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Semiconductor Industry Landscape Market Trends, Growth Analysis to 2030
minutes de lecture
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According to the Market Statsville Group (MSG), the global semiconductor industry landscape market size is expected to grow from USD 471.3 billion in 2021 to USD 911.1 billion by 2030, at a CAGR of 7.6% during the forecast period. The semiconductor industry is witnessing a rapid growth rate, with semiconductors emerging as the basic building blocks of all modern technology. The advancements and innovations in this field result in a direct impact on all downstream technologies.
The semiconductor industry is predicted to continue its robust growth to accommodate the increasing demand for semiconductor materials in emerging technologies, such as AI, Internet of Things, autonomous driving, and 5G, coupled with competition among key players and consistent spending on R&D.
Semiconductors are used extensively across electronic devices, such as smartphones, LED TVs, flat-screen monitors, and civil aerospace and military systems. The semiconductor industry is also likely to benefit from progress in biometrics capabilities. The growing demand for smartphones and technologically advanced products, such as wearable gadgets, etc., is also impacting the market's growth.
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The automation and electrification of automobiles have been driving increased demand for semiconductor wafers. Semiconductor ICs with varied functionalities are used in automotive products such as infotainment systems, navigation control, and collision detection systems. The inclusion of such features has an impact on automobile sales.
Global Semiconductor Industry Landscape Market Dynamics
Drivers: Rapid Advancement in AI, along with Innovation and Extended R&D
The demand for data centers, especially edge services, surged significantly worldwide amidst the COVID-19 pandemic. Many data center service providers started expanding their facilities and server architectures to utilize this opportunity. In such regard, memory components are further witnessing increasing demand owing to various factors such as the growth in cloud computing, increasing need for AI and HPC, and growing adoption of advanced GPUs and CPUs, among others.
Companies like US-based NVIDIA are leveraging its GPU architecture to create platforms for virtual reality, HPC, and AI. In 2020, the company also launched its first GPU-Based AI chip to boost performance by 20x.
Restraints: Complex Fabrication Process, Owning to Decreasing Chip Size
Moore's Law states density is all about the number of transistors fitted in a given 2-Dimensional area. It is vital to care about the chip area as the cost of the chip is directly proportional to the chip area.
However, some scientists feel that transistor shrinkage is no longer viable. To get an approximate notion of the dimensions, compare them to the scale of a modern transistor, which has a typical gate length of about 20 nanometers. On the other hand, a water molecule has a diameter of only 2.75 Angstroms, or 0.275 nanometers. Many issues limit the transistor's fabrication expectations at such a small scale. Controlling materials at the atomic level is one of the most difficult issues. Individual atom placement becomes tough while creating a transistor.
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Scope of the Global Semiconductor Industry Landscape Market
The study categorizes the semiconductor industry landscape market based on component type, application, and region.
By Component Type Outlook (Sales/Revenue, USD Million, 2017-2030)
By Application Outlook (Sales/Revenue, USD Million, 2017-2030)
- Data Processing
- Consumer Electronics
By Region Outlook (Sales/Revenue, USD Million, 2017-2030)
- North America
- The Netherlands
- Czech Republic
- Rest of Europe
- Asia Pacific
- South Korea
- Australia & New Zealand
- Rest of Asia Pacific
- South America
- Rest of South America
- The Middle East & Africa
- Saudi Arabia
- South Africa
- Northern Africa
- Rest of MEA
The memory segment is projected to account for the largest market share, by component type
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Based on component type, the global semiconductor industry landscape market is divided into memory, microcomponent, OSD, analog, and logic. In 2021, the memory segment accounted for the largest market share of 28.5% in the global semiconductor industry landscape market. Semiconductor memory refers to various electronic data storage devices that find applications as computer memory in computers (PCs, laptops), consumer devices (cameras, phones), commercial IT applications (telecom, datacenters), traditional industrial applications, and the emerging spectrum of IoT applications.
The increasing adoption of memory ICs in automobile electronics and the growing application of memory storage chips in electronic devices are driving the demand for DRAM products. Further, The rising adoption of 5G technology and wireless communication advancements are expected to impact the market studied. Several vendors are investing in the advancement of the memory components to gain leverage in 5G technology.
Asia Pacific accounts for the highest CAGR during the forecast period
Based on the regions, the global semiconductor industry landscape market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. Worldwide, Asia Pacific is estimated to hold the highest CAGR in the global semiconductor industry landscape market during the projected period. The region includes the countries such as Japan, China, South Korea, India, Australia, Southeast Asia, and the Rest of Asia-Pacific. In Japan, semiconductors are known as “industry rice” due to their essential role in manufacturing automobiles smartphones to home appliances. The country was once a global leader in production but now relies heavily on imports for both chips and legacy semiconductors.
After the Asia Pacific, North America is estimated to be the fastest-growing region during the study period. The United States is a significant country for manufacturing, design, and research in the semiconductor industry. The region's prominence drives demand for exporting electronics equipment and growing end-user industries that are major consumers of semiconductors, such as consumer electronics, automotive industry, etc. The region has been witnessing increased activity in establishing semiconductor wafer foundries. In November 2020, various Taiwan Semiconductor Manufacturing Co. (TSMC) suppliers announced their plan to follow TSMC to the United States after the world’s largest contract chipmaker announced its plan to build an advanced 5nm wafer plant in Arizona.
Key Market Players in the Global Semiconductor Industry Landscape Market
The global semiconductor industry landscape market is highly competitive with key industry players adopting various strategies such as product development, partnerships, acquisitions, agreements, and expansion to strengthen their market positions. Most companies in the market are focused on expanding operations across regions, augmenting their capabilities, and building strong partner relations.
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Major players in the global semiconductor industry landscape market are:
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