Advanced Packaging Market: 2025 Outlook and Growth Trends

The Advanced Packaging Market is set for strong growth through 2025, rebounding from a challenging 2023 that saw a 16.3% decline due to weakened demand in consumer electronics like smartphones, PCs, and servers. As the market stabilizes, 2024 projects 3.7% growth, with a substantial 19.2% boost anticipated in 2025, driven by demand for AI-enabled devices and data center expansion requiring higher performance and I/O capabilities.

Key Market Shifts and Technology Trends

1. Pins and Package Types: After flat growth in 2023, pins-per-package are forecast to rise 11.5% in 2024, with increasing demand for BGA, LGA, CSP/WLP, and QFN packages.
2. Interconnect Evolution: In 2024, area-array bonding is expected to exceed peripheral bonding for better performance and a smaller footprint, critical for advanced electronics.
3. Leadless Packages on the Rise: Compact and cost-effective packages like WLCSP and QFN are gaining traction, ideal for IoT and wearable devices due to their size, thermal, and electrical efficiency.
4. Advanced Packaging Wafers: After a 15% drop in 2023, advanced packaging wafers will grow 10% in 2024 and 23% in 2025. Flip-chip and fan-out WLP (FO-WLP) lead this expansion, meeting high-performance computing demands.
5. Wire Bond vs. Flip-Chip: Although wire bonding dominates traditional IC packages, advanced techniques like flip-chip and FO-WLP are growing quickly, especially in high-performance applications for data centers and IoT.

Advanced packaging is poised to capture a larger share of the semiconductor landscape, driving high-performance, compact solutions for emerging technologies. For a comprehensive analysis, explore TechInsights' Advanced Packaging Market Outlook 2025.