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.

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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.
  

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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.