APAC Semiconductor Device Market For Industrial Applications Market Size

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.