PUBLISHER: Grand View Research | PRODUCT CODE: 1575153
PUBLISHER: Grand View Research | PRODUCT CODE: 1575153
The global semiconductor fabless market size was estimated at USD 3.56 billion in 2023 and is expected to grow at a CAGR of 9.9% from 2024 to 2030. The market's growth can be attributed to the increasing demand for advanced semiconductor devices, particularly in sectors such as consumer electronics, healthcare, and automotive electronics. Technological advancements in semiconductor fabrication processes also play a pivotal role in the market's growth. In addition, the rise of digital transformation across various industries is accelerating the demand for semiconductor components, thereby driving the market's growth.
The rapid advancement of artificial intelligence (AI) and machine learning (ML) technologies is driving the growth of the market. As AI and ML applications become increasingly prevalent across industries such as automotive, healthcare, and consumer electronics, the demand for specialized semiconductor solutions that can handle complex computations and large data sets is growing. Semiconductor fabless companies focus on designing innovative chips without the need for manufacturing facilities. They are focusing on this trend by developing advanced processors and accelerators tailored for AI and ML workloads. This focus on high-performance and energy-efficient chips supports the growing ecosystem of AI-driven applications and helps market companies gain a competitive edge in the market.
The expansion of 5G networks is another significant growth factor for the semiconductor fabless market. As 5G technology continues to roll out globally, there is an increasing demand for semiconductor components that can support high-speed data transmission, low latency, and enhanced connectivity. Several semiconductor companies are designing advanced radio frequency (RF) components, high-bandwidth transceivers, and network processors that are critical for the successful deployment of 5G infrastructure. Thus, increasing demand for specialized components to support the growth of 5G networks across the globe is further driving the growth of the market.
The proliferation of Internet of Things (IoT) devices is expected to drive the demand for semiconductor components. IoT applications span across smart home devices, industrial automation, and wearable technology, all of which require a diverse range of semiconductor components. Increasing demand for highly integrated and efficient chips for various IoT applications is boosting the market's growth. Some of these include low-power microcontrollers, sensors, and communication modules that enable seamless connectivity and data exchange. As the IoT ecosystem continues to expand, the demand for semiconductor fabless components is expected to increase from 2024 to 2030.
The increasing complexity and cost of semiconductor design is one of the major factors that could hamper the growth of the market. In addition, market companies depend heavily on third-party foundries for manufacturing, which can lead to supply chain vulnerabilities and potential disruptions if foundry capacity is constrained or if there are geopolitical issues affecting global trade. Furthermore, the rapid pace of technological advancement necessitates continuous innovation, posing a risk for companies that struggle to keep up with the latest trends and standards. These factors create a challenging environment for semiconductor fabless companies, potentially slowing their growth and affecting their ability to capitalize on emerging opportunities.
Global Semiconductor Fabless Market Report Segmentation
The report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global semiconductor fabless market report based on type, end use, and region: