Semiconductors Market Size
The Global Semiconductors Market reached US$ 640.6 billion in 2022 and is expected to reach US$ 1,132.8 billion by 2031, growing with a CAGR of 7.5% during the forecast period 2024-2031. The Global Semiconductors Market is a vital and rapidly evolving industry that plays a fundamental role in various sectors of the global economy.
The market for semiconductors has experienced significant growth and innovation driven by advancements in technology, increasing digitalization and the growing demand for smart and connected devices.
The U.S. is a global leader in semiconductor design and development. Many companies in Silicon Valley and other technology hubs nationwide focus on chip design, system-on-chip (SoC) development and integrated circuit design. These designs form the basis for various semiconductor products, including those used in consumer electronics, automotive and industrial applications.
In November 2020, Apple introduced its M1 chip, marking its transition from Intel-based processors to its proprietary Arm-based processors. The M1 chip, designed in-house by Apple, offers high-performance computing power and energy efficiency. It powers a range of Apple products, including MacBook Pro, MacBook Air and Mac Mini, and showcases the U.S.'s semiconductor design and development capabilities. Therefore, the U.S. accounts for more than 3/4th of the regional shares.
Market Summary
| Metrics | Details |
| CAGR | 7.5% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | Product, Material, Component, End-User, and Region |
| Regions Covered | North America, Europe, Asia-Pacific, South America and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | Asia-Pacific |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Equipment Type Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis and Other key Insights. |
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Market Dynamics
Growing Demand for Integrated Circuits
The growing demand for integrated circuits (ICs) has been a significant driver of the global semiconductors market. Integrated circuits are essential in consumer electronics devices such as smartphones, tablets, laptops, televisions and wearable devices. These devices' rising popularity and increasing functionality drive the demand for advanced integrated circuits. Consumers seek more powerful processors, memory chips, sensors, and connectivity solutions, which stimulate innovation and market growth.
On September 1, 2022, Heyday Integrated Circuits (Heyday) was fully acquired by Allegro MicroSystems, Inc. (Allegro), as it had previously been disclosed. In high-voltage wide-bandgap (WBG) semiconductor designs using silicon carbide (SiC) and gallium nitride (GaN), Heyday is a privately held company that specializes in tiny, fully integrated isolated gate drivers. Furthermore, above stated developments like mergers and acquisition drives the growth of the global semiconductors market.
Advancements in Automotive Electronics
ADAS technologies, such as adaptive cruise control, lane departure warning and automatic emergency braking, are increasingly prevalent in modern vehicles. These systems rely on various sensors, cameras, radar and LiDAR technologies, which generate vast amounts of data that need to be processed in real-time. High-performance microcontrollers, image processors and sensor interfaces are vital semiconductor components driving the market’s growth.
The development of autonomous driving technologies has accelerated the demand for semiconductors. Autonomous vehicles require many sensors, processors, artificial intelligence (AI) accelerators and high-speed communication interfaces to perceive the environment, process data and make real-time decisions. Semiconductor advancements in sensor fusion, computer vision and AI have become pivotal for autonomous driving systems.
Cyclical Nature of the Semiconductor Industry
Technological advancements in the semiconductor industry can disrupt the market dynamics and impact growth. New technologies often replace older ones, leading to demand shifts and market dynamics. For example, the transition from traditional personal computers to smartphones and tablets significantly impacted the demand for semiconductors, requiring manufacturers to adapt to new market trends.
The cyclical nature of the semiconductor industry can lead to periods of production overcapacity. During boom cycles, semiconductor manufacturers often increase their production capacities to meet the rising demand.
However, if the market subsequently experiences a downturn, excess power can lead to oversupply, price declines and margin pressures, affecting semiconductor companies' profitability and growth prospects.
Market Segment Analysis
The Global Semiconductors Market is segmented based on product, material, component, end-user and region.
Enhanced Electrical Conductivity and Customization and Control Supplement the Segmental Growth
Extrinsic semiconductors dominate the Global Semiconductor Market. To change their electrical characteristics, extrinsic semiconductors are doped with impurities. By intentionally introducing impurities, such as dopant atoms, the electrical conductivity of the semiconductor can be enhanced. This enables the creation of more efficient and high-performing electronic devices, driving the semiconductor market’s growth.
Doping extrinsic semiconductors allows manufacturers to customize and control the properties of the semiconductor materials. By carefully selecting the type and concentration of dopants, specific electrical characteristics, such as conductivity and charge carriers, can be tailored to meet the requirements of different applications.
