Semiconductor Market size is set to grow by USD 112.8 billion from 2024-2028, Growing adoption of IoT devices boost the market, Technavio – PR Newswire
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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
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Segment Overview
This semiconductor market report extensively covers market segmentation by
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
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: [email protected]
Website: www.technavio.com/
SOURCE Technavio
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