PUBLISHER: Orion Market Research | PRODUCT CODE: 1123267
PUBLISHER: Orion Market Research | PRODUCT CODE: 1123267
Global Semiconductor Contract Manufacturing Market Size, Share & Trends Analysis Report by Components (Memory Devices, Logic Devices, Analog IC, MPU, Discrete Power Devices, MCU, Sensors, and Others) and by Application (Consumer Electronics, Automotive Electronics, Healthcare Electronics, Aerospace Electronics, and Other) Forecast Period 2021-2027
The global semiconductor contract manufacturing market is anticipated to grow at a significant CAGR of 5.4% during the forecast period. Major factors contributing to the growth of the global semiconductor contract manufacturing market include rising adoption of electronic manufacturing services, increasing sales of electronic devices such as smartphones and laptops, reducing the cost of electronics for a competitive market, rising demand for electronics equipment in the automotive and industrial markets. Though, factors such as contract manufacturing risks such as quality and supply concerns, and government policies, and taxes for trading serve as barriers for the market; however, the growing manufacturing industry and increasing demand for the improved quality product in the aerospace industry create an opportunity for the market.
The demand for electronics products is increasing rapidly throughout the globe. To meet this increasing demand the electronic manufacturing companies are now producing their products through contract manufacturers. This enables electronic companies to produce products through the latest available technologies without investing a huge amount of money in the establishment of production plants with expensive machinery. Through this companies can focus on the core competencies of the market while their contract manufacturers produce products for them. However, the manufacturing of semiconductors requires a hygienic atmosphere, without any pathogens as they may change the composition of the semiconductor manufacturing. This results in a huge amount of product rejections and order cancellations. This is a major restraining factor in the global semiconductor contract manufacturing market.
Impact of COVID-19 Pandemic on Global Semiconductor Contract Manufacturing Market
The global semiconductor contract manufacturing market is hit by the outbreak of COVID-19 since December 2019. The COVID-19 had not only impacted the manufacturing of semiconductors but also impacted the semiconductor companies. The decreased demand for consumer electronics and reduced sales of automotive vehicles has drastically impacted the semiconductor industry. Eventually, its production slowed down. The supply chain disruption of raw materials is an additional factor due to which the manufacturing of semiconductors got reduced.
Segmental Outlook
The global semiconductor contract manufacturing market is segmented based on components, and application. Based on the components, the market is segmented into memory devices, logic devices, analog IC, MPU, discrete power devices, MCU, sensors, and others. Based on the application, the market is segmented into consumer electronics, automotive electronics, healthcare electronics, aerospace electronics, and other.
Global Semiconductor Contract Manufacturing Market Share by Application, 2020 (%)
Global Semiconductor Contract Manufacturing Market Share by Application
Consumer Electronics holds the Major Share in the Global Semiconductor Contract Manufacturing Market
Consumer electronics holds the major segmental share in the global semiconductor contract manufacturing market owing to the increased usage of electronic gadgets including smartphones, wearables, and laptops. Healthcare electronics are emerging very rapidly in the market due to the high prevalence of infectious diseases including COVID-19 and increasing demand for personalized medical equipment. The market will grow in automotive electronics with the increasing market penetration with electric vehicles. The aerospace segment is emerging in the market and generating new opportunities for the market. The rising demand for improved quality and efficient products is the major driving factor for the segmental growth of the market.
In the component segment, analog IC holds the major share in the semiconductor contract manufacturing market. The advanced fabrication techniques had eased the manufacturing of analog ICs. The governments of the US and Japan are using ICs for military purposes. The sensors segment is also growing considerably owing to the increased reliability of IoT and wireless devices. Logic devices are getting popular in the market as they can be re-programmable and modified as per the different requirements. Thus it is a unique and reusable device.
Regional Outlooks
The global semiconductor contract manufacturing market is further segmented based on geography including North America (the US, and Canada), Europe (Italy, Spain, Germany, France, and Others), Asia-Pacific (India, China, Japan, South Korea, and Others, and the Rest of the World (the Middle East and Africa, and Latin America).
Global Semiconductor Contract Manufacturing Market Growth, by Region 2021-2027
Global Semiconductor Contract Manufacturing Market Growth, by Region
North America is Dominating in the Semiconductor Contract Manufacturing Market
North America holds the major share in the semiconductor contract manufacturing market due to the increasing adoption of electronic manufacturing services. Additionally, the rising demand for electronic equipment in the industrial and automobile sector are giving strength to this market growth. The growth of the market in this region is mainly driven by healthcare electronics. Huge investments in research and development are boosting the market growth in this region.
Asia Pacific region is expected to show the fastest growth during the forecast period owing to the increased demand for electronic devices including smartphones, and laptops. The reducing cost of these electronic products in the competitive market is giving strength to the market growth in this region. China, Japan, South Korea, and Taiwan are the major contributing nations in the market as most of the global fabrication plants are situated here. The economical labor cost and abundantly available raw materials are the major factors driving the market in these nations.
Market Players Outlook
The major companies serving the global semiconductor contract manufacturing market include Axenics, Cascade Systems Technology, Benchmark Electronics Inc., Flextronics International, Ltd., ASTI Holdings, Ltd., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers & acquisitions, collaborations, funding, and new product launches, to stay competitive in the market. For instance, Flextronics had acquired AGM automotive in 2017 which had enhanced designing capabilities.
The Report Covers
Market value data analysis of 2020 and forecast to 2027.
Annualized market revenues ($ million) for each market segment.
Country-wise analysis of major geographical regions.
Key companies operating in the global semiconductor contract manufacturing market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
Analysis of market-entry and market expansion strategies.
Competitive strategies by identifying 'who-stands-where' in the market.