Global Semiconductor Market By Component (Memory Devices, Logic Devices, Analog IC, MPU, MCU, and Other Components), By Source (Silicon, Germanium, Gallium Arsenide, and Other Sources), By Node Size (32/28nm, 16/14nm, 10/7nm, 7/5nm, 5nm, Other Node Sizes), By Application (Telecommunication, Data Processing, Industrial, Consumer Electronics, Automotive, and Other Applications), By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032
- Published date: March 2024
- Report ID: 105940
- Number of Pages: 242
- Format:
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Report Overview
The Global Semiconductor Market is projected to reach a valuation of USD 1,307.7 Bn by 2032 at a CAGR of 8.8%, from USD 625.2 Bn in 2023.
Semiconductors are electronic components made of materials that have electrical conductivity between conductors (such as metals) and insulators (such as ceramics). They are the foundation of modern electronics and are used in various devices ranging from smartphones and computers to industrial machinery and automobiles. Semiconductors play a critical role in controlling and amplifying electrical signals, enabling the functioning of integrated circuits (ICs) and electronic systems.
The semiconductor market is driven by several factors, including technological advancements and innovation, increasing demand for electronics and connectivity, the emergence of new technologies, and industry-specific applications. However, the market also faces challenges such as the cyclical nature of the industry, manufacturing complexities and costs, supply chain dependencies, and intellectual property protection.
Key Takeaways
- The global Semiconductor Market is expected to reach a valuation of USD 1,307.7 billion by 2032, with a projected Compound Annual Growth Rate (CAGR) of 8.8% from 2023 to 2032.
- The MPU and MCU segment holds a notable share of 34.0%, attributed to their extensive use in devices such as notebooks, desktops, laptops, and personal computers.
- Silicon holds the largest share (46.5%) among the primary semiconductor materials, owing to its stability and wide-ranging usefulness in creating gates, circuits, and switches.
- The 16/14nm node size dominates the market, comprising a substantial share (28.0%). While the industry is moving towards smaller node sizes, challenges persist as physical dimensions can be misleading.
- The telecommunications sector holds the largest share (37.0%) in the market. The increasing need for remote work is fueling the demand for semiconductors in the telecommunication sector. Data processing, consumer electronics, and the automotive industry are also significant application segments.
- Asia-Pacific accounts for 51.5 % of the worldwide semiconductor market and is driving its expansion with its dynamic semiconductor market.
- Global semiconductor sales are projected to decline by ~4.1% in 2024, totaling approximately ~$634 billion. This downturn is attributed to economic headwinds.
- In 2023, the share of semiconductor sales for memory products is expected to increase to ~27.9%, up from 26.3% in 2022.
- Semiconductor capital spending is forecasted to decrease by ~19.7% in 2023, reaching ~$92.1 billion.
- Semiconductor inventory levels are expected to peak in the second half of 2023, with a subsequent improvement in 2024.
- It is predicted that 2024 will witness global semiconductor sales of ~$588 billion, marking a ~13% improvement over the previous year and surpassing the record revenues of 2022.
- As of February 29, 2024, Nvidia leads the semiconductor industry with a market capitalization of approximately ~$1,941 billion. Taiwan Semiconductor Manufacturing Company (TSMC) and Broadcom follow, with market values of ~$660.64 billion and ~$597.54 billion, respectively.
- Other significant players include ASML and Samsung, with market capitalizations of approximately ~$376.41 billion and ~$367.27 billion, respectively. AMD, Intel, Qualcomm, Applied Materials, and Texas Instruments are among the other key competitors.
- Apple is expected to reach a market capitalization of approximately ~$3 trillion by the end of 2023.
- Hybrid electric vehicles can contain up to 3,500 semiconductor chips, highlighting the industry’s impact on automotive technology.
- Key Players in the Semiconductor Industry: Notable companies involved in the semiconductor industry include NXP Semiconductors, MediaTek Inc., TOSHIBA Corporation, Infineon Technologies, Advanced Micro Devices, Inc. (AMD), Maxim Integrated Products Inc (Maxim), Samsung Electronics Co Ltd, SK Hynix Inc and Intel Corporation – among many others.
By Component Analysis
Memory Devices Are In Demand Due To Ongoing Technological Advancements.
The Semiconductor Market can be categorized into components, source, node size, application, and region. The component segment encompasses memory devices, Analog ICs, logic devices, MPUs, MCUs, and other associated components. The MPU and MCU sector currently stand as the front-runner in this market, commanding a notable share of 34.0% in 2022.
