APAC Semiconductor Device Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 9.50 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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APAC Semiconductor Device Market Analysis
Asia-Pacific Semiconductor Device Market For Industrial Applications is valued at USD 52.53 billion in the current year and is expected to grow at a CAGR of 9.5% during the forecast period to become USD 79.72 billion by the next five years.
Asia-Pacific Semiconductor Device Market For Industrial Applications is estimated to continue its robust growth during the forecast period to accommodate the increasing demand for semiconductor materials in emerging technologies, such as artificial intelligence (AI), autonomous driving, the Internet of Things, and 5G, coupled with competition among key players and consistent spending on R&D.
Industry 4.0 is transforming the way companies manufacture their products. The term Industry 4.0 refers to the smart and connected production systems designed to sense, predict, or interact with the physical world, making real-time decisions that support production. In manufacturing, it has the potential to increase productivity, energy efficiency, and sustainability.
One of the most important components of Industry 4.0 is the Industrial Internet of Things (IIoT), which refers to the extension and use of the IoT in industrial sectors and applications. The underlying core capabilities provided by semiconductors for IIoT include sensing, connectivity, and computing. For instance, in the context of IIoT, sensors are widely used in different industries to monitor equipment, assets, systems, and overall performance.
Another important enabler of Industry 4.0 and a common area of application of semiconductors is industrial robots, which are mechanical machines programmed to perform production-related tasks in industrial environments automatically. For instance, in January 2021, the Chinese government announced plans to expand the domestic market for electronic components to CNY 2.1 trillion (USD 327 billion) by 2023. The plan covers components, materials, and manufacturing equipment used in areas such as smartphones, drones, 5G wireless, connected factories, electric vehicles, robotics, high-speed rail, and aerospace. Specifically, the Chinese government is looking to increase the output of semiconductors, sensors, magnets, fiber-optic equipment, and software, among others. Such initiatives create a positive growthoutlook for the studied market.
For their functioning, industrial robots require sophisticated sensors that obtain important information. Sensors can use semiconductor processing units to gather external information like images, infrared light, and sound, along with internal data on temperature, moisture, movement, and position. Today, many industrial robots are equipped with 3D vision systems, which are usually comprised of multiple cameras or one or more laser displacement sensors. For instance, in June 2022, Analog Devices announced the launch of a high-resolution, industrial quality, indirect Time-of-Flight (iToF) module for 3D depth sensing and vision systems. Enabling cameras and sensors to perceive 3D space in one-megapixel resolution, the new ADTF3175 module is suitable for applications in industrial automation.
Despite logistical challenges related to the COVID-19, semiconductor facilities located in Asia-Pacific continued to function normally with high-capacity rates. Moreover, in various countries, such as South Korea, most semiconductor operations continued uninterrupted, and chip exports grew by 9.4% in February 2020.
APAC Semiconductor Device Market Trends
Industry 4.0 Investments Driving The Demand For Automation
The countries in Asia-Pacific are occupying leading positions in the transition to Industry 4.0. Significant initiatives have resulted in increased attention being given to the digital economy and Industry 4.0 in the Asia Pacific region to boost manufacturing activities, such as Singapore's Smart Nation and Committee for the Future Economy initiatives, Indonesia's '2020 Go Digital Vision', the 'Thailand 4.0' initiative, the Vietnamese government's Industry 4.0 initiatives, amongst others, which is bringing increased scope for semiconductor device market for industrial applications.
The technologies of Industry 4.0 that will be deployed are machine-to-machine communication (M2M), supervisory control and data acquisition (SCADA), overall equipment effectiveness, customized automation system design, high-mix-low-volume manufacturing design, process traceability, and tracking system, remote monitoring, and auto reporting, production floor safety and security, and machine vision inspection system.
Korea's commercial and public sectors have agreed to boost the number of local smart factories to have more than 30,000 working with the newest digital and analytical technology by 2022. The Ministry of Trade, Industry, and Energy (MOTIE) of Korea has reaffirmed the government's ambitions to assist small and medium-sized businesses adopt and expand smart manufacturing technology, thus driving the Asia-Pacific Semiconductor Device Market For Industrial Applications.
