The global panel level packaging market size to hit USD 11.13 billion by 2033, growing from USD 0.81 billion in 2025, increasing at 38.60% CAGR from 2025 to 2033.
Ottawa, Jan. 21, 2025 (GLOBE NEWSWIRE) — The global
Major Trends in the Panel Level Packaging Market
- Miniaturization of Electronic Devices: There is a strong emphasis on making consumer electronics more compact without compromising performance. However, PLP involves the integration of multiple chips onto a single panel, allowing for a more compact design, which is crucial for modern electronics.
- AI integration: The integration of AI in the panel-level packaging process boosts efficiency, accuracy, and creativity. AI algorithms analyze vast amounts of data and optimize packaging design by reducing components’ size. Apart from this, robotic automation through artificial intelligence can enhance efficiency by reducing the intensive use of manual labor, thereby streamlining the manufacturing process. Due to the increasing demand for more compact devices, electronics manufacturers are heavily using AI to meet packaging complexity while maintaining yield and quality and minimizing expenses.
- Expansion in Automotive Electronics: As vehicles become more technologically advanced, the need for high-performance, compact electronic components increases, significantly boosting the demand for advanced packaging solutions. Moreover, the rising adoption of connected car technologies and ADAS boosts the need for PLP to enable the seamless integration of sensors and processors in a compact space. PLP allows for integrating multiple chips onto a single substrate, reducing interconnects and improving the performance of electronic components.
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Insights from Key Regions
North America’s Sustain Dominance in the Market
North America dominated the panel level packaging market by holding a considerable share in 2024. This is mainly due to the rapid expansion of 5G networks across the region, increased production of electric vehicles (EVs) and autonomous vehicles, and high penetration of consumer electronic and IoT devices. The region also boasts leading semiconductor companies like Intel Corporation and NVIDIA Corporation. Moreover, the increasing investments in R&D by semiconductor companies, ongoing technological advancements, and the rising demand for high-performance electronic devices further contribute to regional market expansion.
Rising Production of Electronic Devices to Drive the Market in Asia Pacific
The panel level packaging market in Asia Pacific is expected to expand at the fastest CAGR during the forecast period. This is mainly due to the rising production and adoption of electronics devices, such as smartphones, tablets, and wearables. Countries like China and India are major contributors to regional market growth. These countries are the largest producers of smartphones in the world.
In addition, Taiwan is the largest producer of semiconductors in the world, followed by South Korea and China. China is also the world’s largest producer of automobiles. Electronics manufacturers from China and Taiwan are rapidly shifting toward advanced packaging technologies to navigate the challenges in the industry. Rising government investments to boost the production of semiconductors and the rising demand for high-performance automotive electronics further boost the regional market growth during the forecast period.
- In September 2024, Beijing Oriental Electronics (BOE) introduced a panel-level packaging substrate made of glass during BOE IPC 2024, becoming the first Chinese company to pivot from panel manufacturing to high-level packaging.
Market Opportunity
The rapid expansion of the semiconductor industry creates immense growth opportunities in the market. With the rising production of electronic devices worldwide, there is a heightened need for semiconductors. Thus, governments of various nations are investing heavily to boost the production of semiconductors to meet the overall growing demand.
Moreover, rising proliferation of technologies such as 5G, artificial intelligence (AI), autonomous vehicles, and the Internet of Things (IoT) positively impact the market. Key players operating in the panel-level packaging industry are solidifying their positions by mergers & acquisitions and investing in R&D to develop new solutions to meet the evolving customers’ needs.
Market Segmentation
By industry application, the consumer electronics segment dominated the panel level packaging market with the largest share in 2024. This is mainly due to the increased production of smart electronics and the integration of advanced technologies. Manufacturers of consumer electronics heavily use PLP to reduce interconnects and make electronic devices more compact. Increased adoption of personal communication devices, like smartphones and tablets, further bolstered the segmental growth.
