanced its ASIC market. There is growing interest and investment in the UK due to major efforts, such as those made by the UK government towards semiconductor innovation. Below are some of the most prominent recent developments in the UK’s integrated circuit market.
• Funding for 5G and Infrastructure Networks: The completion of the UK government’s 5G strategy has resulted in additional investments for ASICs developed for 5G use cases. These specialized chips are necessary to increase network performance, and telecom operators are now using advanced ASICs to lower latency, as well as the level of data processing that needs to be supported simultaneously with the ultra-high data rates of 5G. As 5G is deployed across the nation, the need for custom-designed ASICs that handle more productive and reliable networks are increasing, which, in turn, is boosting the profitability of businesses and services in the market.
• Government Support for Electric Vehicle (EV) Innovation: The UK’s commitment to new green initiatives has led to investments in the electric vehicle (EV) industry’s growth, which, in turn, has increased the demand for custom ASICs. Custom ASICs are needed for battery management systems, power control, and electric motor drives for EVs. There is an increase in the number of local ASIC designers and manufacturers in the UK cooperating with automotive companies to produce these specialized chips. This enables the UK to accelerate its transition to an electric vehicle future and provides more business opportunities for ASIC companies.
• Integration of AI and ML with ASICs: The increased adoption of artificial intelligence (AI) and machine learning (ML) across various industries in the UK is fueling the demand for high-performance, custom-developed ASICs. Powerful AI applications, including natural language processing and autonomous systems, need application-specific integrated circuits (ASICs) to effectively process data at very low power levels. Investment is being made in the development of custom-designed ASICs for AI workloads, which enable companies to utilize AI more efficiently. This development strengthens the performance of AI systems in various fields, including healthcare, finance, and manufacturing, thus further highlighting the relevance of ASICs in the AI ecosystem.
• Energy-Efficient ASICs for Sustainable Technologies: Due to a growing focus on environmental safety, the UK is now focusing on energy-efficient technologies, with ASICs at the center of this change. Supporting smart grids, renewable energy, and energy-efficient electronics consumption, ASICs are being designed to power while also performing efficiently. This shift aligns with the UK’s sustainability strategies and the goals set by the country’s ASIC manufacturers to reduce energy use within different industries. The global demand for energy-efficient chips will continue to grow, and the supply for these types of ASICs will increase significantly.
Recent developments in the ASIC sustainability market in the UK are being influenced by a combination of government activity, technological developments, and higher demand for specialized chips from key industries. Specifically, these developments in 5G, IoT, electric vehicles, AI, and energy productivity are significantly increasing demand in the market. The UK is establishing itself as a world leader in semiconductor innovation, and the further advancement of semiconductor technology within the country will mark a new era of fierce competition in the UK ASIC market.
Strategic Growth Opportunities for Application-Specific Integrated Circuit Market in United Kingdom
Based on the growth of primary sectors, it is apparent that the application-specific integrated circuit (ASIC) market in the United Kingdom has ample opportunities. The evolving 5G networks, IoT, Electric Vehicles (EVs), Artificial Intelligence (AI), and Renewable Energy Technologies create a need in these markets for specialized ASICs. This evolution in technology acceleration provides an opportunity for UK ASIC manufacturers to invent and address specific market requirements, thus helping the region define the future of the semiconductor industry.
• Expansion of 5G Networks: The expansion of 5G networks in the United Kingdom is an excellent opportunity for the growth of the ASIC market. The network upgrade by telecom operators creates growth in demand for high-performance ASICs that support data transmission at high speed and low latency, network management, and other functions. These are critical for the proper functioning of a 5G network and make communication possible in the fastest and most dependable manner. There is also an opportunity for manufacturers of specialized chips in 5G technology to improve telecommunications in the country and its competitiveness.
• Growth of IoT Applications: The United Kingdom is witnessing rapid growth in the IoT segment due to the increased demand for various IoT devices. IoT devices require sophisticated low-power ASICs capable of data processing and efficient connectivity. These sophisticated interconnected devices, including smart home products, healthcare systems, and industrial IoT devices, would greatly improve with the implementation of IoT-specific chipsets. ASIC contractors can take advantage of this growth trend by designing application-specific integrated circuits for low-power, scalable IoT devices and assist various businesses in providing advanced IoT solutions for different industries.
• Electric Vehicle (EV) Market Expansion: The increasing demand and production of Electric Vehicles in the United Kingdom shows a shift toward sustainable consumption, which ASIC contractors can benefit from. Application-specific integrated circuits are crucial for EVs’ battery management systems, power control units, and electric motor drive units. As the UK EV market grows, there will be a larger demand for these advanced technologies with high energy efficiency integrated chips. With the right portfolio strategy targeted at EV-specific integrated circuits, ASIC developers will be able to help in the production of clean transportation products and take advantage of this emerging market.
• Merging AI with ML as One Machine: AI and ML integration across several sectors in the United Kingdom creates an avenue for the manufacturing of application-specific integrated circuits (ASICs). AI and machine learning (ML) workloads are computationally intensive and energy-efficient, so performance optimization is ideal with ASICs. When manufacturers produce AI and ML-focused ASICs, businesses in industries such as healthcare, finance, and self-driving cars will be able to increase the effectiveness and scalability of their AI systems. This will promote the advancement of the AI-powered economy in the UK as well as the custom ASIC economy.
The United Kingdom’s application-specific integrated circuit (ASIC) market is experiencing innovations in the sector due to the rise in demands in 5G, IoT, EVs, AI, and energy efficiency. The development of specialized ASICs is, therefore, becoming more frequent since these sophisticated industries have unique requirements. The market is expanding, and these opportunities for growth will help the United Kingdom establish a strong position in the global semiconductor market.