Furthermore, the Japanese government announced Connected Industries in response to the German government's "Industry 4.0" program, and the momentum for a new manufacturing revolution is rising. The push toward smart factories is accelerating with technological advancements such as digitalization, production technology sophistication, and robotics to achieve higher efficiency in the manufacturing industries.
China to Hold Significant Share
According to the Mobile Economy 2021 report by GSMA, more than 990 million people in the China region presently utilize mobile internet services, with an additional 200 million predicted by 2025. Grocery purchasing is a new, emerging trend in online shopping. In China, automation is occurring rapidly, despite the wage rate being lower (compared to European nations and North America since there was an increase in wage rate over the past decade), and this is expected to continue for the next decade and to accelerate the automation, thus driving the Asia-Pacific Semiconductor Device Market For Industrial Applications.
Furthermore, the government's ambitious 'Made in China 2025' initiative, partially inspired by Germany, for Industry 4.0 aims to boost the country's competitiveness in the manufacturing sector. The ten-year plan, introduced in May 2015, is the government's bid to shift the industries to the medium-high end of the global value chain and foster several advanced manufacturing clusters. The increase in industrialization will grow the market for automated solutions such as AGVs and AMRs, which are embedded with semiconductors. Thus, cost reduction, space optimization, complex manufacturing operations, and speed of delivery will be major driving factors for the demand for the Semiconductor Device Market For Industrial Applications.
Startups, such as Syrius Robotics, based out of Shenzhen, are building autonomous mobile robots to integrate them into two model warehouses of JD Logistics for further testing and optimization for last-mile deliveries. AMH systems are expected to experience demand from the manufacturing industries, with increased throughput, warehouses, and distribution centers. Any segment directly or indirectly affected by the spike in demand in the e-commerce and retail markets is expected to escalate the need for semiconductor devices in the country.
According to survey data from the National Bureau of Statistics, China has become the world's largest industrial robot market and has had tremendous growth for the past eight years, with the trend continuing. China's industrial robot industry currently accounts for 44% of the global market, and it is expected to continue to grow.
APAC Semiconductor Device Industry Overview
Asia-Pacific Semiconductor Device Market For Industrial applications fluctuates with growing consolidation, technological advancement, and geopolitical scenarios. With the presence of large market incumbents, such as Intel Corporation, Nvidia Corporation, Kyocera Corporation, Qualcomm Technologies Inc., and STMicroelectronics NV, the market penetration levels are also high.
August 2022: Renesas Electronics Corporation, a supplier of advanced semiconductor solutions, announced the development of a new generation of Si-IGBTs, which will be offered in a small footprint while providing low power losses. Aimed at next-generation electric vehicle (EVs) inverters, AE5-generation IGBTs will be mass-produced starting in the first half of 2023 on Renesas' 200- and 300-mm wafer lines at the company's factory in Naka, Japan.
July 2022: Samsung Electronics Co., Ltd., the Global innovator in advanced memory technology, announced that it has successfully developed the second generation of its pioneering SmartSSD. The SmartSSD is playing an increasingly important role, especially with the growth of next-generation technologies such as AI, machine learning, and 5G/6G, which require large amounts of data processing.
APAC Semiconductor Device Market Leaders
Nvidia Corporation
Intel Corporation
Kyocera Corporation
Qualcomm Incorporated
STMicroelectronics NV
*Disclaimer: Major Players sorted in no particular order
APAC Semiconductor Device Market News
- June 2022: On semi, a global intelligent power and sensing technology company announced a new 10BASE-T1S Ethernet controller designed to provide reliable multi-point communication in industrial settings. The NCN26010 enables more than 40 nodes on a single twisted pair, exceeding five times the amount of nodes requested by the IEEE 802.3cg standard, to reduce installation cost and set-up complexity.
