Field Programmable Gate Array (FPGA) Market to 2020 - Increasing Preference for FPGAs over Application Specific Integrated Circuits (ASICs) will Drive Demand

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Market	Information Technology
Report Type	Market Research
Country	Global
Published	1 July 2011
Number of Pages	107
Report Delivery	Email
Delivery Lead Time	1-3 hours, 24 hour max
Publisher	GBI Research
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Original Equipment Manufacturers (OEMs) across the globe are increasingly opting for Field Programmable Gate Arrays (FPGAs) instead of Application-Specific Integrated Circuits (ASICs) in order to reduce the time to market. FPGAs offer flexibility and facilitate rapid prototyping. FPGAs also offer an advantage of testing and verifying a concept in hardware without passing through the long fabrication process. Engineers can then make changes and can run number of iterations on an FPGA circuit within hours, rather than in weeks.

As design requirements often change over a period of time, the cost of implementing these incremental changes to FPGAs are almost negligible as compared to the large expense associated with other ICs, such as ASICs. The impact of this driver is expected to be high in the short term period, until 2014. The graph below explains how missing the market window will wipe out all the profits from development and production:

As illustrated above, the profit potential will be comparatively high with an early product launch. Prolonging the time to market will result in reduced profitability.

Power Optimization - a Major Concern

FPGA manufacturers are facing a key challenge in establishing equilibrium between power consumption and design performance. The job is becoming more challenging as designs grow larger and more complex and process geometries shrink to 28nm and below. FPGAs available in the market provide performance and functionalities that chip manufacturers require, but power consumption is higher.

Designing for low power in programmable gate arrays is crucial to the overall design equation for different end markets including communication and consumer electronics market. The telecommunications industry is a more mature FPGA market in this regard, with programmable gate arrays used heavily in routers, switches, base stations and storage servers. These new generation products demand larger and higher performance FPGAs.

FPGA designers are continuing to increase the performance window by adding more functionality into FPGAs and replacing ASICs and ASSPs, while demanding higher system performance. Although the newest 28nm generation FPGAs consumes less power than previous 90nm products, FPGAs still consume a large share of total system power. Designers nowadays design into tighter and smaller spaces, making it hard to provide better airflow and set up proper size heat sinks. Therefore, thermal management and consequently power management both contribute to an area of concern for high-end FPGA design.

Flat Panel TVs Expected to Boost FPGA Sales

Flat panel TVs are expected to open up numerous opportunities for FPGAs, such as the Xilinx Spartan FPGA family and the Altera Cyclone FPGA family. Today, flat panel display and TV producers have to be innovative - not only will they have to find out what advanced functionality sets to add in their next generation TVs to differentiate their TVs from the growing number of competitors, they will also have to get the TVs to market quickly. TV Original Equipment Manufacturers (OEMs) have found that if they want to stay on top and maintain their edge in the TV market, they will have to use low cost FPGAs instead of ASSPs

Usage of FPGAs in flat panel TVs will enhance overall system performance. By shifting to Spartan and Cyclone FPGAs, TV manufacturers can easily optimize and improve the full hardware functionality. The main advantage is that OEMs can integrate the functionalities of multiple circuits into a single FPGA chip; hence, eliminating all the limitations of ASSP based circuits that only allow a few modifications. Switching to a single chip FPGA based design from a multi-chip ASSP based design will result in low power consumption, more space, and overall device performance enhancement. There will also be a reduction of the overall material cost, and most importantly end-product differentiation.

China to Drive Growth in the FPGA Market

China contributed to 43% of the overall Asia Pacific FPGA sales revenue in 2009 and its revenues are expected to grow at a CAGR of 5.9% during the period 2009-2020 in dollar terms. Primary research points to a steep increase in the number of FPGA designers and designers using FPGAs in China.

The consumption of FPGAs in Asia Pacific is expected to show a marked growth between 2010 and 2020. Huge population and rising per capita income, coupled with favorable government policies has made the Asia Pacific countries including China and Japan, the world's largest consumers and suppliers of electronic goods. All the major FPGA manufacturers registered robust growth in sales from the Asia Pacific region.

