NEW
YORK, July 12, 2024 /PRNewswire/ -- The global
semiconductor market size is estimated to grow by USD 112.8 billion from 2024-2028, according to
Technavio. The market is estimated to grow at a CAGR of
3.42% during the forecast period. Growing adoption of
iot devices is driving market growth, with a trend
towards increasing adoption of sustainability manufacturing.
However, supply-demand gap in semiconductor industry
poses a challenge. Key market players include Analog Devices
Inc., Broadcom Inc., Infineon Technologies AG, Intel Corp.,
MediaTek Inc., Microchip Technology Inc., Micron Technology Inc.,
NVIDIA Corp., NXP Semiconductors NV, ON Semiconductor Corp.,
Qualcomm Inc., Renesas Electronics Corp., Samsung Electronics Co.
Ltd., Skyworks Solutions Inc., Sony Group Corp., STMicroelectronics
International N.V., Taiwan Semiconductor Manufacturing Co. Ltd.,
Texas Instruments Inc., Toshiba Corp., and Wolfspeed Inc..
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Semiconductor Market
Scope
|
Report
Coverage
|
Details
|
Base year
|
2023
|
Historic
period
|
2018 - 2022
|
Forecast
period
|
2024-2028
|
Growth momentum &
CAGR
|
Accelerate at a CAGR of
3.42%
|
Market growth
2024-2028
|
USD 112.8
billion
|
Market
structure
|
Fragmented
|
YoY growth 2022-2023
(%)
|
3.26
|
Regional
analysis
|
APAC, North America,
Europe, South America, and Middle East and Africa
|
Performing market
contribution
|
APAC at 79%
|
Key
countries
|
China, US, Germany,
Canada, and UK
|
Key companies
profiled
|
Analog Devices Inc.,
Broadcom Inc., Infineon Technologies AG, Intel Corp., MediaTek
Inc., Microchip Technology Inc., Micron Technology Inc., NVIDIA
Corp., NXP Semiconductors NV, ON Semiconductor Corp., Qualcomm
Inc., Renesas Electronics Corp., Samsung Electronics Co. Ltd.,
Skyworks Solutions Inc., Sony Group Corp., STMicroelectronics
International N.V., Taiwan Semiconductor Manufacturing Co. Ltd.,
Texas Instruments Inc., Toshiba Corp., and Wolfspeed
Inc.
|
Market Driver
The semiconductor industry faces significant challenges in
meeting the increasing demand for semiconductors due to emerging
technologies like 5G, AI, and IoT. One fabrication plant requires
approximately 1 terawatt-hour (TWh) of energy per year and
two-to-four million gallons of ultra-pure water daily. To address
these concerns, industry leaders like Taiwan Semiconductor
Manufacturing Company (TSMC) and Intel Corporation are implementing
sustainability programs. TSMC focuses on water recycling, diverse
water sources, and pollution prevention techniques to optimize
water usage. Intel aims to conserve 60 billion gallons of water and
fund external water restoration projects by 2030, along with
achieving 100% renewable energy use and conserving 4 billion kWh of
energy. These initiatives not only help reduce environmental impact
but also enhance brand image, making sustainability a crucial part
of the semiconductor market's growth strategy.
In the semiconductor market, emerging technologies like
autonomous driving and electrification are driving demand.
Autonomous vehicles and electric vehicles require advanced
semiconductor components for autonomy and efficient power
management. The intense competition among automakers and
semiconductor companies necessitates capital investments and
manufacturing capacity expansions. Electrification and the shift
towards a sustainable future are leading to changes in demand for
essential parts like Discrete Semiconductors and Semiconductor
Devices in the Semiconductor Devices Segment. High-energy,
power-efficient devices are in high demand for wireless, portable
electronic products, and system architectures. The post-pandemic
era brings challenges like lead times, skilled labor shortages, and
supply chain disruptions. Semiconductor companies must adapt to
these changes to maintain business revenues and corporate
operations. The supply side is affected by shortages of essential
components like MOSFETs and power MOSFETs. The telecom sector, with
its focus on 5G subscriptions and Power-over-Ethernet (PoE) for
power transfer in connected lighting, is another significant market
for semiconductors. The semiconductor industry must address
manufacturing capacity constraints and customer behavior shifts to
remain competitive. Size and component count are crucial factors in
the design of efficient power management systems for AC-DC power
adapters and switching power supplies. The semiconductor industry
must innovate to meet these demands while minimizing power
consumption and ensuring reliability.
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Market Challenges
- The semiconductor market has seen a significant increase in
demand due to the expanding use of technology in various sectors.
Connected devices, artificial intelligence, machine learning, data
centers, and smart industries are key drivers of this growth.
However, this increased demand has resulted in semiconductor supply
shortages and longer lead times. Manufacturers face challenges in
meeting demand, leading to delayed chip delivery and price
increases. Transitions to new manufacturing nodes, such as 7nm and
5nm, bring production challenges and yield issues, further widening
the supply gap. These factors may impact the semiconductor market's
growth during the forecast period.
- The semiconductor market is experiencing significant challenges
in the current business landscape. Companies like Navitas
Semiconductor and Polymatech Electronics face hurdles in meeting
the increasing demand for chips in VR, 5G, and 6G technologies.
