New York, Jan. 08, 2024 (GLOBE NEWSWIRE) -- According to Market.us, The global semiconductor market size is poised for significant growth, reaching USD 673.1 Billion in 2024. The sales are expected to witness a robust CAGR of 8.8% from 2023 to 2032. By 2032, the semiconductor demand is anticipated to reach a valuation of USD 1,307.7 Billion.

Semiconductors are electronic components that play a fundamental role in modern technology. They are made from materials with intermediate electrical conductivity, allowing them to control and amplify electrical signals. Semiconductors serve as the building blocks of integrated circuits (ICs) and are vital for the functioning of various electronic devices, ranging from smartphones and computers to industrial machinery and automobiles.

In recent years, the semiconductor industry has witnessed substantial growth, a trend attributable to increasing demand for electronics, advancements in technology, and the widespread adoption of Internet of Things (IoT) devices. The surge in remote work and learning during the pandemic also catalyzed an uptick in demand for semiconductors, fueling further market expansion.

Click to Request Sample Report and Drive Impactful Decisions:  https://market.us/report/semiconductor-market/request-sample/

Key Statistics

• The global Semiconductor Market is projected to reach a valuation of USD 1,307.7 billion by 2032, growing at a CAGR of 8.8% from 2023 to 2032.
• The MPU and MCU (Microprocessor Unit and Microcontroller Unit) segment holds a significant share of 34.0% due to their extensive use in devices like notebooks, desktops, laptops, and personal computers.
• Silicon is the dominant source material, accounting for 46.5% of the market due to its stability and versatility in creating gates, circuits, and switches.
• The 16/14nm node size dominates the market with a substantial share of 28.0%, though the industry is moving towards even smaller node sizes.
• The telecommunications sector holds the largest share (37.0%) due to the increasing need for remote work. Data processing, consumer electronics, and the automotive industry are also significant segments.
• Asia-Pacific accounts for 51.5% of the global semiconductor market and is a driving force in its expansion.
• Notable companies in the semiconductor industry include NXP Semiconductors, MediaTek Inc., TOSHIBA Corporation, Infineon Technologies, Advanced Micro Devices, Inc. (AMD), Samsung Electronics Co Ltd, SK Hynix Inc, and Intel Corporation, among others.

Factors Affecting the Growth of the Semiconductor Market

The global semiconductor market has experienced massive growth in recent years and is expected to continue expanding significantly in the future. There are several factors that are driving the growth of this market:

• The semiconductor market experiences growth propelled by technological advancements and ongoing innovation. Manufacturers, in a dynamic industry, focus on producing smaller, faster, and more efficient semiconductors. Progress in artificial intelligence, Internet of Things, autonomous vehicles, and 5G networks presents opportunities, fueling demand for advanced semiconductor solutions.
• The semiconductor market is propelled by increasing demand for electronic devices in diverse industries. The surge in smartphones, tablets, laptops, smart home devices, and wearables drives the requirement for semiconductors. Moreover, sectors like automotive, healthcare, industrial automation, and aerospace heavily depend on semiconductor components for electronic systems. The continuous growth of the consumer electronics market and the widespread integration of electronics in various applications contribute significantly to the semiconductor industry's expansion.
• The semiconductor market is propelled by the surge in cloud computing and the expansion of data centers. The growing adoption of cloud services and the exponential rise in global data generation necessitate high-performance processors, memory chips, and other semiconductor components to facilitate data processing, storage, and networking capabilities. Anticipated growth in demand for semiconductors within data centers and cloud infrastructure is expected to persist with the continuous expansion of the digital economy.Automotive industry's shift towards electric and autonomous vehicles, in-vehicle infotainment and ADAS is leading to rising semiconductor content per vehicle. This is boosting automotive semi demand.
  
• The semiconductor market experiences growth propelled by the emergence of new technologies and applications. Innovations such as autonomous vehicles, augmented reality (AR), virtual reality (VR), and the Internet of Things (IoT) create a demand for specialized semiconductor components to enable these advancements. As diverse applications and industries adopt semiconductors to meet their specific requirements, the market expands accordingly.
• Government initiatives and investments to advance domestic semiconductor capabilities, especially in the US and Europe, will also support market growth.
  