The ascendancy of this segment is primarily attributed to the extensive utilization of MCUs and MPUs in the fabrication of diverse devices such as notebooks, desktops, laptops and personal computers. This substantial employment has significantly underpinned the growth of the MPU & MCU category. The prevailing trends about Internet of Things (IoT) devices, coupled with the escalating demand for these devices, are further fueling the requisition for potent processors and controllers.
This augmentation in demand is consequently bolstering the prominence of the MPUs and MCUs segments within the Market. Supporting this notion, the National Cable and Telecommunications Association has reported that the global count of connected devices reached approximately 50 billion in 2020, witnessing a notable increase from nearly 34 billion in 2018. The projection for the forthcoming years anticipates a swift proliferation of IoT devices.
Furthermore, the segment pertaining to memory devices is anticipated to experience the most rapid expansion throughout the projected duration. This phenomenon can be attributed to the escalating infiltration of digitalization and the rising abundance of enterprises operating in the digital realm. The swift demand for cloud computing services and the heightened adoption of virtual reality (VR) technology are poised to serve as impetuses propelling the advancement of this particular segment in the forthcoming timeframe.
By Source
Silicon Is To Be Considered The Most Used Element As The Source.
Semiconductors play a vital role in electronic gadgets and hinge on three primary elements: silicon, germanium, and gallium arsenide. Among these, silicon shines as the most pivotal ingredient, predicted to commandeer a significant 46.5% portion of the market. The prevalent utilization of silicon in creating semiconductors derives from its exceptional stability. It boasts wide-ranging usefulness in shaping gates, circuits, and switches.
By integrating silicon (Si), germanium (Ge), and gallium arsenide (GaAs), manufacturers of electronic devices can supplant traditional thermoelectric parts that contribute bulkiness and hinder portability. Since the advent of these semiconductor elements, a conspicuous trend towards making things smaller has emerged, allowing electronic devices to become more condensed and effortlessly transportable. Silicon reigns supreme among all the accessible semiconductor elements in the market.
By Node Size
16/14nm is the most dominant node size
As of 2022, the dominant segment in the market is the 16/14nm category, holding a significant share of 28.0%. Semiconductor size, often referred to as node size, is measured in nanometers, a unit equal to one billionth of a meter (or 0.00000001 m). Currently, chips with sizes of 14 and 10 nanometers are being produced on a large scale. However, the industry is steadily moving towards even smaller node sizes. Despite this trend, the challenge lies in the fact that the physical dimensions can be misleading.
Although 7-nanometer chips are already available in the market, their classification is similar to how Intel labels its 10-nanometer node, as defined by companies like Samsung and Taiwan Semiconductor Manufacturing Company (TSMC). TSMC is actively working on a 5-nanometer product with a high transistor density of 171.3 million transistors per square millimeter. Additionally, both TSMC and Samsung have announced their plans to manufacture chips with 3-nanometer nodes. Such developments are likely to fuel segment growth during the projection period.
Application Analysis
The Telecommunications Application Dominates the Market.
Categorized by application, the semiconductor market is divided into telecommunication, data processing, consumer electronics, industrial, automotive, and other segments. The telecommunication sector is the front-runner, holding a 37.0% share in 2022. The growing need for remote work in developing and developed nations notably boosts the demand for these semiconductors within telecommunications.
In data processing, this market category currently encompasses a substantial portion of the semiconductor industry. This is attributed to the considerable demand and sales of smartphones and interconnected devices, propelling the memory and storage components requirement.
The sphere of consumer electronics, encompassing gaming consoles, wearable tech, and various electronic devices, holds significant importance. This is due to the global embrace of electronic gaming across numerous countries. Additionally, the industrial application segment is projected to grow gradually as there is room for improvement in industrial machinery manufacturing.
Note: Actual Numbers Might Vary In The Final Report
Drivers
Rising Consumption of Electronics Goods and Steadfast Development of Mechatronics in Industrial Sectors
The surge in global population and the swift pace of urbanization are pivotal factors propelling the upward trajectory of household electronics adoption. Consequently, this phenomenon has created a substantial market encompassing fundamental and innovative consumer electronics. Integrated circuit chips, essential components for the effective and appropriate functioning of numerous electronic products such as mobile phones, washing machines, televisions, and refrigerators, are integral to this landscape.