Application-Specific Integrated Circuit Market in United Kingdom Driver and Challenges
Application-specific integrated circuits (ASICs) in the United Kingdom face a wide range of technological, economic, and political paradigms. The integration of new technologies, government funding for research and development, and the growth of significant industries like telecommunications, EVs, and AI are the most notable. All these factors contribute positively to the market. However, obstacles such as increased competitive activities, regulatory barriers, and supply chain interruptions are bound to be encountered. Addressing all these factors during the analysis of the growing ASIC market in the UK is immensely important.
The factors responsible for driving the application-specific integrated circuits market in the United Kingdom include:
• Advancements in the 5G IoT Ecosystem: The growth of 5G and IoT has increased the demand for potent, low-latency chips in the United Kingdom, thus opening a new gateway for growth. The IoT sector is booming, which increases the need for reliable IoT devices. The UK is spearheading research and development of specialized chips that will make communication networks faster and more dependable. This is enabling the UK to emerge as a leader in next-generation technology and helping the growth of the capitalist market.
• Government-Protected Semiconductor Innovation: Government support for semiconductor initiatives is a further driver for the ASIC market within the UK. The UK, alongside sustaining funding for R&D, is developing strategies that will enhance its status in the global semiconductor frontier. These strategies strengthen the local market for ASICs and invite foreign direct investment in chips, microprocessors, and other components, resulting in the rapid creation of new-generation ASIC systems suitable for multifunctional utilization in different sectors of the economy.
• Growing Interest in Electric Vehicles (EVs): The increase in ASIC demand appears to be driven by the need to support electric vehicles in the UK market. Electric vehicles require custom ASIC chips for battery management systems, power control, and electric motor drives. With the UK electric vehicle market, there is a notable emphasis on high-performance, energy-efficient ASICs. The UK electric vehicle strategy and the country’s commitment toward a green future create a unique opportunity to custom-design ASICs that can meet the requirements of this rapidly growing sector, allowing manufacturers to be more competitive in this region.
• Adoption of Artificial Intelligence and Machine Learning: AI and machine learning (ML) are two advanced technologies that have transformed the dynamics of every industry and consequently the demand for complex ASIC chips. These technologies require chips capable of executing large computations with low power consumption. The UK has started deploying AI and ML technologies in several industries, including healthcare, finance, and manufacturing, which increases the need for specialized ASICs that can efficiently perform AI tasks. The focus on AI-specific integrated circuits improves the UK’s technology level and economic performance, motivating manufacturers to develop application-friendly AI chips.
• Prioritize Sustainability and Energy Consumption: Due to the ever-evolving interest in sustainability worldwide, the demand for energy-efficient ASICs in the UK is growing. These chips are crucial in renewable energy systems, smart grids, and devices that save energy. While the UK works on reaching its sustainability targets, it simultaneously opens doors to new markets for ASICs targeted at reducing energy consumption. Manufacturers who specialize in energy-efficient models will be able to respond to the growing demand for green technologies in the UK and the rest of the world.
Challenges in the application-specific integrated circuits market in the United Kingdom are:
• Increased Competition Due to Globalization: Changing market dynamics have led to increased demand for ASICs, exposing the UK to competition from other semiconductor regions, especially Asia, where some of the leading semiconductor manufacturers are located. The ability of UK manufacturers to compete relies on innovation, quality, and cost-effective production. Yet, the growing presence of Asian countries as leaders in the global ASIC market creates problems for the UK’s market share. This signifies a need for more aggressive investment in R&D to sustain competitive advantages.
• Legal Limits: Threads and boundaries of UK legislation controlling semiconductor fabrication can make life tougher for businesses in the ASIC space. Overly controlled manufacturing processes, environmental restrictions, and high levels of legal protection for ideas increase the cost and risks of producing ASICs. These companies, and particularly manufacturers, may face apprehension, especially in the context of Brexit and changing global policies. Businesses in the UK must continue monitoring such changes to remain legally compliant and competitive.
Apart from providing a host of UK market opportunities, emerging technologies, government actions, and the ever-growing demand from the EV and AI sectors are some of the primary drivers fueling growth in the UK’s ASIC market. Nonetheless, barriers such as supply chain issues, competition, and regulations must be solved for uninterrupted economic development. UK manufacturers are poised to increase their global presence and simultaneously contribute to India’s development and economic advancement by strategically maneuvering through these challenges and drivers.
List of Application-Specific Integrated Circuit Market in United Kingdom 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 United Kingdom by Segment
The study includes a forecast for the application-specific integrated circuit market in United Kingdom by product type and application.
Application-Specific Integrated Circuit Market in United Kingdom by Product Type [Analysis by Value from 2019 to 2031]:
• Full Custom ASIC
• Semi-Custom ASIC
• Programmable ASIC
Application-Specific Integrated Circuit Market in United Kingdom by Application [Analysis by Value from 2019 to 2031]:
• Telecommunication
• Industrial
• Automotive
• Consumer Electronics
• Others
Features of the Application-Specific Integrated Circuit Market in United Kingdom
Market Size Estimates: Application-specific integrated circuit in United Kingdom 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 United Kingdom 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 United Kingdom.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the application-specific integrated circuit in United Kingdom.
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 United Kingdom?
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 United Kingdom?
Answer: The future of the application-specific integrated circuit market in United Kingdom looks promising with opportunities in the telecommunication, industrial, automotive, and consumer electronic markets.
Q3. Which application-specific integrated circuit market segment in United Kingdom 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 United Kingdom 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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