Increasing government investments and rising demand for FPGA in automotive and data center sectors to boost market in the country.
The FPGA market in US is experiencing high growth due to economic stability of the country, leading technologies, and increased demand in computing solutions across different sectors. Major players such as Advanced Micro Devices, Inc., Intel Corporation, Microchip Technology, and Lattice Semiconductor Corporation in the region create competitive advantages for the expansion of FPGA market. Rising military spending is an important growth driver, with substantial budget allocated to FPGA-based military communication systems, radar, signal processing, and cybersecurity. US military spending, for example, reached USD 820 billion in 2023 with ongoing investments in edge computing and AI-enabled systems that employ FPGAs. These factors point to the importance of FPGAs in supporting the nation's technological superiority and security initiatives.
Another key driver of the FPGA market is the expansion of the US data center industry. With nearly 1,974 operational data centers, the US accounts for 33% of the global total, as the Data Center Map states. Data centers are widely adopting FPGAs to improve high-bandwidth connections, process large-scale data storage, and increase the computational efficiency. These capabilities make FPGAs an essential component for handling important applications like big data analytics and cloud services. The widespread network of data centers as well as increasing demand for advanced computation create new opportunities for local FPGA providers to scale up their solutions.
The US automotive sector is using FPGAs for applications such as Advanced Driver Assistance Systems (ADAS), sensor fusion, battery management, and infotainment systems. FPGA solutions are being implemented by leading manufacturers such as Tesla, Ford, and General Motors to process in real time the data of multiple sensors for enhanced vehicle safety and efficiency. In 2023, the US automotive industry produced over 10.6 million vehicles, with 6% year-on-year growth. The increasing adoption of autonomous and electric vehicle applications, is expected to drive FPGA demand further in automotive industry.
Robotics and industrial automation are transforming the US manufacturing sector, with FPGA playing a key role. The rise in robotic startups such as Bright Machines and RightHand Robotics represents increasing emphasis on smart factories, sensor automation and AI-driven robotics. FPGA technology is being leveraged by these startups for developing robust hardware-software ecosystems for industrial automation.
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Government fundings and research programs further boost the growth of the FPGA market. In February 2023, DARPA granted USD 25 million to develop an FPGA-based radar system that would be more flexible and agile than existing systems. Such investments reflect the commitment of the US government to develop FPGA technology. With strong governmental support and the presence of leading market players, the US is in a good position to retain its leadership in FPGA technology and to capitalize on emerging opportunities in the global market.