Report overview

This report provides analysis of the FPGA category of Logic ICs. Applications such as digital signal processing, speech recognition, image processing and bioinformatics are driving FPGA market.

Scope

- Key countries such as China, Taiwan, Japan and South Korea covered for the report
- Thorough Qualitative analysis of the market- PESTLE Analysis, Market Drivers, restraints, Porter's Five Forces Model
- Annualized sale volume and sales revenue data of key semiconductor devices from 2004 to 2009
- Annualized sale volume and sales revenue data forecast forward to 11 years to 2020
- Market share data of key market segments for the base year 2009
- Comprehensive Supply Chain analysis
- Comprehensive Profiles of Key Players

Reasons to buy

- Develop business strategies from the market size and growth data given for global FPGA market
- Understand the competitors operating in the sensors market
- Devise revenue growth strategy from the market share data
- Devise product, sales and marketing strategies from the PESTLE And Porter's Five Forces Analyses
- Identify key growth markets for your products from the country-wise market statistics

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1 Table of Contents
1 Table of Contents 3
1.1 List of Tables 6
1.2 List of Figures 7

2 Global FPGA Market - Report Guidance 8

3 Global FPGA Market - Overview 9
3.1 FPGA Market Overview 9
3.1.1 FPGA Definition 9
3.1.2 FPGA Classification by Design Technology 9
3.1.3 FPGA Key Applications 11
3.2 Global FPGA Market, Key Growth Drivers 11
3.2.1 Increasing Demand for FPGAs in China 12
3.2.2 Flat Panel TVs to Drive the Demand for FPGAs 13
3.2.3 Process Enhancement of FPGAs 15
3.2.4 Reduced Time to Market 16
3.3 Global FPGA Market, Key Growth Challenges 18
3.3.1 Growing Design Complexity 18
3.3.2 Power Optimization 18
3.3.3 Reducing Costs of FPGAs Narrowing Down Profit Margins 19
3.3.4 EDA Tools are Running Out of Gas 19
3.4 Global FPGA, Key Market Barriers 20
3.4.1 Lack of Standardization 20
3.4.2 ASIC, ASSP and DSP Markets are Overlapping with the FPGA Market Space 20
3.4.3 FPGAs have Low Thermal Resistance 20
4 Global FPGA Market Dynamics 21

4.1 Porter's Five Force Analysis on the Global FPGA Market 21
4.1.1 Competitive Rivalry 22
4.1.2 Bargaining Power of Buyers 23
4.1.3 Bargaining Power of Suppliers 24
4.1.4 Threat of New Entrants 25
4.1.5 Availability of Substitutes 26

5 Global FPGA Market Supply chain analysis 27
5.1 Overview 27
5.1.1 Supply Chain Trends 27
5.2 Introduction 27
5.3 Design Phase 29
5.3.1 IP Vendor 29
5.3.2 Design Tool Vendor 29
5.3.3 Design Services 30
5.3.4 Manufacturing Equipment Vendor 30
5.3.5 Raw Material Vendor 31
5.4 Manufacturing Phase 32
5.5 Assembly Test and Packaging (AT&P) Stage 33
5.5.1 Testing Phase 33
5.5.2 Packaging Phase 34
5.6 Distribution Phase 34
5.7 Consumption Phase 35
5.8 Risks Involved in FPGA Supply Chain Management 36

6 Global FPGA Market Sizing and Forecasts, 2004-2020 37
6.1 Global FPGA Market Sales Revenues and Forecasts, 2004-2020 37