Prominent enterprises specializing in consumer electronics channel significant investments into research and development endeavors. These investments aim to conceptualize novel products capable of satiating the escalating consumer appetite for cutting-edge technology. Such innovations cater to growing consumer demands and serve as catalysts for expanding the consumer electronics market.
Several integrated circuit manufacturers are tailoring their offerings to align with personalized consumer requisites to bolster their global market presence and enhance customer appeal. The rapid expansion of the semiconductor industry is intrinsically linked to the mounting consumption of consumer electronics on a global scale. Moreover, machine learning and artificial intelligence have ushered in fresh opportunities for amplifying the semiconductor market sector.
Restraints
The Disruption in Supply Chain, Tariff, and Global Trade Shift Affects the Market Growth.
The semiconductor sector heavily relies on a global supply chain and trade tariffs, often sourcing raw materials and components from diverse countries. Any disruption in this intricate process – be it in production, logistics, or transportation – can trigger shortages and delays, thereby adversely impacting the market. The production of semiconductors necessitates various components, encompassing advanced materials and scarce metals. Should the supply of any of these components be disrupted, it can result in heightened costs and production setbacks.
The growth trajectory of the semiconductor industry is profoundly influenced by multiple factors, among which the utilization of consumer electronics holds significant sway. Furthermore, the swift adoption of Internet of Things (IoT) technology is poised to catalyze market expansion. Nevertheless, the initial adoption of this technology encounters impediments due to the intricacies of manufacturing, which stands as a notable barrier to the broader expansion of the market.
Opportunity
Rising Penetration of Advanced Technologies in Multiple Sectors.
The semiconductor sector is experiencing high demand, which is affected by new technology. In recent years, the widespread adoption of the internet pushed volume for Ethernet equipment, network processors, and ASICs, while the sharp rise in the popularity of PCs raised demand for central processing units and memory chips.
The worldwide semiconductor industry is expected to benefit from the Internet of Things (IoT) technical advancements. The rising demand for linked devices and intelligent appliances drives the need for effective and low-power semiconductor solutions. Artificial intelligence and machine learning applications necessitate more potent CPUs and specialized chips, creating opportunities for semiconductor manufacturers worldwide. Additionally, a change is taking place in the healthcare sector due to an increased reliance on cutting-edge technologies for medical imaging, monitoring, and diagnostics. Thanks to all these factors, the market has several potential to expand during the forecast period.
Trends
An Increase In The Implementation of AI, IoT, and Rising Adoption of Wireless Technology
Advancements in the Internet of Things (IoT), AI-driven wireless devices, and increased funding from prominent industry players are propelling the development of innovative wireless products during the projection period. For instance, Micron Technology Inc. stands out as a notable example, offering sophisticated solutions such as multi-chip packages and high-capacity memory with integrated AI training capabilities.
These technological offerings find effective application in a diverse range of embedded, cloud-connected, mobile, and edge devices. Recent strides in innovation primarily revolve around the integration of highly compact System-on-a-Chip (SoC) components. These components seamlessly incorporate processors, memory, RF transceivers, sensors, and power management functions.
The outcome is the creation of devices that operate with improved energy efficiency and elevated security features. The continuous progress in wireless technology, coupled with increased investments, underscores the growing demand for Intellectual Property (IP) solutions.
These encompass essential elements like interfaces, processor intellectual properties (IPs), and silicon-based Application-Specific Integrated Circuit (ASIC) IPs. These foundational components significantly contribute to the development of wireless technology-centric and portable devices. This technology finds application in crafting products like smartphones, earphones, and smartwatches.
Key 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
Regional Analysis
Asia-Pacific Region Accounted Significant Share of the Global Semiconductor Market
Asia Pacific stands as the predominant player, holding the largest market share at 51.5%, and is poised to demonstrate the most substantial growth on a global scale. The region’s burgeoning semiconductor market is a pivotal factor driving the overall market expansion.
The North American market is anticipated to exhibit dynamic growth, attributed mainly to augmented investments in Research and Development (R&D) endeavors. Notably, data from the Semiconductor Industry Association (SIA) indicates that R&D investments by the US industry have grown at a Compound Annual Growth Rate (CAGR) of roughly 6.6% between 1999 and 2019. Sustained high levels of corporate expenditure on operational R&D activities in the US contribute to this trend. In Europe, noteworthy advancements are expected to be facilitated by the telecom and automotive sectors, substantiating their potential for substantial development.