Competitive Landscape
Key players competing in the panel level packaging market include Amkor Technology, AT&S (Austria Technologie & Systemtechnik AG), Deca Technologies, Intel Corporation, JCET Group, Silicon Box, Ltd., Samsung Electronics Co., Ltd., TSMC (Taiwan Semiconductor Manufacturing Company), Unimicron Technology Corp., and Onto Innovation Inc. These players are striving to bring innovations into the market and gain a competitive edge.
In September 2024, Onto Innovation Inc. announced opening the company’s Packaging Applications Center of Excellence (PACE), a first-of-its-kind facility in the U.S. dedicated to panel-level packaging (PLP) innovations. Mike Plisinski, chief executive officer of Onto Innovation, said that the PACE will develop new panel-level packaging solutions to support glass core substrates and the rapidly evolving AI landscape.
More Insights Towards Packaging:
- The IC packaging and testing market size reached US$ 82.58 billion in 2024 and is projected to hit around US$ 137.10 billion by 2034, expanding at a CAGR of 5.2% during the forecast period from 2024 to 2034.
- The global 3D CAD software market size reached US$ 11.75 billion in 2023 and is projected to hit around US$ 24.22 billion by 2034, expanding at a CAGR of 6.8% during the forecast period from 2024 to 2034.
- The global battery packaging market size reached US$ 30 billion in 2023 and is projected to hit around US$ 105.9 billion by 2034, expanding at a CAGR of 12.15% during the forecast period from 2024 to 2034.
- The global 3D rendering market size reached US$ 3.85 billion in 2023 and is projected to hit around US$ 23.78 billion by 2034, expanding at a CAGR of 18% during the forecast period from 2024 to 2034.
- The global 3D IC and 2.5D IC packaging market size reached US$ 55.17 billion in 2023 and is projected to hit around US$ 169.92 billion by 2034, expanding at a CAGR of 10.85% during the forecast period from 2024 to 2034.
- The global semiconductor & IC packaging materials market size reached US$ 39.93 billion in 2023 and is projected to hit around US$ 113.29 billion by 2034, expanding at a CAGR of 10.2% during the forecast period from 2024 to 2034.
- The global fiber bale packaging market size is estimated to reach USD 4.81 billion by 2033, up from USD 3.04 billion in 2023, at a compound annual growth rate (CAGR) of 4.79% from 2024 to 2033.
- The global bulk liquid transport packaging market size is estimated to reach USD 5.11 billion by 2033, up from USD 3.41 billion in 2023, at a compound annual growth rate (CAGR) of 4.23% from 2024 to 2033.
- The global end-of-line packaging market size is estimated to reach USD 9.50 billion by 2033, up from USD 6.14 billion in 2023, at a compound annual growth rate (CAGR) of 4.60% from 2024 to 2033.
- The global micro perforated films packaging market size is estimated to reach USD 2.90 billion by 2033, up from USD 1.84 billion in 2023, at a compound annual growth rate (CAGR) of 4.80% from 2024 to 2033.
Recent Developments
- In January 2024, SkyWater Technologies and DECA Technologies announced a new Department of Defense (DOD) effort to expand fan-out wafer level packaging (FOWLP) capabilities for government as well as commercial customers. These capabilities are made possible by a five-year Department of Defense contract awarded to Osceola County and SkyWater Florida, which is expected to fund the modernization, equipment, and construction of the Renovation Center.
- In December 2023, the Arizona Commerce Authority (ACA) invested USD 17.5 million in Arizona State University (ASU) to expand Arizona’s advanced semiconductor manufacturing capabilities. The expansion will enhance Arizona’s fan-out wafer-level packaging R&D and workforce training capabilities and drive the creation of a GaN (gallium nitride) manufacturing and research ecosystem in the state to enable technology of the future.
- In July 2023, Onto Innovation launched an Applications Center of Excellence within Onto Innovation’s Wilmington headquarters. A first-of-its-kind facility dedicated to panel-level packaging (PLP) focuses on meeting the growing demand for chiplets.
Segments Covered in the Report
By Industry Application
- Consumer Electronics
- Automotive
- Telecommunication
- Healthcare
- Others
By Region
- North America
- Europe
- Asia Pacific
- Latin America
- Middle East & Africa
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