Analog Market Momentum to Continue Throughout 2022

Market forecast of 12% growth in 2022 follows historic 30% jump in analog sales in 2021.

Another year of double-digit market growth is expected for analog integrated circuits in 2022 after sales in this semiconductor category surged by an unprecedented 30% in 2021, during the economic recovery from the global recession caused by the Covid-19 virus crisis in 2020, according to IC Insights’ 1Q Update to its 2022 McClean Report.

Total analog IC sales are forecast to rise 12% to $83.2 billion in 2022, with unit shipments increasing 11% to 238.7 billion (Figure 1).  The average selling price of analog ICs is projected to grow 1% in 2022.

Figure 1

Last year’s analog IC market will be one to remember on account of the strength and breadth of its growth.  The analog market’s extraordinary increase of 30% in 2021 lifted sales to an all-time high of $74.1 billion.  IC Insights’ 1Q Update shows analog unit shipments climbed 22% in 2021 to a record-high level of 215.1 billion. The combination of strong demand and well-documented supply-chain disruptions contributed to a 6% increase in the average selling price for analog ICs last year.  (Prior to that, the last year that the analog ASP increased was 2004.)

This year, every major general-purpose analog and application-specific analog market category tracked by IC Insights is forecast to post a sales increase, ranging from 7% growth in the amplifiers and comparators segment to 17% growth for automotive application-specific analog ICs (Figure 2).

Figure 2

Growing shipments of 5G cellphone handsets and the infrastructure to support them are one of the key reasons that the communications segment is forecast to account for the largest portion of analog IC sales in 2022. Wireless communication applications are expected to represent 91% of sales within the communication analog segment this year with wired communications applications accounting for 9%.

Power management ICs are forecast to be the second-largest analog segment in 2022.  Power management chips help regulate power usage to keep devices running cooler and help extend battery life—essential features in mobile/battery operated systems like cellphones, laptops, and many other portable systems. They also regulate functions like stepper motors, communication interfaces, and back lighting in displays.

Report Details:  The 2022 McClean Report
The McClean Report—A Complete Analysis and Forecast of the Semiconductor Industry is now available.  A subscription to The McClean Report service includes the January Semiconductor Industry Flash Report, which provides clients with IC Insights’ initial overview and forecast of the semiconductor industry for this year through 2026. In addition, the first of four Quarterly Updates to the report was released in February, with additional Quarterly Updates to be released in May, August, and November of this year.  An individual user license to the 2022 edition of The McClean Report is available for $5,390 and a multi-user worldwide corporate license is available for $8,590. The Internet access password and the information accessible to download will be available through November 2022.

Categories: Fabless Semiconductors, Mergers & Acquisitions, Semiconductor Market Reasearch

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