Get deeper insights into the market size, current market scenario, future growth opportunities, major growth driving factors, the latest trends, and much more. Buy the full report here

For instance, 

• The presence of major automotive players like GM, Honda, Nissan, Renault, and Toyota in China has made the region susceptible to the substantial ramifications of the unanticipated Covid-19 epidemic. According to UNCTAD estimates, China's export of automobile parts to fellow automakers in the European Union is poised for a ~2% reduction. Additionally, the United States, South Korea, Japan, and various other nations could collectively witness a substantial ~7 billion USD decrease in car exports to the global market.
• SK Hynix, the world's second-largest memory chip manufacturer, is advancing its plans to construct a ~USD 15 billion semiconductor chip facility in the United States. The impetus behind this strategic move is attributed to the U.S. CHIPS Act, which has allocated USD 52.8 billion in federal incentives to encourage the localization of advanced chip production within the country.

Top Trends in the Global Semiconductor Market

• Increased Demand for High-Performance Computing (HPC): The growth of data-intensive sectors like artificial intelligence, machine learning, and big data analytics has spurred demand for semiconductors that can deliver higher computational power and speed.
• Advancements in IoT and Connectivity: The proliferation of Internet of Things (IoT) devices and the advent of 5G technology are creating a need for more advanced and energy-efficient semiconductors to support enhanced connectivity and functionality.
• Rising adoption of AI - Artificial intelligence and machine learning is being widely incorporated by chipmakers to improve manufacturing, design testing and marketing.
• Edge Computing: With the rise of edge computing, there is a growing demand for semiconductors that enable local data processing and analysis at the edge of the network. Edge devices require high-performance chips with low power consumption and AI capabilities. Semiconductor companies are developing edge computing-specific chips to meet the requirements of this decentralized computing paradigm.
• Growing demand for sensors - MEMS and other sensor chips are in high demand for consumer devices, IoT, biomedical apps, drones, robotics etc.
• Automotive Electronics: The automotive industry is increasingly relying on semiconductor technology for advancements in areas like electric vehicles, autonomous driving, and advanced driver-assistance systems (ADAS). The demand for semiconductors in automotive applications is expected to grow rapidly, driven by the need for high-performance computing, connectivity, and sensor integration.

Regional Analysis

In 2023, APAC held a dominant market position in the semiconductor market, capturing more than a 51.5% share. This substantial lead is largely attributed to the significant manufacturing and technological advancements found in countries like South Korea, China, and Taiwan. The region benefits from robust electronics production, a skilled workforce, and substantial investments in research and development.

North America also plays a critical role, particularly in semiconductor design and innovation, with the United States being home to major players and cutting-edge research institutions. Europe, while holding a smaller market share, is focusing on specialized semiconductor applications in automotive and industrial sectors, emphasizing quality and precision.

Latin America, although an emerging player, is witnessing growth in consumer electronics and automotive sectors, contributing to a gradual increase in semiconductor demand. Lastly, the Middle East and Africa are steadily making their mark, with investments in technology infrastructure and smart city projects driving the need for advanced semiconductors. Each region's unique market dynamics, from APAC's manufacturing stronghold to Europe's specialized applications, together shape the global landscape of the semiconductor industry.

Purchase the Competition Analysis Dashboard Today:  https://market.us/purchase-report/?report_id=105940

Things to know

Report Attributes	Details
Current state (2023)	US$ 625.2 Billion
Dimensions Value 2032	US$ 1,307.7 Billion
CAGR (2023 to 2032)	8.8%
Asia-Pacific Revenue Share	51.5%
Biggest market	Telecommunication sector
Base Year	2023
Historic Period	2018 to 2022
Function	Semiconductor firms invest heavily in R&D
Leader	Nvidia (November 2023)
Biggest Challenges in 2023	Declining revenue, Reduced capital expenditure
Growth	The rise of artificial intelligence (AI), the Internet of Things (IoT), and machine learning (ML) technologies

Competitive Landscape

The competitive landscape of the Market has also been examined in this report. Some of the major players include:

• NXP Semiconductors,
• MediaTek Inc.
• TOSHIBA Corporation
• Infineon Technologies
• Advanced Micro Devices, Inc.
• Maxim Integrated Products Inc.
• Samsung Electronics Co Ltd
• SK Hynix Inc.
• Intel Corporation
• Analog Devices Inc.
• QUALCOMM Incorporated
• Taiwan Semiconductors
• Broadcom Inc.
• Micron Technology Inc.
• Texas Instruments Inc.
• NVIDIA Corporation