7 Global FPGA Market Analysis and Forecast Based on Geography, 2004-2020 39
7.1 Americas FPGA Market 40
7.1.1 Americas FPGA Market Sizing and Forecasts, 2004-2020 40
7.1.2 Leadership in Innovation 42
7.1.3 Key Challenges 42
7.1.4 Shift to Overseas Production 42
7.1.5 Competition 42
7.1.6 Increased US Exports 42
7.2 Europe FPGA Market 43
7.2.1 Europe FPGA Market Sizing and Forecasts, 2004-2020 43
7.2.2 Research & Development Initiatives 45
7.2.3 Challenges to Address in the Industry 45
7.3 Japan FPGA Market 46
7.3.1 Japan FPGA Market Sizing and Forecasts, 2004-2020 46
7.3.2 Challenges in the Japanese FPGA Market 48
7.3.3 Assembling and Packaging 48
7.4 Asia-Pacific (APAC) FPGA Market 49
7.4.1 Asia-Pacific FPGA Market Sizing and Forecasts, 2004-2020 49
7.4.2 China FPGA Market 52
7.4.3 South Korea FPGA Market 56
7.4.4 Taiwan FPGA Market 58
7.4.5 Rest of Asia-Pacific Region FPGA Market 60

8 Global FPGA Market Analysis and Forecast Based on End User Consumption 62
8.1 Global FPGA Market in Communications Applications, 2004-2020 63
8.2 Global FPGA Market in Consumer Electronics Applications, 2004-2020 65
8.3 Global FPGA Market in Automotive Applications, 2004-2020 67
8.4 Global FPGA Market in Industrial Applications, 2004-2020 69
8.5 Global FPGA Market in Data Processing Applications, 2004-2020 71
8.6 Global FPGA Market in Military & Aerospace Applications, 2004-2020 73

9 Global FPGA Market, Competitive Landscape 75
9.1 Global FPGA, Market Share Analysis, 2009 75

10 Global FPGA, Key Players 78
10.1 Xilinx, Inc. 78
10.1.1 Xilinx, Inc. - Company Overview 78
10.1.2 Xilinx, Inc. - Business Description 78
10.1.3 Xilinx, Inc. - Major Products and Services 80
10.1.4 Xilinx, Inc. - FPGA Products Overview 81
10.1.5 Xilinx, Inc. - SWOT Analysis 83
10.1.6 Xilinx, Inc. - Strengths 83
10.1.7 Xilinx, Inc. - Weakness 84
10.1.8 Xilinx, Inc. - Opportunity 84
10.1.9 Xilinx, Inc. - Threats 85
10.2 Altera Corporation 85
10.2.1 Altera Corporation - Company Overview 86
10.2.2 Altera Corporation - Business Description 86
10.2.3 Altera Corporation - Major Products and Services 87
10.2.4 Altera Corporation - FPGA Products Overview 88
10.2.5 Altera Corporation - SWOT 88
10.2.6 Altera Corporation - Strengths 89
10.2.7 Altera Corporation - Weakness 89
10.2.8 Altera Corporation - Opportunities 90
10.2.9 Altera Corporation - Threats 90
10.3 Lattice Semiconductor Corporation 91
10.3.1 Lattice Semiconductor Corporation - Company Overview 91
10.3.2 Lattice Semiconductor Corporation - Business Description 91
10.3.3 Lattice Semiconductor Corporation - Major Products and Services 92
10.3.4 Lattice Semiconductor Corporation - FPGA Products Overview 93
10.3.5 Lattice Semiconductor Corporation - SWOT 93
10.3.6 Lattice Semiconductor Corporation - Strengths 93
10.3.7 Lattice Semiconductor Corporation - Weakness 94
10.3.8 Lattice Semiconductor Corporation - Opportunities 94
10.3.9 Lattice Semiconductor Corporation - Threats 94
10.4 Microsemi/Actel Corporation 95
10.4.1 Microsemi/Actel Corporation - Company Overview 95
10.4.2 Microsemi/Actel Corporation - Business Description 95
10.4.3 Microsemi/Actel Corporation - Major Products and Services 97
10.4.4 Microsemi/Actel Corporation - FPGA Products Overview 98
10.4.5 Microsemi/Actel Corporation - SWOT 99
10.4.6 Microsemi/Actel Corporation - Strengths 99
10.4.7 Microsemi/Actel Corporation - Weakness 99
10.4.8 Microsemi/Actel Corporation - Opportunities 100
10.4.9 Microsemi/Actel Corporation - Threats 100

