Advanced chip packaging market size likely to grow to $79.85bn by 2032

The global advanced chip packaging market is estimated to be valued at USD 50.38 billion in 2025, and is expected to reach USD 79.85 billion by 2032, exhibiting a CAGR of 6.8% from 2025 to 2032.

The advanced chip packaging market is experiencing growth driven by the rising demand for smaller, faster, and more efficient electronic devices. The expansion of high-performance computing, 5G networks, and the Internet of Things (IoT) is further accelerating this trend. Moreover, the increasing adoption of advanced packaging technologies—such as 2.5D and 3D packaging—is expected to significantly contribute to market growth over the forecast period.

Key takeaways
According to Coherent Market Insights (CMI), the global advanced chip packaging market size is expected to grow significantly over the assessment period, totalling $50.38 billion in 2025 and $79.85 billion by 2032.

• Global advanced chip packaging demand is slated to rise at a CAGR of 6.8% between 2025 and 2032.
• Fan-out wafer-level packaging remains the most widely used type, accounting for 58.6% of the global advanced chip packaging market share in 2025.
• Asia Pacific, with an estimated market share of 53.2% in 2025, is expected to dominate the global advanced chip packaging industry.
• North America is poised to record fastest growth, capturing 29.3% of the global market share in 2025.

Rising demand for advanced compact devices spurring market growth
Coherent Market Insights’ latest advanced chip packaging market analysis outlines major factors fueling industry growth. One such key growth driver is the increasing demand for high-performance and miniaturized electronic devices.

Modern consumers and industries seek smaller, faster, and more energy-efficient electronic devices. This is expected to boost growth of the advanced chip packaging market during the forecast period.

Advanced packaging technologies like fan-out wafer-level packaging (FOWLP) and 3D/2.5D packaging are preferred over traditional packaging as they allow for heterogeneous integration. They are increasingly used to integrate multiple semiconductor chips or components into a single package.

Advanced packaging technologies have the tendency to enhance device performance, reduce power consumption, and minimize physical size of electronic devices. As demand for compact, high-performance electronic devices rises, so will adoption of advanced chip packaging.

High costs and complex manufacturing processes hampering growth
The global advanced chip packaging market outlook looks bright, owing to growing demand for powerful and miniaturized electronic devices. However, high cost and complex manufacturing processes might limit market growth to some extent during the forthcoming period.

Advanced chip packaging involves intricate design, specialized equipment, and precision engineering. This raises the overall expenses and slow down large-scale adoption, especially among smaller manufacturers, dampening overall advanced chip packaging market demand.

Penetration of emerging technologies
Adoption of advanced technologies like AI, IoT, 5G, and high-performance computing is increasing significantly in the industrial sector. This is expected to create lucrative growth opportunities for advanced chip packaging companies.

These emerging technologies require advanced packaging to efficiently integrate multiple dies or chiplets such as CPUs, GPUs, memory, and sensors. This is where advanced chip packaging like fan-out wafer-level packaging steps in, helping to meet these needs.

Market trends
Emerging trends such as miniaturization in electronic devices are promoting manufacturers to utilize advanced packaging platforms like fan-out wafer-level packaging. This is expected to boost the target market during the forecast period.

Rapid expansion of automotive, medical devices, and industrial electronics sectors will likely uplift advanced chip packaging demand. This is because these industries need reliable, compact, and high-performance packages that can withstand harsh environments. Advanced packaging technologies like 2.5D/3D packaging and FOWLP are perfect to meet these performance and reliability needs.

Rising shift towards electric vehicles and autonomous driving systems (ADAS) is creating a strong demand for robust semiconductor components. Advanced packaging helps to meet this demand by enhancing power efficiency, improving thermal management, and enabling higher performance in compact designs.

New packaging technologies, such as panel-level packaging (PLP) and system-on-wafer (SoW), are becoming promising solutions in the semiconductor industry. These novel packaging technologies aim to boost integration as well as enhance performance and improve energy efficiency in AI and data center applications.

“The global advanced chip packaging industry is set to grow steadily, owing to rising demand for miniaturized electronic devices, growing need for advanced packaging technologies, and increasing adoption of AI, IoT, and 5G applications that require higher performance and efficiency,” said Pooja Tayade, an experienced analyst at CMI.