Get PDF Sample for Technological Breakthroughs@  https://market.us/report/semiconductor-market/request-sample/

Report Segmentation of the Semiconductor Market

By Component Analysis

In 2023, the MPU (Microprocessor Unit) and MCU (Microcontroller Unit) segment held a dominant market position, capturing more than a 34% share of the semiconductor market. This substantial portion underscores the pivotal role these components play in a wide array of technological applications, from consumer electronics to automotive systems. The MPU, essentially the brain of computers and similar devices, has witnessed significant demand due to the surge in smart device usage and complex computing needs. Similarly, MCUs, which find extensive applications in embedded systems, have seen an uptick in demand driven by the growth of the Internet of Things (IoT) and automation technologies.

By Source

In 2023, the Silicon segment held a dominant market position in the semiconductor market, capturing more than a 46.5% share. This prominence is attributed to silicon's widespread availability, cost-effectiveness, and well-understood properties, making it the standard material in semiconductor manufacturing. Its versatile nature allows for a wide range of applications, from microprocessors and memory devices to solar cells, underlining its crucial role in the modern technology landscape.

By Node Size

In 2023, the 16/14nm segment held a dominant market position in the semiconductor market, capturing more than a 28.0% share. This node size, representing a middle ground in the balance between performance, cost, and power efficiency, has become particularly popular for a wide range of applications, including mainstream consumer electronics and some high-performance computing systems. Its widespread adoption is driven by its ability to offer a significant improvement over older, larger nodes while still being relatively cost-effective compared to the cutting-edge smaller nodes.

Application Analysis

In 2023, the Telecommunication segment held a dominant market position in the semiconductor market, capturing more than a 37.0% share. This significant portion is indicative of the critical role semiconductors play in facilitating global communication networks. From smartphones to satellite communications, the demand for advanced semiconductor solutions in this sector is driven by the ongoing need for faster data transmission, increased connectivity, and the expansion of 5G networks. The continuous innovation in this field underscores the segment's importance in an increasingly connected world.

Driving Factors:

1. Surge in Electronic Device Usage: The increasing global demand for electronic devices like smartphones, laptops, and smart home gadgets has significantly driven the need for advanced semiconductors to power these technologies.
2. Automotive Industry Revolution: With the advent of electric vehicles (EVs) and autonomous driving technology, there's a growing requirement for semiconductors to support these complex systems.
3. Technological Advancements: Continuous innovation in semiconductor manufacturing processes, such as the development of smaller, more efficient chips, is propelling market growth.
4. Growth of IoT and AI: The proliferation of the Internet of Things (IoT) and Artificial Intelligence (AI) technologies has led to increased demand for sophisticated semiconductors capable of supporting these advanced applications.

Restraining Factors:

1. High Manufacturing Costs: The cost of setting up semiconductor manufacturing facilities with the latest technology is exceedingly high, limiting market entry and expansion.
2. Supply Chain Disruptions: Geopolitical tensions and trade disputes can lead to significant supply chain disruptions, affecting the availability and cost of semiconductors.
3. Complexity in Design and Fabrication: As technology advances, the design and fabrication of semiconductors become more complex and challenging, requiring significant R&D investment.
4. Rapid Technological Obsolescence: The fast pace of technological advancement means semiconductors can quickly become outdated, posing a risk for manufacturers investing in long-term production capacities.

Growth Opportunities:

1. Expansion into Emerging Markets: Increasing digitalization in emerging markets presents a significant growth opportunity for the semiconductor industry.
2. Smart Cities and Infrastructure: As cities worldwide become 'smarter' with more connected devices and systems, the demand for advanced semiconductors in infrastructure will grow.
3. Healthcare Advancements: The growing use of technology in healthcare, including wearable devices and telemedicine, offers new avenues for semiconductor applications.
4. Energy-Efficient Solutions: There's a growing demand for energy-efficient semiconductors in various sectors, driven by a global emphasis on sustainability and reducing carbon footprints.

