Radio Frequency Integrated Circuit (RFIC) Market Size [2031]

Report Description

Radio Frequency Integrated Circuit (RFIC) Market Outlook 2031.

The global radio frequency integrated circuit (RFIC) market size was USD 21.69 Billion in 2022 and is likely to reach USD 43.72 Billion by 2031, expanding at a CAGR of 8.1% during 2023–2031. The market growth is attributed to the increasing adoption of mobile phones and IoT devices across the globe.

Growing adoption of mobile phones is expected to boost the demand for radio frequency integrated circuits (RFICs) in the coming years. RFIC is mainly used in mobile phones to transmit and receive radio waves to enable wireless communication.

RFIC in mobile phones integrates multiple functions and performs sophisticated signal processing to achieve high-quality and efficient radio communication. Therefore, increasing adoption of mobile phones is estimated to boost the market during the forecast period. For instance, the number of mobile devices operating across the globe was 15 billion in 2021 and is expected to reach 18.22 billion by 2025.

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A radio frequency integrated circuit is a chip that transmits and receives radio waves in the frequency range of 3 kHz to 2.4 GHz. RFIC includes RF transceivers IC, RF amplifiers IC, RF modulators/demodulators IC, RF mixers/multipliers IC, and RF switch IC. Radio frequency integrated circuit is mainly used in IoT devices and mobile phones to provide signal amplification, frequency conversion, and modulation.

The COVID-19 pandemic impeded the demand for radio frequency integrated circuits (RFIC). The manufacturing factories of radio frequency integrated circuits faced a struggle while manufacturing or assembling new integrated circuits, due to the shortage of semiconductor chips and disruption in the supply chain.

Moreover, a sharp decline was seen in the smartphone industry that significantly hampered the demand for radio frequency integrated circuits, as these integrated circuits are utilized in smartphones to provide wireless communication. For instance,

• According to a report, 1.35 billion smartphones were sold globally in 2020 as compared to 1.54 billion in 2019.

Impact of Artificial Intelligence (AI) on Radio Frequency Integrated Circuit (RFIC)

The integration of artificial intelligence in integrated circuits creates a lucrative opportunity in the market. AI in radio frequency integrated circuits tracks and identifies potential interference in signals by differentiating the types of signals.

AI-enabled RFIC detects anomalies in network traffic and develops countermeasures to mitigate them. RFIC with artificial intelligence improves network performance, optimizes spectrum usage, and enhances security.

Radio Frequency Integrated Circuit (RFIC) Market Dynamics

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Major Drivers

Growing automobile industry is expected to boost the demand for radio frequency integrated circuits during the forecast period. RFICs are used in automotive radar systems for applications such as collision avoidance, adaptive cruise control, and parking assistance, ensuring superior safety. Therefore, increasing automobile industry is projected to enhance the market in the coming years. For instance,

• According to a report published by European Automobile Manufacturers Association, 85.4 million motor vehicles were produced globally in 2022, an increase of 5.7% as compared to 2021.

Existing Restraints

The interference involved in RF signals is anticipated to hamper the demand for radio frequency integrated circuits in the coming years. RF signals are susceptible to interference from other electronic devices, which leads to reduced signal quality and reliability.

Moreover, the limited range of RF signals is estimated to hinder the market during the forecast period, as RFIC is used in wireless communication for transmitting and receiving radio signals.

Emerging Opportunities

Increasing demand for next-generation wireless networks such as 5G creates an immense opportunity in the market. Radio frequency integrated circuits are used in 5G infrastructure to amplify the performance and coverage of 5G networks by boosting the signal strength.

Moreover, companies in the market are investing in R&D activities to develop and introduce RFIC to boost the performance of 5G networks in large deployments. For instance,

• On September 22, 2021, Sivers Semiconductors AB, a Sweden-based technology company that develops RF chips and antennas for advanced 5G systems, launched a new 5G NR radio frequency integrated circuits (RFICs), TRB02801 and TRB03901. These RFICs support the full frequency range from 24.25 to 43.5 GHz with speeds up to 5 Gbit/s.

Scope of the Radio Frequency Integrated Circuit (RFIC) Market Report

The report on the market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Radio Frequency Integrated Circuit (RFIC) Market Segment Insights

Product Type Segment Analysis

Based on product type, the radio frequency integrated circuit (RFIC) market is categorized into RF transceivers IC, RF amplifiers IC, RF modulators/demodulators IC, RF mixers/multipliers IC, RF switch IC, and others.

The RF switch IC segment held a large share of the market in 2022, due to high design flexibility, fast switching time, and low insertion loss. RF switches are used for antenna switching and band selection of different RF paths. It is extensively used in microwave test systems for signal routing between instruments and devices under test.

The RF transceivers IC segment is estimated to expand at a robust pace during the assessment period, owing to its ability to transmit signals over impressive distances. RF transceivers IC is used in baseband modems and routers for analog and digital transmission. It is suitable for networks that spans large areas, as it supports both transmit and receive functionalities in a single module.

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Industry Vertical Analysis

In terms of industry verticals, the global market is segregated into automotive, telecommunication, consumer electronics, media & broadcasting, healthcare, and others. The consumer electronics segment accounted for a major share of the market in 2022, due to the rising disposable income of consumers in emerging nations and increasing adoption of wearable devices, smartphones, laptops, routers, and others.

Radio frequency integrated circuits are used in consumer electronics to enhance high-frequency rectification and efficiency in a variety of devices such as personal computers, laptops, smartphones, and data communication systems.

The automotive segment is anticipated to expand at a rapid pace in the coming years, owing to the growing infrastructure, improved road connectivity, and increasing advancement in electronic components of vehicles. Radio frequency integrated circuits are used in automotive safety systems such as adaptive cruise control and parking assistance to provide enhanced safety. These benefits offered by RFIC in automotive are expected to boost their demand during the forecast period.

Regional Outlook

Based on region, the radio frequency integrated circuit (RFIC) market is divided into Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America dominated the market in 2022, due to the increasing requirements for advanced features in RFIC and the presence of major players in the market such as Analog Devices, Inc., Texas Instruments Incorporated, Broadcom, Microchip Technology Inc., and Silicon Laboratories in the region.

Moreover, the rising number of data centers is propelling the need for radio frequency integrated circuits, as it is used in data centers for signal amplification, frequency conversion, and modulation. RFIC also offers wide coverage, high data transfer rates, and efficient signal processing, which increases its adoption in data centers. For instance, there were 5,375 data centers located in the US by September 2023.

The market in Asia Pacific is projected to expand at a high CAGR during the forecast period, owing to the growing automotive industry and increasing demand for consumer electronics, especially smartphones. Radio frequency integrated circuit is widely utilized in smartphones to enable wireless communication by transmitting and receiving radio waves.

RFIC in smartphones offers sophisticated signal processing, ensuring high-quality and efficient radio communication. Thus, growing adoption of smartphones in the region is estimated to boost the market. For instance, the penetration rate of smartphones in Asia Pacific is estimated to reach 90% by 2030.

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