Semiconductor Market Overview:
According to the Global System for Mobile Communications (GSMA), the number of Internet of Things (IoT) connections – cellular and non-cellular both will enhance three-times globally between 2017 and 2025, and it will surpass the 25 billion mark[1], which is going to usher the demand for semiconductors. This resonates with the market size of semiconductors which was valued between $420 billion to $430 billion in 2018 by IndustryARC’s market analyst. Furthermore, the analyst has estimated the demand for semiconductors to grow with a superlative CAGR of 10% to 12% during the forecast period of 2019 to 2025.
Owing to the growing number of mobile devices in countries such as China, India, Taiwan, and South Korea, stroking sublime growth in the consumer electronics sector, the APAC region held the maximum global semiconductor market share in 2018 which translated to 70% as of 2018, according to the findings by the market analyst.
Semiconductor Market Outlook:
Semiconductors such as silicon and germanium are materials that have an electrical conductivity that falls between conductors and insulators, and they are widely used in transistors. They also find applications in various sectors such as consumer electronics in telecommunication and other devices, energy, automotive, computing, and others. Their key application has been identified to be in the automotive sector which will observe a progressive CAGR of around 10% through to 2025 as projected by the market analyst.
“The future will observe a definite growth in the number of vehicles owing to the population growth and affordability, and it will be coupled with the nascent prevalence of electrical vehicles and autonomous trucks, which is going to create a humongous semiconductor marketplace,” remarks the market expert in the market research report.
Semiconductor Market Growth Drivers:
- The Penetration of Implantable Medical Devices in the Healthcare Sector –
In an indigenously generated report by the American Association of Retired Persons (AARP), the market revenue of implantable medical devices was projected to be $74 billion by 2018[2]. This resonates with the fact that medical devices have become indispensable for the healthcare delivery in all the countries as discussed in the fourth WHO Forum on Medical Devices that took place in Vishakhapatnam, Andhra Pradesh, India in December 2018. The main takeaway from the conference was that the number of medical devices across the globe will increase in the future. Now, medical devices are incorporated with semiconductor chips which is one of the major driving factors responsible for the semiconductor market growth.
- The Artificial Intelligence Wave Stirring Semiconductors Sales –
With the advent of artificial intelligence and machine learning, AI chips have become a vital necessity. AI is creating a need for powerful semiconductor chips which can compute answers for large data sets. Apparently, the future will observe an upsurge in the number of machine learning applications which bring a subsequent heave in the semiconductor market size.
- Data Storage Market driving the demand for Semiconductors –
According to the findings by the market analyst of IndustryARC, the data storage market was valued to be $35 billion to $40 billion in 2018, and the demand will shoot up with an astonishing CAGR of 18% to 22% during the forecast period of 2019 to 2025. Consequently, there will be an increase in the demand for semiconductors which will create a semiconductor market revenue avenue for the vendors.
Semiconductor Market Challenges:
Even though there is a discernible reduction in the manufacturing cost and a rapid increase in the demand for semiconductors, the technical concerns about the continuously changing functionality of semiconductor chips and peculiar demands from the end-users belonging to diverse sectors are becoming restraint factors in the semiconductor market. However, up-gradation in manufacturing techniques and investment in R&D to reinvent production strategies will be helpful to the vendors.
Semiconductor Market Key Players Perspective:
Global Semiconductor Alliance (GSA) had named NVIDIA Corporation as the most respected semiconductor company which had achieved more than $5 billion sales.
Other key players crusading for semiconductor market share are Intel, Samsung, Qualcomm, Broadcom, SK Hynix, Micron, TI, Toshiba, NXP, MediaTek, Western Digital, STMicroelectronics, Infineon, Sony, Renesas, Apple, and Analog Devices.
Semiconductor Market Trends:
- In June 2018, China approved the $44 billion merger between Qualcomm and NXP Semiconductor.
- In October 2018, Apple acquired a portion of Dialog Semiconductor for $600 million after which the latter is expecting growth in revenues.
- Latest Development – In December 2018, Toshiba America Electronic Components, Inc. (TAEC) announced a new IC which is compliant with the Bluetooth Low Energy (LE) core specification. This development is going to spawn other companies to reinvent their product strategies in accordance with the current demand.
Semiconductor Market Research Scope:
The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the semiconductor market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the types of semiconductor market, and their specific applications in the networking &telecommunication, energy, automotive, computing, consumer electronics, sports & fitness, and other sectors.
Semiconductor Market Report: Industry Coverage
The report analyses the product demands by the type of product - intrinsic semiconductor and extrinsic semiconductor. The market is further segmented on the basis of components that include seals, filters, mass flow controllers, valves, and others and by instrument that include collection, monitoring, data measurement, and others.
Semiconductor market analysis provides a peek into the manufacturing methods that include water production, wafer fabrication, doping, masking, etching, and others.
The semiconductor market report also analyzes the major geographic regions as well as the major countries in these regions. The regions and countries covered in the study include:
- North America: The U.S., Canada, Mexico
- South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica
- Europe: The U.K., Germany, Italy, France, the Netherlands, Belgium, Spain, Denmark
- APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaynullsia, Hong Kong
- Middle East and Africa: Israel, South Africa, Saudi Arabia
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