ASE/SPIL and Amkor grapple with high inventories and low fab
utilization, impacting profitability. The chip industry is under
pressure to deliver affordable, dependable, and compact
semiconductor devices for diverse electronics, from PC sales to
smartphones and data centers. Spring is essential for progress in
this sector, with memory chips and communication chips being key
areas of focus. The upcoming years will bring forthcoming
breakthroughs in semiconductor devices, including generative AI
accelerators and AI semiconductors. However, challenges persist,
such as cyberattacks, export controls, and the need for advanced
node manufacturing equipment. The semiconductor industry IP remains
a crucial aspect, with the need for smart manufacturing and
contemporary technology to ensure progress and overcome
challenges.
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Segment Overview
This semiconductor market report extensively covers market
segmentation by
- Application
- 1.1 Networking and communication
- 1.2 Data processing
- 1.3 Industrial
- 1.4 Consumer electronics
- 1.5 Others
- Product
- 2.1 ICs
- 2.2 Optoelectronics
- 2.3 Discrete semiconductors
- 2.4 Sensors
- Geography
- 3.1 APAC
- 3.2 North America
- 3.3 Europe
- 3.4 South America
- 3.5 Middle East and
Africa
1.1 Networking and communication- The
networking and communication segment is a substantial part of the
global semiconductor market, including semiconductor devices and
components used in various communication technologies and
networking infrastructures. With the growing need for efficient
communication, the demand for semiconductor solutions in this
sector continues to expand. The widespread use of smartphones,
tablets, laptops, IoT devices, and other connected devices has led
to increased data demand. Consumers and businesses seek faster and
more dependable communication, necessitating advanced semiconductor
solutions for high-speed data transmission. The rollout of 5G
technology brings the promise of significantly higher data speeds
and lower latency, enabling new applications and services, such as
enhanced mobile connectivity. 5G networks require a multitude of
semiconductor components, including RF front-end modules, baseband
processors, and antennas, fueling the demand for communication ICs.
The proliferation of IoT devices and applications, from smart homes
to industrial sensors, heavily relies on semiconductor solutions
for wireless connectivity, data processing, and energy efficiency.
The rising popularity of video streaming, online gaming, and social
media platforms places immense pressure on network bandwidth.
Semiconductor solutions play a crucial role in supporting the
efficient and reliable transmission of video content. Consequently,
the increasing demand for semiconductors is anticipated to fuel the
expansion of the networking and communication segment of the global
semiconductor market during the forecast period.
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Research Analysis
The semiconductor market is experiencing significant growth due
to the increasing demand for contemporary technology in various
industries. Artificial intelligence and the Internet of Things are
driving the market, with machine learning being a key application.
According to IDC, the global semiconductor market is expected to
reach USD1.1 trillion by 2025.
Integrated circuits, memory chips, computer chips, data center
chips, and communication chips are in high demand. B2B enterprises,
B2G enterprises, and B2C enterprises are all major consumers of
semiconductors. The semiconductor industry association reports that
semiconductor devices, electronic components, and semiconducting
materials are essential for various applications, including PC
sales, smartphones, and VAT (vehicle automation technology).
Inventories are being managed carefully to ensure profitable fab
utilization, and breakthroughs in subsequent technologies, such as
transistors and diodes, are expected to fuel further progress.
Market Research Overview
The semiconductor market is experiencing significant growth due
to the increasing adoption of artificial intelligence (AI),
Internet of Things (IoT), and machine learning technologies across
various industries. According to IDC, the global semiconductor
market is projected to reach USD1.1
trillion by 2026, driven by the digitization levels of B2B
enterprises, B2G enterprises, and B2C enterprises. The
semiconductor industry is also impacted by factors such as VAT,
exchange rates, and top-down approach vs bottom-up validation.
Companies like Navitas Semiconductor, Polymatech Electronics,
ASE/SPIL, Amkor, and others are making breakthroughs in AI
semiconductors, memory chips, and node manufacturing equipment. The
semiconductor industry is also facing challenges such as
cyberattacks, export controls, and manufacturing capacity
constraints, leading to changes in demand and customer behavior.
The forthcoming years will bring intense competition, widespread
adoption of emerging technologies like VR, 5G, and 6G, and a
sustainable future for electronics in sectors like autonomous
driving, electrification, and automakers. Skilled workers, lead
times, and capital investments are crucial factors in the
semiconductor industry's profitable operation. Affordability,
dependability, compact size, and utilization remain key
considerations for diverse electronics, from communication chips in
data centers to computer chips in PC sales and smartphones.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Application
-
- Networking And Communication
- Data Processing
- Industrial
- Consumer Electronics
- Others
- Product
-
- ICs
- Optoelectronics
- Discrete Semiconductors
- Sensors
- Geography
-
- APAC
- North America
- Europe
- South America
- Middle East And Africa
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory
company. Their research and analysis focuses on emerging market
trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
their market positions.
With over 500 specialized analysts, Technavio's report library
consists of more than 17,000 reports and counting, covering 800
technologies, spanning across 50 countries. Their client base
consists of enterprises of all sizes, including more than 100
Fortune 500 companies. This growing client base relies on
Technavio's comprehensive coverage, extensive research, and
actionable market insights to identify opportunities in existing
and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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