Fort Collins, Colorado, Feb. 27, 2024 (GLOBE NEWSWIRE) -- The Semiconductors Market size was valued at USD 526.7 Billion in 2023 and is expected to reach a market size of USD 1,411.2 Billion by 2032 at a CAGR of 11.6%.
Semiconductors have been vital to emerging technologies across healthcare, automotive, aerospace, telecommunications, and other sectors. However, semiconductors were all over the news last year about supply chain bottlenecks from cars to computers, underscoring these tiny chips' contribution to the global economy's smooth functioning. With the chip demand growing in the following years, semiconductor manufacturing companies can reap more benefits by adopting a profound approach to understanding the market position and what drives the long-term demand.
Digitalization of services and high technology penetration have accelerated the semiconductor market, with sales growing by more than 30 percent to about USD 700 million in 2022. DataHorizzon Research analysis based on aggregate annual growth could average from 7 to 9 percent annually by 2032. As a result, the industry is poised to witness a double-digit growth rate with an average price increase of about 2.5 to 3 percent amid the current volatility and balanced supply.
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Key Drivers Shaping the Market Growth:
- Remote Working and AI: The remote working trend has grown since the COVID-19 pandemic. Companies have reported increased productivity, high employee retention, and sustainability. The information technology workforce is reliant on digital devices for several purposes. Thus, semiconductors prove to be quintessential for the remote working workforce. Apart from this, the emergence of artificial intelligence has been steering the semiconductor industry mainly with the shift in consumer mindset and growing use cases of AI in healthcare, education, automotive, and travel. Embedded chipsets and mini-robots in healthcare have encouraged mainly the use of miniature semiconductors.
- Growing Demand for Data Computation: In the realm of edge computing, data analytics, and artificial intelligence, semiconductors are crucial to processing vast amounts of data quickly. This capability fuels various computing applications, from data storage to wireless industries.
- Rising Trend of Vehicle Electrification: In the automotive industry, MEMS-based semiconductors offer better sensing capabilities and advanced actuation that enhance vehicle safety, performance, and comfort. On the contrary, traditional vehicles use gasoline that emits harmful gases. These gases deteriorate the environmental factors and result in ozone depletion. The use of semiconductors in vehicles has been a game-changer to keep these factors under control. Vehicle electrification has been a norm for the past few years. The industry largely uses silicon carbide (SiC) and gallium nitride (GaN) for automotive applications.
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Regional Developments:
Asia Pacific has been a dominant force in the global semiconductors market in production and consumption. It has emerged as a manufacturing hub mainly for countries like Taiwan, China, and South Korea, and Japan. Taiwan is a major host and housing leading semiconductor players and plays a critical role in supply chain dynamics. The companies in the Asia Pacific region have advanced manufacturing capabilities and techniques that enable them to produce high-performance semiconductors for various electronic devices. In terms of consumption, the growing demand for electronic devices is fueled by urbanization, high technological penetration, and steadfast growth in the semiconductor industry. Besides, government support through policies, incentives, and investments has promoted innovation, research, and development in the semiconductor industry.
The U.S. market is spearheading innovation and design in the semiconductor domain. The United States has been a semiconductor innovation and design leader, with most companies headquartered in Silicon Valley. Although Asia Pacific has emerged as a manufacturing hub, the United States still dominates semiconductor design and intellectual property. U.S. companies excel in state-of-the-art technology and use semiconductor chips for various applications such as automotive, smartphones, electronics, aircraft, and IoT devices. Politically, the semiconductor market has witnessed favorable conditions. For instance, the U.S. Congress passed the CHIPS Act (Creating Helpful Incentives to Produce Semiconductors) to incentivize semiconductor manufacturing and research in the country.
Future Outlook:
From a future perspective, the semiconductor industry is fueled by several key trends that are likely to shape its roadmap in the following years. For instance, specialized semiconductors are tailored to meet industrial automation, healthcare devices, and consumer electronics demands. The companies that offer digital solutions to these sectors are exposed to numerous opportunities for the foreseeable future. Besides, developing niche markets can empower these companies to cultivate high expertise and build a niche consumer base.
The emergence of advanced robotics, quantum computing, and augmented reality has sparked growth opportunities for semiconductor use. These technologies exert a huge potential to influence industry dynamics and investments. Manufacturing investments encompass developing new fabrication facilities, facilitating research and development initiatives, and empowering public-private partnerships for better collaboration. Lastly, companies with faster adaptability to changing business landscape and better anticipation of future trends are well-positioned to succeed in the semiconductor business.
Further Findings from the Report:
- The global semiconductors market is projected to attain a positive CAGR by 2032, driven by an increasing demand in the chipset and automotive industry.
- Semiconductors are vital to the telecommunications industry, and deploying 5G and 6G networks relies heavily on advanced semiconductor technology.
- The semiconductors market has been segmented into component, application, and region.
- The automotive industry is a fast-growing segment, attributed to the rise in the popularity of electric vehicles.
- Asia Pacific is the leading semiconductor market and is projected to register a high CAGR in the forthcoming years. Also, several manufacturing companies have established their base in India, China, the Philippines, Singapore, and others. Besides, these regions also have abundant manpower, high spending capacity, and distribution channels.
- Major players in the semiconductors market report and analysis include Intel Corporation, Qualcomm Technologies, Inc., Broadcom, Inc., Taiwan Semiconductors, Samsung Electronics, Texas Instruments, SK Hynix, Micron Technology, NXP Semiconductors, and Maxim Integrated Products, Inc.
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