- June 2022: Advanced Semiconductor Engineering Inc. launched VIPack, an advanced packaging platform that enables vertically integrated package solutions. VIPackrepresents ASE's next generation of 3D heterogeneous integration architecture that extends design rules and achieves ultra-high density and performance. The platform leverages advanced redistribution layer (RDL) processes, embedded integration, and 2.5D and 3D technologies to help customers achieve unprecedented innovation when integrating multiple chips within a single package.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Technological Trends
4.3 Industry Value Chain Analysis
4.4 Assessment of the Impact of COVID- on the Industry
4.5 Industry Attractiveness - Porter's Five Forces Analysis
4.5.1 Bargaining Power of Suppliers
4.5.2 Bargaining Power of Buyers
4.5.3 Threat of New Entrants
4.5.4 Threat of Substitutes
4.5.5 Intensity of Competitive Rivalry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Adoption of Technologies like IoT and AI
5.1.2 Industry 4.0 Investments Driving The Demand For Automation
5.2 Market Challenges
5.2.1 Supply Chain Disruptions Resulting in Semiconductor Chip Shortage
6. MARKET SEGMENTATION
6.1 By Device Type
6.1.1 Discrete Semiconductors
6.1.2 Optoelectronics
6.1.3 Sensors
6.1.4 Integrated Circuits
6.1.4.1 Analog
6.1.4.2 Logic
6.1.4.3 Memory
6.1.4.4 Micro
6.1.4.4.1 Microprocessors (MPU)
6.1.4.4.2 Microcontrollers (MCU)
6.1.4.4.3 Digital Signal Processors
6.2 By Countries
6.3 China
6.4 Japan
6.5 India
6.6 Rest of Asia-Pacific
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Intel Corporation
7.1.2 Nvidia Corporation
7.1.3 Kyocera Corporation
7.1.4 Qualcomm Incorporated
7.1.5 STMicroelectronics NV
7.1.6 Micron Technology Inc
7.1.7 Xilinx Inc
7.1.8 NXP Semiconductors NV
7.1.9 Toshiba Corporation
7.1.10 Texas Instruments Inc
7.1.11 Taiwan Semiconductor Manufacturing Company (TSMC) Limited
7.1.12 SK Hynix Inc
7.1.13 Samsung Electronics Co Ltd
7.1.14 Fujitsu Semiconductor Ltd
7.1.15 Rohm Co Ltd
7.1.16 Infineon Technologies AG
7.1.17 Renesas Electronics Corporation
7.1.18 Advanced Semiconductor Engineering Inc
7.1.19 Broadcom Inc
7.1.20 ON Semiconductor Corporation
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
APAC Semiconductor Device Industry Segmentation
The study analyzes the market of semiconductor devices for industries in terms of the revenue accrued. For the scope of the study, the report includes devices such as Discrete Semiconductors, Sensors, and Integrated Circuits for the market sizing calculation, and all the other devices, such as passive components, are excluded from the study. The study also covers the activities of major players in the market along with their current strategies, recent developments, and product offerings.
Asia-Pacific Semiconductor Device Market for Industrial Applications is segmented by Device Type (Discreet Semiconductors, Optoelectronics, Sensors, Integrated Circuits (Analog, Logic, Memory, Micro (Microprocessors, Microcontrollers, Digital Signal Processors)) and by country (China, India, Japan, and Rest of Asia Pacific). The market sizes and forecasts are provided in terms of value (USD billion) for all the above segments.
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Frequently Asked Questions
What is the current APAC Semiconductor Device Market For Industrial Applications Industry size?
The APAC Semiconductor Device Market For Industrial Applications Industry is projected to register a CAGR of 9.5% during the forecast period (2024-2029)
Who are the key players in APAC Semiconductor Device Market For Industrial Applications Industry?
Nvidia Corporation, Intel Corporation, Kyocera Corporation, Qualcomm Incorporated and STMicroelectronics NV are the major companies operating in the APAC Semiconductor Device Market For Industrial Applications Industry.
What years does this APAC Semiconductor Device Market For Industrial Applications Industry cover?
The report covers the APAC Semiconductor Device Market For Industrial Applications Industry historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the APAC Semiconductor Device Market For Industrial Applications Industry size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
APAC Semiconductor Device Market For Industrial Industry Report
Statistics for the 2024 APAC Semiconductor Device For Industrial Applications market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. APAC Semiconductor Device For Industrial Applications analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
