Advanced packaging market set for growth
The global advanced packaging market is forecast to grow from $57.46 billion in 2026 to $90.11 billion by 2031, driven by chiplets, 3D integration and hybrid bonding.
The global advanced packaging market is expected to reach $90.11 billion by 2031, up from an estimated $57.46 billion in 2026, according to a new report from Mordor Intelligence. The market is forecast to expand at a compound annual growth rate of 9.42% between 2026 and 2031.
Growing demand for heterogeneous integration in AI and high-performance computing is driving adoption of chiplets, interposers, stacked-die architectures and high-density interconnect technologies.
The report highlights increasing use of 2.5D and 3D packaging to integrate logic and memory while supporting higher bandwidth and improved power efficiency. AI accelerators, data-centre processors and HPC systems are among the key applications driving this trend.
Hybrid bonding is also gaining momentum as manufacturers seek greater interconnect density and improved electrical and thermal performance.
At the same time, fan-in and fan-out wafer-level packaging are benefiting from continued demand for smaller and more highly integrated consumer devices.
Government incentives and semiconductor localisation programmes are further supporting investment in domestic advanced packaging capacity.
Initiatives including the US CHIPS and Science Act and European Chips Act are encouraging new packaging facilities, pilot lines and technology development.
Asia-Pacific remains a leading region for advanced packaging, supported by established foundry, memory, substrate and OSAT ecosystems.
North America is expanding domestic packaging capabilities, while European investment is focused on areas including heterogeneous integration and panel-level packaging.
The report identifies the combination of AI infrastructure growth, chiplet adoption and regional semiconductor investment as key factors shaping the next phase of advanced packaging development.