This customization enables the development of semiconductors optimized for various electronic devices, contributing to market growth. Therefore, the extrinsic semiconductors holds for more than 60.3% of the global segmental share.
Market Geographical Share
Advanced Manufacturing Facilities and Strong Semiconductor Ecosystem Drive the Asia-Pacific Semiconductor Market
The Asia-Pacific, particularly Taiwan, South Korea and China, has established advanced semiconductor fabrication plants (fabs) equipped with cutting-edge manufacturing technologies. For example, Taiwan Semiconductor Manufacturing Company (TSMC) operates state-of-the-art fabs that produce advanced process nodes, enabling the manufacturing of high-performance and power-efficient semiconductors. These fabs are crucial in meeting the growing demand for semiconductors worldwide.
Additionally, the Asia-Pacific has become a hub for high-volume semiconductor manufacturing. With its large-scale production capabilities, the region can meet the demands of various industries, including consumer electronics, automotive, telecommunications and industrial applications.
For instance, South Korean companies such as Samsung Electronics and SK Hynix are major players in memory chip manufacturing, catering to global market needs. Therefore, the Asia-Pacific dominates the global semiconductor market with nearly half of the global market share.
Semiconductors Companies
The Major global players include Intel Corporation, Qualcomm Technologies, Inc, Texas Instruments Incorporated, Toshiba Corporation, Micron Technology, Inc., Infineon Technologies, Samsung Electronics, NVIDIA Corporation, Broadcom, Inc. and SK Hynix.
COVID-19 Impact on Market
COVID Impact
The semiconductor industry experienced disruptions in its global supply chain due to factory closures, restrictions on movement and logistical challenges during the pandemic. Lockdown measures and reduced workforce capacity affected manufacturing operations, leading to delays in production and shipment of semiconductors.
The automotive industry faced significant challenges during the pandemic, including temporary plant closures and reduced vehicle production. This led to a decline in demand for automotive semiconductors initially. However, as the industry recovered, the need for semiconductors in automotive applications increased significantly, especially for advanced driver assistance systems (ADAS) and electric vehicles (EVs).
Russia- Ukraine War Impact
The ongoing Russia-Ukraine conflict has the potential to impact the European and global semiconductors market in several ways. Geopolitical conflicts can result in the imposition of trade restrictions or sanctions.
These measures can hinder the flow of semiconductor-related goods and technologies, affecting cross-border trade and collaborations. Restrictions on the export or import of semiconductor equipment, materials or intellectual property could impact the semiconductor market.
The ongoing war may prompt countries and companies to reassess their supply chain strategies. Efforts to diversify sourcing, localize manufacturing or reduce dependence on regions affected by the conflict may accelerate. This could lead to strategic shifts in sourcing and manufacturing locations, potentially impacting the global semiconductor market dynamics.
Key Developments
- On March 6, 2023, The acquisition of SET GmbH ("SET"), longtime leaders in the development of test systems for the aerospace and defense industries and recent innovators in the power semiconductor reliability test, was announced by NI. Together, the companies will speed up the convergence of the semiconductor and transportation supply chains using power electronic materials like silicon carbide (SiC) and gallium nitrite (GaN). They will additionally reduce the time required for important, highly differentiating solutions to reach the market.
- On December 6, 2022, An extensive partnership between Samsung Electronics and NAVER Corporation was announced to develop semiconductor products designed explicitly for hyper scale artificial intelligence (AI) models. Utilising Compute Express Link (CXL), Processing-in-Memory (PIM), Processing-near-Memory (PNM) and Computational Storage from Samsung, the companies hope to combine their hardware and software resources to speed up the handling of large-scale AI workloads significantly.
- On October 26, 2022, At the 2022 Open Innovation Platform Ecosystem Forum, TSMC launched the Open Innovation Platform (OIP) 3DFabric Alliance. The new TSMC 3DFabric Alliance is the sixth OIP Alliance for TSMC and the first of its kind in the semiconductor industry.
It joins forces with partners to speed up the development and readiness of the 3D IC ecosystem, offering a full range of world-class products and services for semiconductor design, memory modules, substrate technology, testing, manufacturing and packaging.
Why Purchase the Report?
- To visualize the Global Semiconductors Market segmentation based on product, material, component, end-user and region, as well as understand key commercial assets and players.
- Identify commercial opportunities by analyzing trends and co-development.
- Excel data sheet with numerous data points of semiconductors market-level with all segments.
- PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
- Product mapping available as Excel consisting of key products of all the major players.
The Global Semiconductors Market Report Would Provide Approximately 69 Tables, 73 Figures And 212 Pages.
