The integrated microwave assembly market is expected to grow from USD 1.5 billion in 2022 to USD 2.0 billion by 2027; it is expected to grow at a CAGR of 6.8 % during the forecast period. The growth of the integrated microwave assembly market is expected to be driven by the rising defense expenditure globally to design advanced warfare equipment, including secure communication products and military radars. Likewise, with technological advancements and rapid growth in the adoption of 5G, the demand for integrated microwave assembly-based RF modules has increased significantly, creating lucrative opportunities for the market players.
Impact of COVID-19 on Integrated Microwave Assembly Market:
The sudden outbreak and widespread of the COVID-19 pandemic have affected the market growth, and the trend is expected to continue till the disrupted supply chains across the globe normalize. During the last few months of 2020, the semiconductor industry witnessed a shortage in supply owing to the shutdown of manufacturing units and the slowdown of logistics activities. However, swift recovery is expected in the post-pandemic period due to increasing defense expenditure, government-led initiatives for space programs, and developments in 5G infrastructure for communication.
Driver: Increasing expenditure in military & defense sector
The global political situation is likely to remain uncertain for a long period owing to the increasing disagreements between two or more nations, for instance, the oil price war between Saudi Arabia and Russia and the drawdown of the US military forces in Afghanistan, among others. To tackle this situation, the regulatory bodies of various countries are seeking higher budgets from respective governments. Although the defense budgets across the globe declined during the COVID-19 pandemic period as the governments highly focused on curbing the spread of the virus and providing emergency relief, they may foresee a substantial rise in the post-pandemic period. As the global military & defense sector is focusing on developing state-of-the-art warfare infrastructure for defense purposes in the current uncertain geopolitical conditions, the demand for integrated microwave assembly devices is increasing significantly.
Restraint: High development costs associated with integrated microwave assembly
The development costs of integrated microwave assemblies are high. The production volume of integrated microwave assembly is also substantially low, leading to high manufacturing costs. Materials used in integrated microwave assembly, including GaAs, GaN, and indium phosphate, are scarce. Besides, the limited availability of materials used in the development of integrated microwave assemblies, the use of integrated microwave assemblies in most commercial and defense applications is expensive, increasing the cost of the complete supply chain. Hence, cost acts as a major restraint for market growth.
Opportunity: Growing adoption of gallium nitride (GaN) in microwave module
Gallium Nitride (GaN) is an emerging alternative for pure silicon in the field of semiconductors and electronics due to its high brightness emission and intensity in opto-semiconductors, high-power efficiency, high-frequency handling capacity, and flexibility to be used alongside various substrates such as silicon, sapphire, and silicon carbide (SiC). Gallium nitride is a hard and mechanically stable semiconductor material with a wide bandgap and high heat capacity and thermal conductivity. With the constant developments in 5G, the adoption of GaN over silicon-based RF devices is expected to increase in different verticals, including communications, military & defense, and radar. GaN provides high efficiency in long-range communication and is power efficient.
Challenge: Device complexity
The integrated microwave assembly is a combination of active components, including transistors and tubes, and passive components, such as isolators, resistors, and filters, in electronic circuitry. Thus, design complexity makes it difficult to understand the working of the microwave products, leading to inefficient end results. Furthermore, bulky electronic circuits require high energy for efficient working and exhibit slow operations. With the rapid developments in smartphone designs, increasing cellular network requirements, and rising deployment of modern warfare infrastructure, device complexity is expected to be a major barrier in the adoption of integrated microwave assembly.
Amplifier to account for the largest market share of the integrated microwave assembly market by 2027
The amplifier is expected to hold a larger share of the integrated microwave assembly market in 2027. Amplifiers are in huge demand due to the radical developments in telecom infrastructure as the industry is shifting towards 5G technology along with the increasing penetration of 4G/LTE technology. More cell sites are required for the penetration of advanced technologies such as 5G and LTE, which leads to increased demand for base stations and backhaul equipment to service these sites. This is expected to propel the demand for amplifiers during the forecast period.
APAC to witness the highest CAGR in the integrated microwave assembly market during the forecast period
APAC is expected to witness the highest CAGR during the forecast period. The growth of the regional market can be attributed to the high adoption rate of smartphones, growing preference for high-speed mobile technologies (5G), increased use of social media and e-commerce platforms, and rising military expenditures by countries such as China, India, Japan, and South Korea.
The study involved four major activities in estimating the current size of the integrated microwave assembly market. Exhaustive secondary research was done to collect information on the market and its peer and parent markets. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the total market size. After that, market breakdown and data triangulation were employed to estimate the market size of segments and subsegments.
In the secondary research process, various secondary sources have been referred to for identifying and collecting information important for this study. These secondary sources include integrated microwave assembly journals and magazines, annual reports, press releases, and investor presentations of companies; white papers; certified publications and articles from recognized authors; and directories and databases such as Factiva, Hoovers, and OneSource.
In the primary research process, various primary sources from both supply and demand sides have been interviewed to obtain qualitative and quantitative information important for this report. The primary sources from the supply side included industry experts such as CEOs, VPs, marketing directors, technology and innovation directors, and related executives from key companies and organizations operating in the integrated microwave assembly market. After complete market engineering (including calculations regarding market statistics, market breakdown, market size estimations, market forecasting, and data triangulation), extensive primary research was conducted to gather information as well as to verify and validate the critical numbers arrived at.
Market Size Estimation
In the complete market engineering process, both top-down and bottom-up approaches have been implemented, along with several data triangulation methods, to estimate and validate the size of the integrated microwave assembly market and other dependent submarkets listed in this report.
Key players in the industry and markets have been identified through extensive secondary research.
In terms of value, the industry’s supply chain and market size have been determined through primary and secondary research processes.
All percentage shares splits, and breakdowns have been determined using secondary sources and verified through primary sources.