Semiconductor Market

Market Overview:

The global semiconductor market size reached US$ 650.2 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 1,170.4 Billion by 2032, exhibiting a growth rate (CAGR) of 6.75% during 2024-2032. The growing global focus on renewable energy sources with optimal efficiency, rising sales of electric vehicles (EVs), and the increasing use of sensors, radar systems, cameras, and processing units in autonomous vehicles are some of the major factors propelling the market.

Semiconductors are materials with electrical conductivity levels between those of conductors and insulators. They enable the operation of transistors, diodes, and integrated circuits, forming the core of computers, smartphones, and countless other devices. They allow for the miniaturization of electronic components, leading to smaller and more portable devices with increased computing power. They are used in power electronics to convert and control electrical energy, reducing energy wastage. They are also utilized in optoelectronic devices like photodetectors, laser diodes, and optical sensors for applications in telecommunications and medical devices.

The widespread deployment of 5G networks is catalyzing the demand for semiconductor components that can handle the increased data speeds and lower latency requirements. Apart from this, the rising global focus on renewable energy sources with optimal efficiency is driving the demand for semiconductor solutions in solar panels, wind turbines, and smart grid systems. Furthermore, the healthcare sector is increasingly relying on semiconductor technology for medical imaging, wearable devices, and diagnostic equipment. These applications require high-performance, low-power chips for accurate data collection, processing, and communication. Moreover, the exploration of quantum computing, with its potential to revolutionize computation, is driving the need for advanced semiconductor technology.

Semiconductor Market Trends/Drivers:

Increasing demand for advanced automotive electronics

The rising emphasis of the automotive industry on electrification, autonomous driving, and connectivity represents one of the key factors positively influencing the market. Additionally, increasing sales of hybrid and electric vehicles (HEVs) to promote environmental health is strengthening the growth of the market. Electric vehicles (EVs) require sophisticated semiconductor components, including power management systems, battery management systems, and high-performance microcontrollers. Apart from this, the increasing use of sensors, radar systems, cameras, and processing units in autonomous vehicles to navigate and make split-second decisions is offering a favorable market outlook. Moreover, the escalating demand for in-vehicle connectivity and infotainment systems is propelling the market growth.

Expansion of the Internet of Things (IoT)

The increasing demand for electronics and connectivity in consumer and industrial sectors is another major factor positively influencing the market. Additionally, rising sales of smartphones, tablets, and wearable devices with more advanced features are offering a favorable market outlook. Apart from this, the integration of the Internet of Things (IoT) devices into smart home devices and wearable health monitors is strengthening the growth of the market. Furthermore, the widespread adoption of Industry 4.0 principles, which emphasize automation, data exchange, and IoT integration in manufacturing, is catalyzing the demand for semiconductors. Moreover, the increasing reliance of renewable energy systems on semiconductor technology is driving the market.

Data center expansion and cloud computing

The expansion of data centers and the increasing reliance on cloud computing services are creating a positive outlook for the market. Additionally, the digital transformation of businesses and the proliferation of internet-connected devices is resulting in the rise of data generation. Apart from this, the increasing demands of big data analytics are encouraging semiconductor manufacturers to develop high-performance processors, memory solutions, and storage devices. These advancements enable data centers to process and analyze data more efficiently, providing businesses with the ability to make data-driven decisions, improve services, and gain a competitive edge. Moreover, data centers are incorporating artificial intelligence (AI) and machine learning (ML) to optimize their operations. AI-driven algorithms are used for tasks like data center management, resource allocation, and predictive maintenance.

Semiconductor Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global semiconductor market report, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on components, material used and end user.

Breakup by Components:

• Memory Devices
• Logic Devices
• Analog IC 
• MPU
• Discrete Power Devices
• MCU
• Sensors
• Others
   

Logic devices represent the largest market segment

The report has provided a detailed breakup and analysis of the market based on the components. This includes memory devices, logic devices, analog IC, MPU, discrete power devices, MCU, sensors, and others. According to the report, logic devices represented the largest segment as they are designed to perform logical operations, which encompass a vast array of functions critical to modern technology. Additionally, they offer versatility that enables them to find applications in numerous sectors like consumer electronics and aerospace for data processing, control systems, and communication. Apart from this, the ability of logic devices to meet the stringent requirements of diverse industries drivees their demand globally. Furthermore, they have seamlessly integrated features like low-power consumption, enhanced data processing capabilities, and compatibility with emerging technologies, such as the Internet of Things (IoT) and artificial intelligence (AI). Moreover, the compatibility of logic devices with complementary metal-oxide-semiconductor (CMOS) technology promotes its usage.

