Advanced Packaging Market Size, Share, and Trends 2024 to 2034

Advanced Packaging Market Size and Forecast 2024 to 2034

The global advanced packaging market size accounted for USD 36.49 billion in 2024 and is expected to be worth around USD 82.51 billion by 2034, at a CAGR of 8.5% from 2024 to 2034.

Advanced Packaging Market Key Takeaways

• Asia Pacific led the global market with the largest market share of 65% in 2023.
• North America is expected to expand at the fastest CAGR during the forecast period.
• By Type, the fan-out wafer-level packaging (FOWLP) segment has held the largest revenue share in 2023.
• By End-use, consumer electronics dominated the global market in 2023.

Asia Pacific Advanced Packaging Market Size and Growth 2024 to 2034

The Asia Pacific advanced packaging market size was estimated at USD 21.87 billion in 2023 and is predicted to be worth around USD 53.63 billion by 2034, at a CAGR of 8.7% from 2024 to 2034.

Asia Pacific dominates the advanced packaging market contributing a market share of more than 65% in 2023 and is expected to grow at a CAGR of 8.3% during the forecast period. It is because of the presence of major market players in this region and rapid growth in demand for semiconductors across various industry verticals such as automotive, consumer electronics, aerospace, defense and many others and the Government heavy investments in building semiconductor manufacturing plants specially in the developing countries such as India, China and South Korea. All these factors drive the growth of the Advanced Packaging Market. For instance, On 29th September 2021, Taiwan Semiconductor Manufacturing Co (TSMC) announced that it is developing new advanced packaging facilities in northern Taiwan. This advanced packaging fab in Chunan will be engaged in developing system on integrated chips (SoIC) technology.

North America is also estimated to grow significantly over the forecast period owing to the development of several advanced packaging technologies such as copper hybrid bonding and wafer level packaging (WPL) and the increasing demand for IoT-connected devices, such as wearables are some of the attributes that is anticipated to drive the growth of the Advanced Packaging Market in this region. For instance, On 25th February 2021, Veeco Instruments Inc. announced plans to expand its manufacturing capabilities in San Jose, California in order to meet the increasing demand for the advanced laser annealing technology that benefits the world’s leading semiconductor technology companies. This new, SEMI-compliant facility will serve the company’s for the development and production of laser annealing and advanced packaging lithography systems for semiconductor applications.

Growth Factors

The emergence in the advanced packaging technology has minimized the installation cost of ICs and enhances the output and efficiency of ICs and this factor is expected to drive the market growth. Also, with augmentation of IC in the automobiles, the demand for advanced packaging surged and this contributed positively towards the growth of the advanced packaging market. For instance, on 10th May 2021, Veeco Instruments Inc. announced that it has received an order for its AP300 Lithography System used in the production ramp of advanced packaging chips. This advanced packaging devices will be used to meet increasing demand for 5G system-on-a-chip, graphic processors (GPUs) and high performance computing applications. The AP300 systems were selected due to its industry-leading uptime and performance along with low ownership cost. This order indicates the fostering market demand for Veeco’s lithography systems.

With the development in packaging technology, the functional density of large system-on-chip solutions has increased and this fosters the market growth. Moreover, the continuous research and developmental activities are performed in order to develop new and innovative packaging solutions and this will accelerate the growth of the advanced packaging market. Also, the rising demand for improving the performance of the electronic devices is estimated to fuel the growth of advanced packaging market. For instance, on 30th March 2021, YES (Yield Engineering Systems, Inc.), a leading manufacturer of process equipment for life sciences, semiconductor advanced packaging and AR/VR applications announced that it has received a large volume purchase order for the VertaCur XP from Taiwan-based OSAT Powertech Technology, Inc. The systems, which will be utilized for flip chip and wafer-level-packaging in high volume manufacturing, and it is expected to be delivered in the first half of 2021 to address growing production demands.

Furthermore, the surge in miniaturization of devices is assisting the embedded die packaging market gain renewed demand. Also, the heavy Government investment in developing semiconductor manufacturing plants specially in the developing nations are estimated to fuel the growth of market.

Market Scope

Type Insights

Based on the Type, the Advanced Packaging Market is divided into Flip Chip CSP, Flip-Chip Ball Grid Array, Wafer Level CSP, 5D/3D, Fan Out WLP and Others. In this segment, the Fan-out wafer-level packaging (FOWLP) product type segment is accounted for contributing a significant market share amounting in 2023 and is expected to grow significantly during the forecast period. It is because of the significant benefits it provides such as lower thermal resistance, substrate-less package and higher performance. For instance, In 11th January 2021, Veeco Instruments Inc. announced that National Chiao Tung University (NCTU), based in Hsinchu, Taiwan, has been selected Veeco to be an  important partnerin its initiative to boost the Taiwan’s semiconductor production.

End-use Insights

Based on the End-use, the Advanced Packaging Market is divided into Consumer Electronics, Automotive, Industrial, Healthcare, Aerospace & Defense and Others. In this segment, the consumer electronics is accounted for contributing a significant market share in 2023 and is expected to grow significantly during the forecast period owing to the increase in demand for consumer electronics products in the market such as mobile phones, laptops, air conditioners and many others. Also, the demand for miniaturization of the electronic devices will provide huge growth opportunities. All these factors positively impact the growth of the Advanced Packaging Market.

Advanced Packaging Market Companies

• Amkor Technology Inc.
• ASE Technology Holding Co. Ltd.
• China Wafer Level CSP Co., Ltd.
• ChipMOS Technologies, Inc.
• FlipChip International LLC
• HANA Micron Inc.
• Jiangsu Changjiang Electronics Technology Co., Ltd.

Segments Covered in the Report

By Type

• Flip Chip CSP
• Flip-Chip Ball Grid Array
• Wafer Level CSP
• 5D/3D
• Fan Out WLP
• Others

By End-use

• Consumer Electronics
• Automotive
• Industrial
• Healthcare
• Aerospace & Defense
• Others

By Geography

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • U.K.
  • Germany
  • France
  • Russia
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Rest of Asia-Pacific
• LAMEA
  • Latin America
  • Middle East
  • Africa