11 Appendix 101
11.1 About GBI Research 101
11.2 Market Definitions 101
11.2.1 Geographies Covered 101
11.2.2 End User Types covered 101
11.3 Abbreviations 102
11.4 Methodology 103
11.4.1 Market Size Estimates 104
11.4.2 Market Size Forecasts 105
11.4.3 Breakdown Estimates 105
11.4.4 Market Share Estimates 105
11.4.5 Coverage 105
11.4.6 Secondary Research 106
11.4.7 Primary Research 106
11.4.8 Expert Panel Validation 106
11.5 Contact Us 107
11.6 Disclaimer 107

List of Tables

Table 1: FPGA End User Applications, 2010 11
Table 2: FPGA market, Key Growth Drivers, 2009 11
Table 3: Logic Elements used in Largest FPGAs 15
Table 4: FPGA market, Key Industry Challenges, 2009 18
Table 5: FPGA market, Key Market Barriers, 2009 20
Table 6: Impact Of Industry Rivalry On FPGA Industry 22
Table 7: Impact Of Bargaining Power Of Buyers On FPGA Industry 23
Table 8: Impact Of Bargaining Power Of Suppliers On FPGA Industry 24
Table 9: Impact Of Threat Of New Entrants On FPGA Industry 25
Table 10: Impact Of Availability of Substitutes On FPGA Industry 26
Table 11: FPGA Supply Chain Stages 27
Table 12: FPGA IP Provider, 2009 29
Table 13: FPGA Design Tool Vendor, 2009 29
Table 14: Semiconductor Manufacturing Equipment Vendor, 2009 30
Table 15: Key Silicon Supplying Companies, 2009 31
Table 16: Key Wafer Suppliers, 2009 31
Table 17: Key Testing Companies, 2009 33
Table 18: Top Packaging Material Suppliers, 2009 34
Table 19: Key Distributors Of ICs, 2009 34
Table 20: Key OEMs And ODMs For PC Market, 2009 35
Table 21: Key OEMs and ODMs For Communication Market, 2009 35
Table 22: FPGA Market, Global, Sales Revenue ($bn), 2004-2020 38
Table 23: FPGA Market, Americas, Sales Revenue ($bn), 2004-2020 41
Table 24: FPGA Market, Europe, Sales Revenue ($bn), 2004-2020 44
Table 25: FPGA Market, Japan, Sales Revenue ($bn), 2004-2020 47
Table 26: FPGA Market, Asia-Pacific, Sales Revenue ($bn), 2004-2020 51
Table 27: FPGA Market, China, Sales Revenue ($m), 2004-2020 53
Table 28: FPGA Market, South Korea, Sales Revenue ($m), 2004-2020 57
Table 29: FPGA Market, Taiwan, Sales Revenue ($m), 2004-2020 59
Table 30: FPGA Market, Rest of Asia-Pacific, Sales Revenue ($m), 2004-2020 61
Table 31: FPGA Market, Global, Communication Application, Sales Revenue ($bn), 2004-2020 64
Table 32: FPGA Market, Global, Consumer Electronics Application, Sales Revenue ($bn), 2004-2020 66
Table 33: FPGA Market, Global, Automotive Application, Sales Revenue ($bn), 2004-2020 68
Table 34: FPGA Market, Global, Industrial Application, Sales Revenue ($bn), 2004-2020 70
Table 35: FPGA Market, Global, Data Processing Application, Sales Revenue ($bn), 2004-2020 72
Table 36: FPGA Market, Global, Military & Aerospace Application, Sales Revenue ($bn), 2004-2020 74
Table 37: FPGA Market, Global, Competitive Landscape, 2009 75
Table 38: FPGA Market, Competitor Array, 2009 77
Table 39: Xilinx, Inc., Key Facts, 2009 78
Table 40: Xilinx, Inc., Major Products and Services, 2009 80
Table 41: Xilinx FPFA family Comparison, 2010 82
Table 42: Xilinx Inc., SWOT Analysis, 2009 83
Table 43: Altera Corporation, Key Facts, 2009 85
Table 44: Altera Corporation, Major Products and Services, 2009 87
Table 45: Altera FPFA family Comparison, 2010 88
Table 46: Altera Corporation, SWOT Analysis, 2009 88
Table 47: Lattice Semiconductor Corporation, Key Facts, 2009 91
Table 48: Lattice Semiconductor Corporation, Major Products and Services, 2009 92
Table 49: Lattice Semiconductor FPFA family Comparison, 2010 93
Table 50: Lattice Semiconductor Corporation, SWOT Analysis, 2009 93
Table 51: Microsemi/Actel Corporation, Key Facts, 2009 95
Table 52: Microsemi/Actel Corporation, Major Products and Services, 2009 97
Table 53: Microsemi/Actel FPFA family Comparison, 2010 98
Table 54: Microsemi/Actel Corporation, SWOT Analysis, 2009 99
Table 55: Global FPGAs, Abbreviations 102

