Global Semiconductors Market - 2023-2030

Market Overview

The Global Semiconductors Market reached US$ 640.6 billion in 2022 and is expected to reach US$ 1,132.8 billion by 2030, growing with a CAGR of 7.5% during the forecast period 2023-2030. The Global Semiconductors Market is expected to continue its growth trajectory, driven by increasing technological advancements, the proliferation of connected devices, the rise of smart cities and the demand for efficient and high-performance electronic systems across industries.

On June 6, 2023, The Indian Government is inviting new applications for setting up semiconductor fabs and display fabs in India under the Modified Semicon India Program. India Semiconductor Mission will receive the applications, the designated nodal agency entrusted with the responsibility of implementing the Modified Semicon India Program to develop the country's semiconductors and display manufacturing ecosystem.

Under the modified program, a financial incentive of 50% of the project cost is available to companies/consortia/ joint ventures to set up semiconductor fabs in India of any node (including mature nodes). Therefore, the region has witnessed a surge in semiconductor demand, accounting for more than 1/3rd of the regional shares.

Market Dynamics

Growing Demand for Integrated Circuits

The automotive industry has increasingly relied on ICs for various applications, including advanced driver-assistance systems (ADAS), infotainment systems, engine management and connectivity solutions. The growth of electric vehicles (EVs) and autonomous driving technologies has further fueled the demand for ICs. The automotive sector's increasing integration of electronics and connectivity features drives IC demand significantly.

Industrial automation and robotics adoption in manufacturing has surged in recent years. ICs are essential for control systems, sensors, actuators and other components used in automation. As industries aim for increased productivity, efficiency and connectivity in their operations, the demand for ICs in industrial automation has grown substantially.

Advancements in Automotive Electronics

As vehicles become more technologically advanced and connected, the demand for semiconductor components in the automotive industry has surged. The rise of electric cars has led to a substantial increase in the market for semiconductors.

EVs require advanced power management systems, battery management systems, motor control units and charging infrastructure-all of which heavily rely on semiconductor technologies. The transition towards electric mobility has significantly boosted the demand for power electronics and advanced semiconductor solutions.

Cyclical Nature of the Semiconductor Industry

The industry is characterized by periodic boom and bust cycles, influenced by various factors such as supply-demand dynamics, macroeconomic conditions and technological advancements. The semiconductor industry experiences fluctuations in demand due to various factors, including changes in consumer preferences, economic conditions and industry-specific trends.

During periods of high demand, the industry experiences growth and increased revenue. However, during downturns, demand can decline, leading to reduced sales, excess inventory and financial challenges for semiconductor companies.

COVID-19 Impact Analysis

The pandemic created a surge in demand for electronics as remote work, online education and entertainment became more prevalent. This increased demand for laptops, tablets, gaming consoles and other electronic devices, leading to a higher demand for semiconductors used in these products.

The pandemic accelerated the adoption of digital services like e-commerce, video conferencing, cloud computing and streaming platforms. These services rely heavily on data centers, networking infrastructure and cloud services, driving the demand for server chips, networking chips and data storage components.

The pandemic highlighted the importance of secure and reliable supply chains for critical technologies like semiconductors. As a result, countries, including the U.S., Japan and the European Union, announced plans to invest in domestic semiconductor manufacturing to reduce reliance on imports and strengthen national semiconductor capabilities.

Segment Analysis

The Global Semiconductors Market is segmented based on product, material, component, end-user and region.

Owing to Bipolar Junction Transistors (BJTs) and Field-Effect Transistors (FETs), Extrinsic Semiconductor dominates the global market

Extrinsic semiconductors, particularly doped silicon, are essential for producing bipolar junction transistors (BJTs). BJTs are fundamental components used in various electronic devices, including amplifiers, switches and integrated circuits. The ability to dope semiconductors to create different regions with varying conductivity enables the operation of BJTs, significantly contributing to the semiconductor market's growth.

Extrinsic semiconductors are also crucial for developing field-effect transistors (FETs). FETs are another basic type of transistor widely used in various electronic devices, such as digital integrated circuits and memory chips.

By precisely doping the semiconductor material, FETs can be created with different channels (e.g., n-type or p-type) and electrical characteristics, enabling the efficient switching and amplification required in modern electronics. Therefore, the extrinsic product segment is expected to grow at the highest CAGR during the forecasted period.

Geographical Analysis

China's Manufacturing Powerhouse and R&D Investments

China has significantly contributed to the growth of the Global Semiconductors Market in recent years. The country has undertaken various initiatives and investments to boost its domestic semiconductor industry, which has had a ripple effect on the global market. China has emerged as a major manufacturing hub for semiconductors.

The country has numerous semiconductor fabrication plants (fabs) that produce a significant portion of the world's chips. For example, Semiconductor Manufacturing International Corporation (SMIC) is one of China's largest semiconductor foundries and plays a crucial role in the global supply chain.

China has been increasing its investments in semiconductor R&D to enhance domestic capabilities. The government has implemented policies and initiatives to support the development of the semiconductor industry, including the "Made in China 2025" plan. This plan focuses on promoting innovation, upgrading technology and increasing self-sufficiency in the semiconductor sector. Therefore, China accounts for more than half of the regional shares and is expected to dominate the regional market by a significant margin.

Competitive Landscape

The major global players include: Intel Corporation, Qualcomm Technologies, Inc, Texas Instruments Incorporated, Toshiba Corporation, Micron Technology, Inc., Infineon Technologies, Samsung Electronics, NVIDIA Corporation, Broadcom, Inc. and SK Hynix.

Why Purchase the Report?

• To visualize the Global Semiconductors Market segmentation based on product, material, component, end-user and region and understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of semiconductors market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The Global Semiconductors Market Report Would Provide Approximately 69 Tables, 73 Figures And 212 pages.

Component 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies