Semiconductor In Healthcare Market Size

Semiconductor In Healthcare Market Analysis

The semiconductor in healthcare market size is estimated at USD 7.47 billion in the current year. It is expected to reach USD 12.82 billion by 2028, registering a CAGR of 11.41% during the forecast period. 

Many devices used in the healthcare industry rely on semiconductor manufacturing technology. Semiconductor components, such as sensors, integrated circuits (ICs), discrete devices, memory power management devices, etc., are driving various applications in fields including medical imaging, clinical diagnostics and therapy, and portable and home healthcare.

• The market is witnessing various developments in medical devices that are expected to increase the need for advanced semiconductors. Portable dialysis machines are gaining market traction, and vendors like Baxter have received FDA clearance post-pandemic that is designed to directly connect electronic medical records for patients' prescriptions and treatment data. Such developments are driving the need for advanced semiconductors.
• Factors like increasing use of remote patient monitoring devices, development in diagnostic and treatment modalities, and high incidence of non-communicable diseases are also expected to drive the growth of the semiconductor in the healthcare market. For instance, the American Cancer Society predicts that there will be 236,740 new cases of lung and bronchus cancer diagnosed in the United States overall in 2022. The state of Florida is reported to have the most significant number of these instances. Even though there are multiple treatment options, modern cryosurgery technology gives a complete cure.
• Furthermore, according to the IARC's World Cancer Report, despite constant progress in cancer prevention and treatment, the global cancer burden is still growing as the number of new cases is anticipated to increase by 50 percent between 2018 and 2040. IARC detected 10.1 million new cancer cases in 2000 and 18.1 million in 2018 and projects that by 2040, there will be 27 million new cancer cases per year.
• A significant number of healthcare professionals and hospitals still use various legacy hardware that need to be in line with current technological standards and are incapable of upgrading to new tech. In addition to this, there's a huge market for pre-owned medical technology across the world owing to the need for more availability and funding for such devices, which is hampering the growth and adoption of new technology.
• The Russia-Ukraine war is impacting the supply chain of semiconductors. Being a significant supplier of raw materials for producing semiconductors and electronic components, including various equipment. The dispute has disrupted the supply chain, causing shortages and price increases for these materials, impacting manufacturers and potentially leading to higher costs for end-users.
• Further, according to UkraineInvest, copper prices escalated to USD 10,845/mt in early March 2022. The ongoing war between Russia and Ukraine, high energy costs, and stricter emissions standards in Europe have been noted as the primary reasons for the continued shortage of copper.