Global Chiplets Market to Grow at 41.9% CAGR from 2024 to 2029

Estimated reading time: 1 minute

According to the latest study from BCC Research, "Global Chiplets Market" will reach $42.8 billion by the end of 2029, growing at a CAGR of 41.9% from 2024 to 2029.

This report focuses on five processor segments: CPUs, GPUs, FPGAs, AI-ASIC coprocessors, and APUs. It segments the market by packaging technologies such as 2.5D/3D, SiP, WLCSP, FCCSP, FCBGA and FO. The report also segments the market by end user, including enterprise electronics, consumer electronics, industrial automation, automotive, healthcare, military and aerospace. It also considers the IT, telecommunications, scientific research and gaming sectors. Covering the regions of North America, Europe, Asia-Pacific and the rest of the world (RoW), the study also examines market drivers, macroeconomic factors, and regional dynamics.

The growing demand for high-performance computing (HPC) and the expansion of 5G technology underscore the relevance of this report in today's world. The chiplet market is experiencing significant growth due to the increasing need for high-performance, energy-efficient, and modular computing solutions. As the semiconductor industry faces challenges in further scaling down transistor sizes, chiplets offer a promising solution to overcome these limitations, enabling the development of more powerful and sophisticated computing systems.

The factors driving the market include:

High-Performance Computing (HPC): HPC uses supercomputers to solve complex problems in various fields, such as research and finance. Chiplets enhance HPC by integrating multiple specialized units on a single board, improving scalability and performance for tasks such as AI and scientific simulations.

5G's Growing Need for Chiplets: 5G technology requires high-speed, low-latency communication. Chiplets provide a modular solution, integrating processing, memory, and connectivity into one package. This optimizes performance and reduces power consumption, which is essential for supporting the massive volume of data traffic and numbers of connected devices in 5G networks.