Semiconductor Market

Global Semiconductor market generated a revenue of USD 510 million in 2019 and is forecast to witness a CAGR of 4.22% over the forecast period (2020-2027), owing to the growing application of semiconductor components across several industries, which include IT, telecom, electronics, and automotive.

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Semiconductor Market Key Drivers 

The major factors fueling the semiconductor market includes rapid digitalization, accelerating penetration of consumer electronics such as smartphones, laptops, and tablets, along with rising urban population. The extensive temperature limits, higher electron mobility, and lower energy consumption has bolstered the application of semiconductors across various end-use industries including data processing, industrial equipment, electronics, networking, communication, and automotive, which is forecast to drive the market growth. Besides, the advent of advanced technologies including the Internet of Things, Artificial Intelligence, and Machine learning is forecast to offer enormous opportunities for the market as these technologies help memory chips to process huge data volume in less time. With the rising environmental concerns, the electric vehicles have gained immense traction among consumers, driving the adoption of semiconductors.

Moreover, increasing industrialization and increasing government investments attributed to the development of smart cities is likely to propel the demand for the semiconductors across the globe. A drastic surge in the demand for high-speed and advanced memory chips in industrial applications has bolstered the market growth. In addition, the incorporation of Internet of Things (IoT) with the consumer electronics, automotive, and industrial applications, and growing adoption of the IoT across these industries, will propel the market growth. With the emerging need to resolve the data center complications, several companies have started using the semiconductor memory chips with high storage capabilities, raising the market growth. On the other hand, the high production cost, rising cost concerned with the construction of new plant and the need for a high capital investment might are some of the major factors projected to hamper the semiconductor market size over the forthcoming years.

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Product Segment Analysis

Integrated circuits (ICs) segment is predicted to expand at a faster CAGR during the forecast period, primarily owing to the ongoing technological innovations including cloud computing and virtual reality and growing demand for ICs across the communications, data processing, and consumer electronics sectors. The market for integrated circuits is gaining traction because of the growing demand in laptops, digital cameras, and smartphones and growing trend of deploying semiconductor integrated chip for digitalization and automation will further propel the segment’s growth. The intensified research and development, like advanced driver assistance systems undertaken by various leading players of automotive vehicles, will propel the segment’s growth. Additionally, emerging need for digital IC, microcontroller sensors, and analog ICs, in automated equipment and IoT devices, is projected to expand the Semiconductor market share.

Application Segment Analysis

Automotive application is expected to witness a higher CAGR over the upcoming years, because of the growing demand for autonomous and electric vehicles and rising demand for semiconductor devices from automotive OEMs. Moreover, the increasing adoption of advanced safety systems in automobiles, like lighting, airbags, advanced driver-assistance systems (ADAS), and braking, which use several sensors and Engine Control Units (ECUs) will propel the segment’s growth. The deployment of semiconductor memory chips by automotive manufacturers for vehicle safety systems, owing to their low power usage and improved performance is forecast to expand the market growth. With the rising penetration of electric and hybrid cars, the need for semiconductor content has increased more than conventional cars, driving the segment’s growth.

Consumer electronics vertical is projected to hold a larger share over the forthcoming years, due to the increasing adoption of semiconductors across the industry because of the remarkable advantages including high endurance, low energy consumption, more storage, and better volatile memory. Moreover, the merger between consumer electronics manufacturers with technology vendors to offer better technology products to consumers, is forecast to offer enormous opportunities to the market.

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Regional – Segment Analysis:

Asia-pacific region is predicted to witness a promising growth during the forecast period. Leading players in the Asia Pacific region including Toshiba Electronic Devices & Storage Corporation and Samsung are adopting favorable market strategies to expand their offerings because of the easy availability of raw materials at a cheaper cost, which is anticipated to fuel the regional growth. Moreover, the emerging economies like China, Japan, and India are encouraging the market growth due to factors like increasing production of memory chips and consumer electronics products, rapid digitization, and accelerating adoption of high-tech gadgets.

North America market is anticipated to witness a higher CAGR driven by the intensified investments in Research & Development activities. For example, as per the Semiconductor Industry Association (SIA), the overall expenditure in R&D by US industry increased at a compound annual growth rate of 6.6 percent from 1999 to 2019. Expenditures in R&D activities by U.S. companies tend to be consistently high, regardless of cycles in annual sales, which reflects the importance of investing in R&D production. In 2019, the R&D investments totaled USD 39.8 billion. Moreover, the existence of strong telecom and automotive industry, is predicted to expand the regional growth.

Top Market Players

Various notable players in the Semiconductor market include Intel Corporation, Micron Technology, Inc., Qualcomm Technologies, Inc., Samsung Electronics Co., Ltd.¸ SK Hynix Inc., Taiwan Semiconductor, Broadcom Inc., Nvidia Corporation, ASML Holding N.V., Texas Instruments Incorporated,  among others.

Key Developments:

• • In 2021: Toshiba Electronic Devices & Storage Corporation developed a latest M4G Group of Arm Cortex-M4 Microcontrollers to provide a faster data processing products in the TXZ+TM Family Advanced Class.
  • In 2021:  the IT minister, on behalf of the Indian Central government announced the development and enhancement of the Electronics System Design and Manufacturing (ESDM) sector. The government made an investment of USD 13.4 million to bring advancement in chip design related activities in the current ongoing fiscal year.
  • In 2021: Taiwan Semiconductor Manufacturing Company along with Sony, the two leading semiconductor equipment and chips manufacturers, decided to invest USD 7 billion to establish a chip manufacturing facility in Japan. Furthermore, Sony also made an investment of USD 500 million for establishment of the facility.
  • In 2020: Toshiba Electronic Devices and Storage Corporation introduced TC78H670FTG, a new addition to its micro-stepping integrated circuit portfolio. This new IC will have the ability to drive a 128 micro-stepping motor within the power range of 2.5V to 16V.
  • In Jun 2019, Samsung entered into a strategic partnership with US based semiconductor company, AMD in ultra-low power, high-performance mobile graphics IP based on AMD Radeon graphics technologies. Under this partnership, Samsung will license AMD graphics IP and will focus on advanced graphics technologies and solutions that are important for improving innovation across mobile applications, including smartphones.
  • In Apr 2019, Intel Launched 2nd-Generation Intel Xeon Scalable processor, Intel Optane DC memory and storage solutions, and software and platform technologies to help its customers obtain more value from their data. Intel’s latest data center solutions focus on a wide range of use cases within cloud computing, network infrastructure, and intelligent edge applications, and support high-growth workloads, including AI and 5G. These products enhanced product portfolio for moving, storing, and processing data of the company.
  • In 2019, Macronix International Co., Ltd. decided to implement its ArmorFlash memory on the artificial intelligence (AI) based ADAS systems, which include NVIDIA DRIVE AGX Xavier and DRIVE AGX Pegasus, via autonomous driving solutions for enhanced quality and secured data storage.
  • The Global Semiconductor market has been segmented based on the product, application, and key region. Based on the product market is categorized into Integrated Circuits (ICs), Optoelectronics, Discrete Semiconductors, and Sensors. Based on the application, the market is segmented into Automotive, Communication, Consumer Electronics, Industrial, Data Processing, and Others.

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Key questions answered in this research report:

• • At what pace is the global Semiconductor market growing? What will be a growing trend in the future?
  • What are the key drivers and restraints in the global Semiconductor market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenue and forecast breakdowns? Which are the major regional revenue pockets for growth in the global Semiconductor market?
  • Which Product generated maximum revenues in 2019 and identify the most promising Product during the forecast period?
  • Who are the various application of the global Semiconductor market, and how are they poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?