Semiconductor Device Market In Communication Industry Market Size

Semiconductor Device Market Analysis

The semiconductor device market in the communication industry is valued at USD 207.9 billion in the current year and is expected to register a CAGR of 7.5% during the forecast period to become USD 299.5 billion by the next five years.

• Wired or wireless semiconductors form an important part of communications technology, from network connectivity, base stations, and routers to phones, laptops, and other connected devices.
• In recent years, wireless technology has revolutionized the communication industry, with mobile subscriptions across the world growing at a rapid rate. The most familiar wireless application is the mobile phone, where smartphones account for a major share of all mobile subscriptions globally. Today's cell phones mostly use 4G wireless communications systems. The data transmission standards for 4G are extremely fast, and 5G systems currently in development will be even faster.
• The regional governments are taking initiatives to support the global rollout of 5G and are driving the growth of the semiconductor device market in the communication industry. For instance, the European Commission has established a public-private partnership to develop 5G technology. As a result, the European Commission has announced over GBP 700 million (~USD 889.5 million) in public funding to support the rollout of 5G across Europe through its Horizon 2020 program.
• Furthermore, investments in supporting IT infrastructure have also been growing to support the growing penetration of digital technologies and a growing number of internet users. For instance, by 2025, about 45 new data centers will come up in India, attracting investment of nearly USD 10 billion since 2020. Such trends generate a favorable outlook for the studied market's growth during the projected timeline.
• However, as miniaturization is one of the high-priority trends in the semiconductor industry, the increasing demand for smaller chips is expected to hinder the market's growth, as shrinking chip size significantly increases design and manufacturing complexity.
• Moreover, the pandemic increased the 5G deployment, digital transformation, and demand for high-speed network connectivity due to the remote work culture. The communication industry has been greatly impacted because communications are crucial to the efficient running of various industries, including the medical, governmental, and private sectors.