Semiconductor Device Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 0.73 Trillion |
| Market Size (2029) | USD 1.07 Trillion |
| CAGR (2024 - 2029) | 8.03 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Semiconductor Device Market Analysis
The Global Semiconductor Device Market size is estimated at USD 0.73 trillion in 2024, and is expected to reach USD 1.07 trillion by 2029, growing at a CAGR of 8.03% during the forecast period (2024-2029).
The semiconductor industry is witnessing rapid growth, with semiconductors emerging as the basic building blocks of all modern technology. The advancements and innovations in this field are resulting in a direct impact on all downstream technologies.
- The semiconductor industry 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, Internet of Things, and 5G, coupled with competition among key players and consistent spending on R&D.
- The study covers various semiconductors offered by the vendors and the industries utilizing them. The estimates for the end-user industries are derived based on the type of application the semiconductors provide in that industry.
- The outbreak of COVID-19 across the globe has significantly disrupted the supply chain and production of the studied market in the initial phase of 2020. For circuit and chipmakers, the impact was more severe. Due to labor shortages, many of the package and testing plants in the Asia-Pacific region reduced or even suspended operations. This also created a bottleneck for end-product companies that depend on semiconductors.
- However, according to the Semiconductor Industry Association, after Q1 of 2020, the semiconductor industry started the recovery. Despite logistical challenges related to the coronavirus, 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. The COVID-19 pandemic has increased the demand for semiconductors across the consumer electronics and automotive sectors, mainly due to the growing adoption of EVs post-pandemic.
Semiconductor Device Market Trends
This section covers the major market trends shaping the Semiconductor Device Market according to our research experts:
Integrated Circuit to Hold Significant Share
- The rising proliferation of smartphones, feature phones, and tablets is driving the market. Analog ICs are used in a wide range of applications, including third and fourth-generation (3G/4G) radio base stations and portable device batteries. RFICs (radio frequency ICs) are analog circuits that usually run in the frequency range of 3 kHz to 2.4 GHz (3,000 hertz to 2.4 billion hertz) circuits that would work at about 1 THz (1 trillion hertz). They are widely used in cell phones and wireless devices. As they are under development, the analog IC market in this segment is expected to grow.
- In the overall IC market, logic ICs are the widely adopted component and are expected to witness significant growth over the forecast period. Logic chips have a wide range of applications in almost every digital product ranging from smartphones to arithmetic-logic units (ALU). In recent years, the growth in the automotive and smartphone industry has mainly driven the growth of the logic semiconductor component. However, the growth in applications like HPC and AI is now expanding the scope of logic components.
- The market has different types of memory, such as DRAM, SRAM, Nor Flash, NAND Flash, ROM, and EPROM, among others. 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 the major factors driving the demand for DRAM products.
- The increasing demand for data centers is also boosting the demand for memory components. Currently, large data center projects in North America have contributed to the strong demand for memory, such as DRAM. However, according to the measure of data center space per user, China's internet data centers are poised to grow to at least 22 times that of the United States, or at least ten times the current space of Japan. Hence, DRAM has a significant opportunity for growth and thus is impacting the semiconductor industry.
Automotive Sector to hold a Significant Market Share
- Semiconductor chips have become an integral part of modern-day vehicles, owing to their widespread use in various functions of vehicles. Chips used in cars can take many forms ranging from single components containing a single transistor to intricate integrated circuits controlling a complex system. For instance, chips are found in the LED light elements of vehicles. Every single diode inside an LED light unit is a chip that emits light. LED headlights alone account for a vast number of chips in modern-day cars. The headlights also need control units to make them function.
- The growing need for better safety and advanced driver assistance systems (ADAS) in cars has accelerated the demand for semiconductors. Intelligent functions, like backup cameras, adaptive cruise control, blind-spot detection, lane change assist, airbag deployment, and emergency braking systems, are made possible through semiconductor technologies. Further, ADAS covers a broad array of sensors, including image and camera sensors for vision-based features, ultrasonic sensors for short-range features like parking assist, and radar and lidar sensors for object detection under dark or foggy conditions.
- In March 2022, Renesas Electronics Corporation, a supplier of advanced semiconductor solutions, announced the expansion of its collaboration with Honda in the field of ADAS. Previously, Honda adopted Renesas' R-Car automotive system on a chip (SoC) and RH850 automotive MCU for its Honda SENSING Elite system featured in the Legend. With the expansion of the partnership, Honda will use R-Car and RH850 in the Honda SENSING 360 omnidirectional safety and driver assistance system.
- The increasing demand for electric vehicles is expected to open new growth opportunities for the studied market. An increased number of electronic devices and sensors are used in electric vehicles, driving the demand for semiconductor chips. For instance, according to the International Energy Agency (IEA), the number of battery electric vehicles (BEV) in use has increased from 1.2 million in 2016 to 11.3 million in 2021 globally.
- Furthermore, China was the leading producer of electric vehicles in 2021 (Source: IEA). Sales in the European region also showed continued robust growth (up 65% to 2.3 million) after the 2020 boom, which also increased in the United States after two years of decline. With EV sales expected to follow a similar growth pattern, the automotive industry is expected to significantly impact the growth of the studied market during the forecast period.
Semiconductor Device Industry Overview
The Global Semiconductor Device Market is witnessing fluctuation with growing consolidation, technological advancement, and geopolitical scenarios. Further, in a market where the sustainable competitive advantage through innovation is considerably high, the competition will only increase. In such a situation, the brand identity plays a major role, considering the importance of quality that the end-users expect from a semiconductor manufacturing player. 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.
