Semiconductor Market Size, Share & Segmentation, By Chips, By Wafers, By Sensors, By IC’s, By Automotive Semiconductors, By Region, and Global Forecast for 2024-2032

Semiconductor Market Size

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The Semiconductor Market Size was USD 573.42 billion in 2023 and is expected to reach USD 1641.9 billion by 2032, growing at a CAGR of 12.4% over the forecast period of 2024-2032.

The advanced designing and manufacturing methods used by the worldwide semiconductor industry create significant technological challenges for those who work in the sector. The process nodes are getting close to their physical boundaries, which presents a problem for the market by complicating the downsizing processes and increasing the cost of developing smaller and more powerful processors.

In 2022, the passenger car category had a market share of more than 66% of the global market, and it is anticipated that it would continue to hold the highest market share from 2023 to 2030. The significant increase in demand for passenger cars around the world is responsible for this surge. The segment is also growing as more and more automotive infotainment systems are being installed in passenger cars for hands-free phone connectivity, navigation services, climate control, voice control, parking assistance, two-way communication tools, and internet access. Over the course of the forecast period, the light commercial vehicle category is anticipated to rise at a CAGR of 6.5%, opening up enormous potential for the expansion of the global market. Various incentive programs are being implemented by multiple governments. Over the course of the forecast period, the light commercial vehicle category is anticipated to rise at a CAGR of 6.5%, opening up enormous potential for the expansion of the global market. A number of governments are putting in place various incentive plans and programs to promote semiconductor production, which is anticipated to accelerate the expansion of the automotive semiconductor market. For instance, the CHIPS Act was passed by the American government in July 2022 with the goal of enhancing America's chip supply networks while enhancing national semiconductor manufacturing, development, and research.

Key Findings From Research:

• USA Semiconductors market is expected to achieve a revenue of US$70 billion in the year 2023.

• Integrated Circuits Segment holds the largest market share, with a market volume of US$ 551.28 billion in 2022.

• The USA Semiconductors market is anticipated to grow at a CAGR of 5.65%, resulting in a market volume of US$87.5 billion by the year 2027.

• In terms of global comparison, in China is projected to generate the highest revenue in the Semiconductors market, and estimated value of US$179.52 billion in 2023.

KEY DRIVERS: 

• Increased 5G deployment and rising demand for 5G smartphones

5G, or the fifth generation of wireless technology for digital cellular, offers enormous possibilities for high-tech firms creating intelligent products and linked gadgets, as well as for semiconductor fabs making the chips used in such products. According to the GSM organization, one-third of the world's population should have access to 5G networks by 2025. The agency also forecasted that SG connections, which currently account for more than a fifth of mobile connections, will hit 1 billion by the end of 2022 and 2 billion by 2025. Manufacturers of 5G-capable phones and telecommunications equipment vendors benefit from the quickening pace of 5G wireless network rollouts throughout numerous countries. Additionally, this momentum promises to give in the upcoming years, chipmakers will enter a lucrative new industry.

• Considerable government assistance

RESTRAIN:

• Interruption Of the Supply Chain

The supply chain for the semiconductor industry is highly dependent on international trade, with parts and raw materials frequently coming from distinct nations. Delays and shortages may result from any disturbances in production, logistics, or transportation in one area influencing the entire market. The production of semiconductors necessitates a number of vital ingredients, including rare metals and cutting-edge compounds. Production delays and increased costs may result from a disruption in the supply of these components. For instance, the COVID-19 epidemic recently demonstrated how susceptible the semiconductor sector is owing to supply chain issues disruptions. During the epidemic, factory closures, labour shortages, and limitations had an influence on the supply chain. Thus, the market is seen to be restrained by such interruptions.

• High-cost Hampering growth

OPPORTUNITY:

• Penetration of cutting-edge technologies throughout several industries

The worldwide semiconductor industry is expected to experience technical advancement as of the growing adoption of the Internet of Things (loT). The need for effective and low-power semiconductor solutions is the rising demand for linked devices and smart appliances. Additionally, the need for more potent processors and specialized chips created by artificial intelligence and machine learning applications presents prospects for semiconductor manufacturers worldwide. Also, a change is taking place in the healthcare sector as of an increased reliance on cutting-edge technologies for medical imaging, monitoring, and diagnostics. The market has a number of potentials to expand during the forecast period.

• Increasing need for memory chips that are quick and efficient in industry

CHALLENGES:

• Technical Difficulties

The advanced designing and manufacturing methods used by the worldwide semiconductor industry create significant technological challenges for those who work in the sector. The process nodes are getting close to their physical boundaries, which presents a problem for the market by complicating the downsizing processes and increasing the cost of developing smaller and more powerful processors.

