Superior Packaging market has 10.6% CAGR to hit $79bn in 2028

In contrast, the standard packaging market is projected to have a slower 3.2% CAGR from 2022 to 2028, with a $57.5 billion market worth in 2028.

Total, the packaging market is forecasted to develop at a CAGR of 6.9% to $136 billion in 2028.

The AP market accounted for roughly 47% of the whole IC packaging market in 2022. Its share is steadily growing as a result of numerous megatrends. 

Throughout the AP market, the Flip-Chip platform, which incorporates FCBGA ((Flip-Chip BGA) and FCCSP (Flip-Chip Chip Scale Package deal) , held a 51% market share in 2022. 

The segments anticipated to have the best income CAGR from 2022 to 2028 are ED (Embedded Die) 2.5D/3D, and flip-chip, with progress charges of 30%, 19%, and eight.5%, respectively.

“Cell & client represented 70% of the whole AP market in 2022,” says Yole’s Bilal Hachemi, “this section is projected to have a 7% CAGR from 2022 to 2028, constituting 61% of the AP income by 2028. The telecom & infrastructure section is the quickest rising, with an estimated income progress fee of round 17%. Automotive & transportation will make up 9% of the market, whereas different segments like medical, industrial, and aerospace/protection will account for 3%.”

The AP wafer’s market share is anticipated to develop from roughly 29% in 2022 to 37% in 2028. 

When it comes to models, conventional packaging holds over 94% of the market share, however AP shipments are anticipated to develop at a CAGR of about 6% from 2022 to 2028 (in quantity).

Seven gamers dominate AP, with OSATs accounting for 65.1% of AP wafers.

 OSATs broaden testing experience, whereas conventional take a look at gamers put money into packaging. 

The business sees a paradigm shift as gamers from totally different fashions enter packaging, cannibalizing OSATs’ enterprise.

 Substrate provide has been tight, impacting materials availability and resulting in prolonged supply lead occasions and worth will increase. 

Decreased demand and capability expansions could assist ease the scarcity.

Substrate suppliers put money into capability growth however face time constraints, leading to ongoing provide points for the following 2 to three years