PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1629334
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1629334
Semiconductor Device Market size was valued at USD 575,309.54 Million in 2023, expanding at a CAGR of 8.90% from 2024 to 2032.
Semiconductor devices are typically produced through a complex process known as semiconductor fabrication or integrated circuit (IC) manufacturing. This process involves the precise manipulation of semiconductor materials to create components with specific electrical properties. Semiconductor devices are fundamental to modern electronics, powering everything from smartphones and computers to medical equipment and renewable energy systems. One of the key benefits of semiconductor devices is their small size and compactness. Unlike older vacuum tube technology, which required large and bulky components, semiconductor devices can be manufactured at extremely small scales. This miniaturization has paved the way for the development of portable and wearable electronics, such as smartphones, fitness trackers, and smartwatches, which are lightweight and easy to carry.
Semiconductor Device Market- Market Dynamics
The increasing adoption of advanced technologies such as AI and iot to propel market demand
The semiconductor devices market has undergone significant transformation in recent years, driven by the increasing adoption of advanced technologies such as AI and IoT. These innovations have brought about revolutionary changes across various industries, including healthcare and automotive, opening up new opportunities for the semiconductor devices market. A major driver of market growth is the explosive rise in data consumption, particularly due to the rollout of 5G. With the proliferation of connected devices, smartphones, and IoT applications, the amount of data generated daily has surged. 5G's enhanced bandwidth and capacity will accommodate this growth, ensuring seamless connectivity for users. Additionally, the semiconductor supply chain is a complex network comprising interconnected stages such as design, manufacturing, testing, and distribution. It begins with chip design, followed by wafer fabrication, assembly, and testing. The final chips are distributed to original equipment manufacturers (OEMs) who integrate them into various electronic devices. The surge in demand for electronic devices, spurred by trends like remote working, e-commerce, and 5G adoption, has outpaced semiconductor manufacturers' supply capacity. This increased demand has strained the supply chain, contributing to shortages. The COVID-19 pandemic further accelerated data usage, especially due to the rise in remote work. This shift also created new opportunities for data generation, prompting data center vendors to invest in expanding infrastructure. For example, according to the National Association of Software and Service Companies (NASSCOM), India's data center market investment is expected to reach approximately USD 4.6 billion by 2025.
Semiconductor Device Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 8.90% over the forecast period (2024-2032)
Based on product type segmentation, power electronics was predicted to show maximum market share in the year 2023
Based on compound segmentation, GaN was the leading segment in 2023
On the basis of region, Asia Pacific was the leading revenue generator in 2023
The Global Semiconductor Device Market is segmented on the basis of Product Type, Application, Compound, and Region.
The market is divided into five categories based on product type: LED, Optoelectronics, RF Devices, Power Electronics and Others. The power electronics segment dominated the semiconductor devices market in 2023 and is expected to maintain its dominance throughout the forecast period. Key industries, such as electric vehicles, renewable energy, and industrial automation, rely heavily on power electronics for efficient power conversion and control, creating a sustained demand for these specialized chips. Additionally, the growing emphasis on energy efficiency is spurring the development of advanced power electronics that minimize energy waste, driving further innovation in semiconductor technology.
The market is divided into six categories based on compound: GaN, GaAs, GaP, GaSb, Sic and Others.The GaN (Gallium Nitride) segment led the market in 2023 by compound, driven by the superior performance of GaN-based semiconductor devices compared to traditional silicon-based alternatives. GaN devices offer high efficiency, wide bandwidth, and the ability to handle higher voltages, making them ideal for a wide range of applications.
Semiconductor Device Market- Geographical Insights
Geographically, this market is widespread into the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. These regions are further divided as per the nations bringing business. Asia Pacific was the leading market in 2023, with China at the forefront of this growth. China's semiconductor industry has rapidly expanded, positioning the country as one of the largest consumers of chips globally. In its pursuit of reducing dependence on imported semiconductor components, China has been working to strengthen its domestic supply chain. For example, in May 2024, China launched the third phase of a government-supported investment fund to boost its domestic semiconductor industry, marking the most significant phase to date. This initiative underscores China's efforts to achieve self-sufficiency amid ongoing US sanctions. The rapid growth of the consumer electronics sector, government efforts to promote domestic manufacturing, rising investment in semiconductor production facilities, the emergence of technologies like artificial intelligence and the Internet of Things, and increasing demand for electric vehicles further contribute to the region's semiconductor market dominance.
The semiconductor device market is semi-consolidated, with trends toward increasing consolidation, technological advancements, and shifting geopolitical factors. The growing vertical integration of foundries and integrated device manufacturers (IDMs) is expected to intensify competition in the market, as companies leverage their financial resources to invest in innovation. Key players in the market include Intel Corporation, Nvidia Corporation, Kyocera Corporation, Qualcomm Incorporated, and STMicroelectronics NV. Many companies, particularly in the U.S., are focusing on advancing manufacturing processes, implementing stringent quality control measures, and conducting thorough testing to offer high-performance semiconductors for end-use applications.
In January 2024, Wolfspeed, Inc., a leading global manufacturer of silicon carbide wafers, expanded its long-term supply agreement with Infineon Technologies AG, valued at approximately USD 275 million. This partnership aims to advance silicon carbide applications in renewable energy, electric vehicles, charging infrastructure, industrial power supplies, and variable speed drives, supporting the growth of electrification and boosting the U.S. semiconductor devices industry.