List of Figures

Figure 1: FPGA Classification, Design Technology 9
Figure 2: Principal Advantages and Disadvantages of FPGA Design Technologies 10
Figure 3: Display Interface Bandwidth Requirements 14
Figure 4: Time to Market: Design Cycle, 2009 16
Figure 5: FPGA vs. ASICs, Profit Potential, 2009, 17
Figure 6: FPGA Industry Analysis 21
Figure 7: FPGA, Supply Chain Analysis, 2009 28
Figure 8: FPGA Manufacturing Process Steps, 2009 32
Figure 9: FPGA Industry Business Model, 2009 32
Figure 10: FPGA Market, Global, Sales Revenue ($bn), 2004-2020 37
Figure 11: FPGA Market, Global, Consumption Breakdown by Region (%), 2009 39
Figure 12: FPGA Market, Americas, Sales Revenue, ($bn), 2004-2020 40
Figure 13: FPGA Market, Europe, Sales Revenue ($bn), 2004-2020 43
Figure 14: FPGA Market, Japan, Sales Revenue ($bn), 2004-2020 46
Figure 15: FPGA Market, Asia-Pacific, Revenue Share by Key Country (%), 2009 49
Figure 16: FPGA Market, Asia-Pacific, Sales Revenue ($bn), 2004-2020 50
Figure 17: FPGA Market, China, Sales Revenue ($m), 2004-2020 52
Figure 18: FPGA Market, Korea, Sales Revenue, ($m), 2004-2020 56
Figure 19: FPGA Market, Taiwan, Sales Revenue, ($m), 2004-2020 58
Figure 20: FPGA Market, Rest of Asia-Pacific, Sales Revenue ($m), 2004-2020 60
Figure 21: FPGA Market, Global, Market Share by Application, Sales Revenue (%), 2009 62
Figure 22: FPGA Market, Global, Communication Application, Sales Revenue ($bn), 2004-2020 63
Figure 23: FPGA Market, Global, Consumer Electronics Application, Sales Revenue ($bn), 2004-2020 65
Figure 24: FPGA Market, Global, Automotive Application, Sales Revenue ($bn), 2004-2020 67
Figure 25: FPGA Market, Global, Industrial Application, Sales Revenue ($bn), 2004-2020 69
Figure 26: FPGA Market, Global, Data Processing Application, Sales Revenue ($bn), 2004-2020 71
Figure 27: FPGA Market, Global, Military & Aerospace Application, Sales Revenue ($bn), 2004-2020 73
Figure 28: FPGA Market, Global, Market Share by Revenue, 2009 76
Figure 29: FPGA Market, Sales Revenue Estimation Methodology 104

Companies Mentioned

Xilinx, Inc.
Altera Corporation
Lattice Semiconductor Corporation
Microsemi/Actel Corporation

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