Challenges:

1. Intellectual Property Issues: Navigating the complex web of patents and intellectual property rights in semiconductor technology can be challenging and litigious.
2. Environmental Concerns: Semiconductor manufacturing can be resource-intensive and polluting, leading to regulatory and environmental challenges.
3. Technical Workforce Shortage: The highly specialized nature of semiconductor manufacturing and design requires a skilled workforce, which is in short supply in many regions.
4. Market Saturation: Certain segments of the semiconductor market are nearing saturation, making it difficult for companies to maintain growth and profitability.

Key Market Trends:

1. Miniaturization of Semiconductors: The trend towards smaller, more powerful semiconductors continues to drive innovation and market dynamics.
2. Integration of Semiconductors with AI: Increasing integration of AI into semiconductor technology is leading to smarter, more efficient chips capable of on-device AI processing.
3. Focus on Semiconductor Recycling: As environmental concerns grow, there's a rising trend in recycling and reusing semiconductor materials to reduce waste and conserve resources.
4. Global Shift in Production: Shifting geopolitical landscapes and trade policies are influencing a global shift in semiconductor manufacturing and supply chains, with a notable move towards diversification away from traditional hubs.

Market Segments

By Component Analysis

• Memory devices
• Logic devices
• Analog IC
• MPUs
• MCUs
• Other Components

By Source

• Silicon
• Germanium
• Gallium arsenide
• Other Sources

By Node Size

• 32/28nm
• 16/14nm
• 10/7/5nm
• 65nm
• 5nm
• Other Node Sizes

By Application

• Telecommunication
• Data Processing
• Industrial
• Consumer Electronics
• Automotive
• Other Applications

Key Regions and Countries Covered in this Report:

• North America
  • The US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Russia
  • Netherlands
  • Rest of Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • New Zealand
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA 

Recent Developments

• In May 2023, Purdue University formalized a pivotal agreement with the leadership of the India Semiconductor Mission, marking the second noteworthy international collaboration announced within that month.
• In February 2023, the US Semiconductor Industry Association (SIA) and the India Electronics and Semiconductor Association (IESA) expressed their aspiration to enhance public-private cooperation within the chip ecosystem.

Explore More Reports

• Aircraft Micro Turbine Engines Market is anticipated to be USD 4.0 billion by 2033. It is estimated to record a steady CAGR of 5.7%.
• Catalog management system market is expected to witness substantial growth, reaching USD 13.2 billion by 2033 with a projected CAGR of 10.2%
• Edge Analytics Market Projected to Lead to USD 95.0 Bn by 2032, North America leads contributing to more than 34.0% of total revenue.
• Open Banking Market is expected to witness substantial growth, reaching USD 203.8 billion by 2033, with a projected CAGR of 23.3%
• Mobility as a Service Market is projected to be worth USD 2,313.2 million by 2033, grow at 13.5% from 2024 to 2033.
• Cyber Insurance Market is poised to reach USD 90.6 Bn by 2033, growing at a CAGR of 22.3% during forecast period 2023-2033.
• Power Sockets Market is predicted to expand from USD 5,586.2 billion in 2023 to USD 8,850.8 billion by 2032; CAGR of 5.4%.
• Industrial Internet Of Things (IIoT) Market size is expected to be worth around USD 758.8 billion by 2033 from USD 212.0 billion in 2023.
• Generative AI in Business Market size was valued at USD 1.2 billion in 2022 and is expected to grow at a CAGR of 33.5%.
• Digital Currency Market size is expected to be worth around USD 76.9 Bn by 2032 from USD 25.2 Bn in 2022, growing at a CAGR of 12.13%

About Us 

Market.US (Powered by Prudour Pvt Ltd) specializes in in-depth  market research and analysis and has been proving its mettle as a consulting and customized market research company, apart from being a much sought-after syndicated market research report-providing firm. Market.US provides customization to suit any specific or unique requirement and tailor-makes reports as per request. We go beyond boundaries to take analytics, analysis, study, and outlook to newer heights and broader horizons.

Follow Us On  LinkedIn  Facebook  Twitter

Our Blogs: 

• https://medicalmarketreport.com/
• https://chemicalmarketreports.com/
• https://techmarketreports.com/

Global Business Development Team - Market.us
Market.us (Powered By Prudour Pvt. Ltd.)
Email: inquiry@market.us
Address: 420 Lexington Avenue, Suite 300,
New York City, NY 10170, United States
Tel: +1 718 618 4351
Website: https://market.us/