• Lack of skilled workforce

IMPACT OF RUSSIAN UKRAINE WAR

Issues with the semiconductor supply chain and the chip scarcity that have dogged the industry for the past two years have been made worse by the conflict between Russia and Ukraine. Lack of certain raw elements required in semiconductor fabrication, such neon and palladium, poses the biggest threat right now. The top three industries that are growing are wireless communication, automotive semiconductors, and computing (59 chipsets, loT chips) affected by the lack of semiconductors the most, making up 70% of growth. Many manufacturers of end-use products were compelled to because of the lack of chips, postpone their product releases. The end-user has suffered a significant revenue loss as a result of this chip shortage semiconductor users. Two Ukrainian companies, Ingas and Cryoin, supply between 45% and 54% of the world's semiconductor-grade neon, which is essential for the lasers used to manufacture chips. The total amount of neon used to produce chips last year was around 540 metric tons.

According to Larissa Bondarenko, the director of business development at Cryoin, which produces between 10,000 and 15,000 cubic meters of neon per month and is based in Odessa, the company shut down on February 24 when the invasion started to protect its workers. If the violence doesn't cease, according to Bondarenko, the business won't be able to fulfil orders for 13,000 cubic meters of neon in March. She claimed that the business could survive at least three months without the factory operating, but she also cautioned that if equipment were damaged, it would be more difficult to swiftly resume operations and would put more strain on the company's finances.

IMPACT OF ONGOING RECESSION

The semiconductor market is additionally Since the semiconductor business depends heavily on international trade, one of the most significant effects of a downturn may be higher tariffs and other restrictions imposed by governments all over the world. As affected businesses may have less access to crucial resources and markets, which could further cut into their earnings. Additionally, several nations could provide financial incentives to boost their semiconductor companies. Foreign businesses may be at a competitive disadvantage as a result of having to compete with locally supported producers. The semiconductor sector has a long history of making significant investments during recessions to prepare for the anticipated recovery in demand. More domestic semiconductor innovation and manufacturing will result from new firm investments, preventing future chip shortages and ensuring the industry can satisfy the rising demand from markets like the automotive, data storage, and wireless communication industries. For instance, the demand for chips is thought to be 20% higher in the automotive business than in the wireless communication industry. By 2030, it is expected to fuel 25% of growth. The chip industry's demand will be fuelled by these sectors' robust growth drivers over the next ten years.

KEY MARKET SEGMENTATION

 By Semiconductor Chips Market (USD Million & Units)

• Logic Chips

  • Microprocessors

  • Microcontrollers

• Memory Chips

  • Random-Access Memory (RAM)

  • Read-Only Memory (ROM)

• Analog Chips

• Complex Systems-on-a-Chip

• Application-Specific Integrated Chips (ASICs)

By Semiconductor Wafers Market (USD Million & Units)

• Epitaxial Wafers

• Polished Wafers

• SOI Wafers

• Diffused Wafers

• Annealed Wafers

By Semiconductor Sensors Market (USD Million & Units)

• Radar Sensor

• Optical Sensor

• Biosensor

• Touch Sensor

• Image Sensor

• Pressure Sensor

• Temperature Sensor

• Proximity & Displacement Sensor

• Level Sensor

• Mation & Position Sensor

• Humidity Sensor

• Accelerometer & Speed Sensor

• Others

By Semiconductor IC's Market (USD Million & Units)

• Digital Integrated Circuit

  • Logic IC

    • Microprocessors

    • Microcontrollers

  • Memory Chips

    • MOS memory

    • Floating-gate memory

  • Interface ICs

    • level shifters

    • serializer/deserializer

  • Power Management ICs

  • Programmable Devices.

• Analog Integrated Circuit

  • Linear Integrated Circuits

  • Rf Circuits (Radio Frequency Circuits)

• Mixed-signal integrated circuits

  • Data Acquisition ICs

    • A/D Converters

    • D/A Converters

    • Digital Potentiometers

  • Clockitiming ICs

  • Switched Capacitor (SC) Circuits

  • RF CMOS Circuits.

• Three-dimensional integrated circuits (3D ICs)

  • Through-silicon via (TSV) ICs

  • Cu-Cu connection ICs.

By Automotive Semiconductors Market (USD Million & Units)

• Processor

• Discrete Power

• Sensor

• Memory

• Vehicle Type

  • Passenger Vehicle

  • Light Commercial Vehicle (LCV)

  • Heavy Commercial (HCV)

REGIONAL ANALYSIS

In 2022, the Asia Pacific region is anticipated to account for a market share of more than 45% of the global market. The CAGR from 2023 to 2030 is 9.6%. This was ascribed to the expansion of the automobile sector, particularly in developing nations like India, China, and Japan. China was the market leader in Asia Pacific in 2022, and it is anticipated that it will hold that position during the projected period. Additionally, as commercial vehicle production requires the use of automotive semiconductors, the expanding e-commerce sector in the area is predicted to increase demand for commercial cars in the market in the years to come. About the forecast period, Europe is anticipated to grow at the second-highest CAGR of about 7.2%. The establishment of multiple automotive semiconductor manufacturing facilities in Germany has increased the nation's high production capacity and stimulated the growth of new technologies, further investments, and job possibilities in the sector. This is anticipated to be good news for the country's growing automotive semiconductors business. For instance, semiconductor producer Infineon Technologies AG said in February 2023 that it intended to build a USD 5.35 million factory for semiconductor production in Germany.