Breakup by Material Used:

• Silicon Carbide
• Gallium Manganese Arsenide
• Copper Indium Gallium Selenide
• Molybdenum Disulfide
• Others 
   

Silicon carbide accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the market based on the material used. This includes silicon carbide, gallium manganese arsenide, copper indium gallium selenide, molybdenum disulfide, and others. According to the report, silicon carbide holds the largest market share due to its superior performance compared to traditional semiconductor materials like silicon. Silicon carbide exhibits excellent thermal conductivity, allowing it to dissipate heat more effectively and is widely used for high-power applications such as power electronics and radio frequency (RF) devices, where efficient heat management is essential to prevent overheating and ensure optimal performance. Apart from this, its high thermal conductivity also contributes to longer device lifetimes. Furthermore, SiC devices have lower conduction and switching losses as compared to silicon-based devices. This lower resistance results in reduced power dissipation, which translates to higher energy efficiency. Moreover, semiconductor manufacturers can integrate SiC devices into their production lines with relative ease, minimizing the need for significant infrastructure changes.

Breakup by End User:

• Automotive
• Industrial
• Data Centre
• Telecommunication
• Consumer Electronics
• Aerospace and Defense
• Healthcare
• Others
   

Consumer electronics dominate the market

A detailed breakup and analysis of the market based on the end user has also been provided in the report. This includes automotive, industrial, data center, telecommunication, consumer electronics, aerospace and defense, healthcare, and others. According to the report, consumer electronics hold the majority of the market share as they are widely used by people worldwide. The consumer electronics category encompasses a wide range of products, from portable gadgets like smartphones and wearables to large appliances like smart TVs and refrigerators. Additionally, the widespread adoption of these devices drives consistent and high demand for semiconductor components, including microprocessors, memory chips, sensors, and connectivity modules. Apart from this, these devices rely heavily on semiconductors for connectivity, data processing, and control. Moreover, the escalating demand for more compact devices is driving the need for semiconductors to enable miniaturization while maintaining improving performance.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific exhibits a clear dominance, accounting for the largest semiconductor market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific holds the majority of the market share since the region has a highly skilled and adaptable workforce, which makes it an attractive destination for semiconductor manufacturers. The presence of well-trained engineers and technicians with expertise in semiconductor technology ensures the smooth operation and continuous advancement of semiconductor production processes. Additionally, the region is home to leading semiconductor research and development (R&D) centers and universities that support innovation and technological advancements in semiconductor manufacturing, leading to the development of cutting-edge semiconductor products. Moreover, the region has a well-established supply chain ecosystem that supports semiconductor manufacturing. This includes suppliers of raw materials, equipment, and components needed for semiconductor production.

Competitive Landscape:

Semiconductor companies are continuously investing in R&D activities to develop cutting-edge technologies, materials, and manufacturing processes. This includes the design of smaller and more efficient chips, advanced lithography techniques, and innovative materials like gallium nitride and silicon carbide. Additionally, they are expanding their manufacturing facilities to increase production capacity. This includes building new fabrication plants (fabs) and upgrading existing ones to produce semiconductor wafers with smaller nanometer nodes, which offer improved performance and energy efficiency. Moreover, they are adopting green manufacturing practices, reducing energy consumption, and exploring ways to minimize the environmental impact of semiconductor production.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Broadcom Inc.
• Infineon Technologies AG
• Intel Corporation
• Micron Technology Inc.
• NXP Semiconductors N.V.
• Renesas Electronics Corporation
• Samsung Electronics Co. Ltd.
• SK hynix Inc.
• STMicroelectronics N.V.
• Taiwan Semiconductor Manufacturing Company Limited
• Texas Instruments Incorporated
• Toshiba Electronic Devices & Storage Corporation (Toshiba Corporation)

Recent Developments:

• In August 2023, Broadcom Inc., a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, announced that it will acquire VMware, Inc. by October 30, 2023.
• In December 2022, Toshiba Electronic Devices & Storage Corporation (Toshiba Corporation) announced that it would construct a new back-end production facility for power semiconductors at its Himeji Operations – Semiconductor, in Hyogo Prefecture in western Japan.
• In April 2023, Intel Corporation said its chip contract manufacturing division will work with U.K.-based chip designer Arm Ltd to ensure that mobile phone chips and other products that use Arm’s technology can be made in the factories of Intel.

Semiconductor Market Report Scope:

Key Questions Answered in This Report: 

• How has the global semiconductor market performed so far, and how will it perform in the coming years? 
• What are the drivers, restraints, and opportunities in the global semiconductor market? 
• What is the impact of each driver, restraint, and opportunity on the global semiconductor market? 
• What are the key regional markets? 
• Which countries represent the most attractive semiconductor market? 
• What is the breakup of the market based on the components? 
• Which is the most attractive components in the semiconductor market? 
• What is the breakup of the market based on the material used? 
• Which is the most attractive material used in the semiconductor market? 
• What is the breakup of the market based on the end user? 
• Which is the most attractive end user in the semiconductor market?
• What is the competitive structure of the global semiconductor market? 
• Who are the key players/companies in the global semiconductor market? 

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the semiconductor market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global semiconductor market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the semiconductor industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.