Note: Actual Numbers Might Vary In The Final Report
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
Expansion of Product Portfolio Has Led to the Dominance Of Market Players
Prominent contenders within this industry employ diverse strategies, encompassing collaborative ventures, strategic investments for portfolio expansion, mergers and acquisitions, and other pertinent measures. These enterprises are also allocating substantial resources to enrich their product offerings. Moreover, they are resolute in their commitment to maintaining competitive pricing structures.
The Semiconductor Market is characterized by its fragmentation due to the presence of numerous significant players worldwide. Emerging key players face fierce rivalry, especially from established market leaders known for their reputable brands and extensive distribution networks. To establish a foothold in the semiconductor industry, the major players in this market have embraced diverse tactics like mergers and acquisitions, broadening their product offerings, expanding their presence in different regions, and forming collaborations and agreements.
These are some of the major players in the industry
- 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
Recent Development
- 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.
Report Scope
Report Features Description Market Value (2023) US$ 625.2 Bn Forecast Revenue (2032) US$ 1,307 Bn CAGR (2023-2032) 8.8% Base Year for Estimation 2022 Historic Period 2016-2022 Forecast Period 2023-2032 Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments Segments Covered By Component (Memory Devices, Logic Devices, Analog IC, MPU, MCU, and Other Components), By Source (Silicon, Germanium, Gallium Arsenide, and Other Sources), By Node Size (32/28nm, 16/14nm, 10/7nm, 7/5nm, 5nm, Other Node Sizes), By Application (Telecommunication, Data Processing, Industrial, Consumer Electronics, Automotive, and Other Applications) Regional Analysis North America – The US & Canada; Europe – Germany, France, The UK, Spain, Italy, Russia, Netherlands, and Rest of Europe; APAC- China, Japan, South Korea, India, Australia, New Zealand, Singapore, Thailand, Vietnam, and Rest of APAC; Latin America- Brazil, Mexico & Rest of Latin America; Middle East & Africa- South Africa, Saudi Arabia, UAE & Rest of MEA Competitive Landscape NXP Semiconductors, MediaTek Inc., TOSHIBA Corporation, Infineon Technologies, Advanced Micro Devices, Inc., Maxim Integrated Products Inc., Samsung Electronics Co Ltd, Intel Corporation, SK Hynix Inc., Analog Devices Inc., QUALCOMM Incorporated, Taiwan Semiconductors, Broadcom Inc., Micron Technology Inc., Texas Instruments Inc., NVIDIA Corporation, and Other Key Players Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements. Purchase Options We have three licenses to opt for Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF) Frequently Asked Questions (FAQ)
What is the size of the semiconductor market?The Global Semiconductor Market is projected to reach a valuation of USD 1,307.7 Bn by 2032 at a CAGR of 8.8%, from USD 574.6 Bn in 2022. The market is driven by the increasing demand for semiconductors in a wide range of applications, such as smartphones, computers, data centers, and automobiles.
Who is the biggest producer of semiconductors?The largest semiconductor company in the world is Taiwan Semiconductor Manufacturing Co. which made $75.88 billion in revenue in 2022.
What are the driving forces of the semiconductor market?The main driving forces of the semiconductor market are:
- The increasing demand for electronic devices: The global demand for electronic devices is growing rapidly, driven by the increasing adoption of smartphones, tablets, laptops, and other devices.
- The rise of the Internet of Things (IoT): The IoT is connecting billions of devices together, which is creating a growing demand for semiconductors.
- The development of new technologies: The development of new technologies, such as artificial intelligence (AI) and machine learning, is also creating a growing demand for semiconductors.
Which country is rich in semiconductor?Japan has one of the most powerful semiconductor ecosystems in the world. It has 102 chip-making facilities, spread across the nation
Are semiconductors the future?Yes, semiconductors are the future. They are essential components of many of the technologies that are shaping our world, such as smartphones, computers, data centers, and automobiles. The demand for semiconductors is only going to grow in the coming years, as new technologies are developed and adopted.
What are the opportunities in the semiconductor market?The main opportunities in the semiconductor market are:
- The growth of the IoT market: The IoT market is expected to grow rapidly, which will create new opportunities for semiconductor companies.
- The development of new technologies: The development of new technologies, such as AI and machine learning, will create new opportunities for semiconductor companies.
- The growth of the automotive semiconductor market: The automotive semiconductor market is growing rapidly, which will create new opportunities for semiconductor companies.
Who are the major players in the semiconductor market?The major players in the semiconductor market are:
- 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
- NXP Semiconductors,
- MediaTek Inc.
- Toshiba Corporation Company Profile
- 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
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