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REGIONAL COVERAGE:

North America

• US

• Canada

• Mexico

Europe

• Eastern Europe

  • Poland

  • Romania

  • Hungary

  • Turkey

  • Rest of Eastern Europe

• Western Europe

  • Germany

  • France

  • UK

  • Italy

  • Spain

  • Netherlands

  • Switzerland

  • Austria

  • Rest of Western Europe

Asia Pacific

• China

• India

• Japan

• South Korea

• Vietnam

• Singapore

• Australia

• Rest of Asia Pacific

Middle East & Africa

• Middle East

  • UAE

  • Egypt

  • Saudi Arabia

  • Qatar

  • Rest of Middle East

• Africa

  • Nigeria

  • South Africa

  • Rest of Africa

Latin America

• Brazil

• Argentina

• Colombia

• Rest of Latin America

KEY PLAYERS

Key Players by Chips Semiconductor: Robert Bosch GmbH (Germany), NXP Semiconductors (Netherlands), STMicroelectronics (Switzerland), Toshiba Corporation (Japan), ON Semiconductor (US), Renesas Electronics (Japan), Infineon Technologies (Germany), Texas Instruments Incorporated (US), ROHM Semiconductor (Japan), Denso Corporation (Japan)

Key Players by Wafers Semiconductor: SUMCO- Corporation, Siltronic AG, Shanghai Simgui Technology, Wafer Works Corporation, _ Global Wafers, Singapore Pte. Ltd, Tokuyama Corporation., Marvell Technology Group, Xilinx, Inc.

Key Players by Sensors Semiconductor: Infineon Technologies AG, Qualcomm Technologies, Inc., Texas Instruments, SONY CORPORATION, Taiwan Semiconductor Manufacturing Company Limited, Microchip Technology Inc., TE Connectivity, Panasonic Corporation, NXP Semiconductor, STMicroelectronics, Hewlett Packard Enterprise (HPE)

Key Players by IC’s Semiconductor: Texas Instruments, Inc., Analog Devices, Inc., Infineon Technologies AG., STMicroelectronics NV., NXP Semiconductors NV.

Key Players by Automotive Semiconductors: Analog Devices, Inc., Micron Technology, Renesas Electronics Corp., Infineon Technologies AG, NXP Semiconductors N.V., Renesas Electronics Corp., On Semiconductor Corp, Robert Bosch GmbH, ROHM Co., Ltd., STMicroelectronics N.V., Toshiba Corp., and Texas Instruments, Inc.

 RECENT DEVELOPMENT

• Purdue University and the directors of the India Semiconductor Mission inked a contract in May 2023. This month, Purdue has announced a second big foreign partnership. The Indiana Economic Development Corporation, Purdue University, and the state of Indiana announced a partnership with the Belgian institution imec on May 3. Purdue has also taken a number of additional innovative actions during the past year to fulfill critical national semiconductor requirements.

• February 2023 - By establishing a private-sector task force, the US Semiconductor Industry Association (SIA) and India Electronics and Semiconductor Association (IESA) intend to enhance public-private cooperation in the chip ecosystem. The collaboration between the two countries in the global semiconductor ecosystem will be strengthened by this agreement. An MOU was signed by the two parties in April 2022 to encourage collaboration and explore potential economic opportunities between the two countries in the field of semiconductors.

• In September 2021, Toshiba Electronic Devices & Storage Corporation introduced the M4G Group of Arm Cortex-M4 Microcontrollers for advanced-class TXZ+TM Family products that require high-speed data processing.

• The TC78H670FTG, the newest addition to Toshiba Electronic Devices and Storage Corporation's line of micro-stepping integrated circuits, was released in February 2020. A 128 micro-stepping motor can be driven by this new IC between the power levels of 2.5 and 16.   

USE CASES:

The semiconductor industry's biggest cost-driver is manufacturing, and the value that will be delivered by AI/ML use cases roughly 40% of the total will be the highest. They can raise a fab's throughput, lower costs, or increase yields. Predicts that they will reduce manufacturing expenses (including depreciation and cost of goods sold) by up to 17 percent over time. Examine a few instances modification of the settings. Semiconductor businesses often provide one fixed time period for each step when establishing process recipes. However, the duration needed for some individual wafers may exhibit statistical or systematic irregularities, thus a process may continue to operate even after it has achieved the target result (for example, a specific etch depth). That might lengthen the process, waste resources, or even harm the chip.