The level of innovation, time-to-market, and performance are the key terms by which the players differentiate themselves in the market. Overall, the intensity of competitive rivalry is moderately growing over the forecast period.
- July 2022 - Ericsson, Qualcomm Technologies Inc., and French aerospace company Thales are planning to take 5G out of this world and across a network of Earth-orbiting satellites. After having conducted detailed research, which includes multiple studies and simulations, the parties plan to enter smartphone-use-case-focused testing and validation of 5G non-terrestrial networks (5G NTN).
- March 2022 - Intel issued the first phase of its investment plans of approximately EUR 80 billion in the European Union over the next decade across the entire semiconductor value chain, including research and development (R&D), manufacturing, and packaging technologies. In this investment, the company plans to invest approximately EUR 17 billion in establishing a semiconductor fab mega-site in Germany, along with the development of a new R&D and design facility in France, and to invest in R&D, manufacturing, and foundry services in Italy, Ireland, Poland, and Spain.
Semiconductor Device Market Leaders
Intel Corporation
Nvidia Corporation
Kyocera Corporation
Qualcomm Incorporated
STMicroelectronics NV
*Disclaimer: Major Players sorted in no particular order
Semiconductor Device Market News
- September 2022 - STMicroelectronics introduces its stellar P6 automotive MCU for EV platform system integration, targeting the coming electrified drivetrains and domain-oriented, over-the-air updatable systems that are the foundation of the next generation of EVs.
- August 2022 - Qualcomm Technologies Inc. announced that its flagship Snapdragon 8+ Gen 1 mobile platform is powering Samsung Electronics Co. Ltd's latest foldable smartphones, the Samsung Galaxy Z Fold4 and Galaxy Z Flip4. Samsung and Qualcomm collaborate to define the next generation of premium Android experiences.
Semiconductor Device Market Report - 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-19 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 Increased Deployment of 5G and Rising Demand for 5G Smartphones
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 End-user Vertical
6.2.1 Automotive
6.2.2 Communication (Wired and Wireless)
6.2.3 Consumer
6.2.4 Industrial
6.2.5 Computing/Data Storage
6.3 By Geography
6.3.1 United States
6.3.2 Europe
6.3.3 Japan
6.3.4 China
6.3.5 Korea
6.3.6 Taiwan
6.3.7 Rest of the World
7. SEMICONDUCTOR FOUNDRY LANDSCAPE
7.1 Foundry Business Revenue and Market Shares by Foundries
7.2 Semiconductor Sales - IDM vs Fabless
7.3 Wafer Capacity by end of December 2021 based on Fab Location
7.4 Wafer Capacity by the Top Five Semiconductor Companies and an Indication Of Wafer Capacity By Node Technology
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles
8.1.1 Intel Corporation
8.1.2 Nvidia Corporation
8.1.3 Kyocera Corporation
8.1.4 Qualcomm Incorporated
8.1.5 STMicroelectronics NV
8.1.6 Micron Technology Inc.
8.1.7 Xilinx Inc.
8.1.8 NXP Semiconductors NV
8.1.9 Toshiba Corporation
8.1.10 Texas Instruments Inc.
8.1.11 Taiwan Semiconductor Manufacturing Company (TSMC) Limited
8.1.12 SK Hynix Inc.
8.1.13 Samsung Electronics Co. Ltd
8.1.14 Fujitsu Semiconductor Ltd
8.1.15 Rohm Co. Ltd
8.1.16 Infineon Technologies AG
8.1.17 Renesas Electronics Corporation
8.1.18 Advanced Semiconductor Engineering Inc.
8.1.19 Broadcom Inc.
8.1.20 ON Semiconductor Corporation
- *List Not Exhaustive
9. FUTURE OUTLOOK OF THE MARKET
Semiconductor Device Industry Segmentation
The study analyzes the market of semiconductor devices 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.
| By Device Type | ||||||||||
| Discrete Semiconductors | ||||||||||
| Optoelectronics | ||||||||||
| Sensors | ||||||||||
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| By End-user Vertical | |
| Automotive | |
| Communication (Wired and Wireless) | |
| Consumer | |
| Industrial | |
| Computing/Data Storage |
| By Geography | |
| United States | |
| Europe | |
| Japan | |
| China | |
| Korea | |
| Taiwan | |
| Rest of the World |
Semiconductor Device Market Research FAQs
How big is the Global Semiconductor Device Market?
The Global Semiconductor Device Market size is expected to reach USD 0.73 trillion in 2024 and grow at a CAGR of 8.03% to reach USD 1.07 trillion by 2029.
What is the current Global Semiconductor Device Market size?
In 2024, the Global Semiconductor Device Market size is expected to reach USD 0.73 trillion.
Who are the key players in Global Semiconductor Device Market?
Intel Corporation, Nvidia Corporation , Kyocera Corporation , Qualcomm Incorporated and STMicroelectronics NV are the major companies operating in the Global Semiconductor Device Market.
Which is the fastest growing region in Global Semiconductor Device Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Global Semiconductor Device Market?
In 2024, the Asia-Pacific accounts for the largest market share in Global Semiconductor Device Market.
What years does this Global Semiconductor Device Market cover, and what was the market size in 2023?
In 2023, the Global Semiconductor Device Market size was estimated at USD 673.05 billion. The report covers the Global Semiconductor Device Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Global Semiconductor Device Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Semiconductor Devices Industry Report
Statistics for the 2023 Semiconductor Devices market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Semiconductor Devices analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
