The global 3D semiconductor packaging market to grow at a CAGR of 16.27% during the period 2016-2020.
Recent technology advances along with improved durability, reduced energy consumption, superior performance, enhanced quality, and highly efficient features of 3D semiconductor packaging equipment are making this equipment attractive packaging proposition in the semiconductor industry, especially in the consumer electronics industry. The increasing demand for consumer electronics is expected to increase the revenue of the global 3D semiconductor packaging market during the forecast period.
The report covers the present scenario and the growth prospects of the global 3D semiconductor packaging market for 2016-2020. To calculate the market size, the report considers revenue generated from the sales of 3D semiconductor packaging equipment to semiconductor component manufacturers.
One trend which is impacting market growth positively is the short replacement cycle of portable electronic devices. At present times, mobile devices such as tablets and smartphones have a tendency to become obsolete in a short period. Manufacturers launch subsequent models of their devices in every 12 months, cannibalizing the existing mobile device market. With the replacement period of product reduced to 8-12 months, the demand for semiconductor wafers that are used in electronic devices is expected to rise drastically.
According to the report, a key growth driver is the need to control chip design costs. The increasing complexity of designing electronic devices that are required to implement technologies such as the Internet of Things (IoT) is causing a rapid rise in their designing costs. High designing costs are restricting semiconductor device manufacturers from adopting aggressive pricing strategies. In order to control their design costs and to ensure effective manufacturing of designs on the drawing board, companies such as Samsung are increasingly adopting 3D semiconductor packaging.
Further, the report states that one challenge that could restrict market growth is the high capital investment in 3D semiconductor packaging. The superior technology in the niche global 3D semiconductor packaging market demands huge capital investment from the players seeking to enter this market. As a result, the market is controlled by leading manufacturers that already have control over the global 3D semiconductor packaging market.