Global Semiconductor Market to Boost in Coming Years – Projected to Reach Worth USD 820.1 Billion by 2028
Published | 25 March 2022
The global Semiconductor market's growth is attributable to the ever-increasing demand for consumer electronic devices and the emergence of advanced technologies like artificial intelligence, machine learning, IoT, etc..
A recent study by the strategic consulting and market research firm; BlueWeave Consulting revealed that the Global Semiconductor market was worth USD 550.2 billion in 2021 and is anticipated to reach USD 820.1 billion by 2028 at a CAGR of 5.3%. The growth rate of the market is driven by the massive demand for consumer electronic devices created owing to the growing population, escalating household incomes, increasing digitization combined with rapid urbanization.
Technological Advancements Coupled With The Surge In Demand For Consumer Electronic Devices Driving Global Semiconductor Market Growth
Technology is becoming more autonomous, virtual, connected, and intelligent, increasing the significance of the superconductors for a wide range of industries like smartphones, computers, smart homes, refrigerators, air conditioners, etc. The semiconductors function as translators from the physical world to the digital world. For instance- In a smartphone’s digital camera, the semiconductor sensors inside the camera convert the image of what the lens sees into digital data. Moreover, numerous emerging technologies entailing artificial intelligence, industrial internet of things, automotive electronics, and augmented / virtual reality are becoming significant across different industries. Consequently, more and more companies find ways to use them to innovate and develop new products and revolutionize their businesses, thus making a significant contribution to the demand for semiconductors.
The Change In The Pattern Of Global Trade And High Manufacturing Costs Impede The Global Semiconductor Market Growth
Change in the trade policies and a shift towards protectionist measures adopted by the United States has impacted the global supply chains. Furthermore, the constantly changing semiconductor market and the complicated manufacturing process are expected to slow down the growth and demand for semiconductors during the forecast period. Additionally, the massive production costs of semiconductors and high initial costs of production with uncertain returns are a major challenge expected to hamper the growth of the semiconductor market during the forecast period 2022-2028.
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Memory Devises Segment Dominates The Market Share Due To High Demand Of Consumer Electronic Devices.
Amidst the segmentation, memory devices accounted for the largest market share in 2021 owing to the rapid adoption of technological advancements like AR/VR, cloud computing, etc., and their integration in end-user devices. Moreover, the high cost of memory products like NAND flash chips and DRAM is responsible to a large extent for their high market share. For instance- In the third quarter of 2021, the global semiconductor market was led by strong sales of memory products such as DRAM and NAND flash. The NAND flash market significantly expanded. The logical devices segment is anticipated to witness the highest growth rate during the forecast period. The MPU and MCU show stagnant growth owing to weak shipments and investments in smartphones, computers, etc.
Impact Of COVID-19 On The Semiconductor Market
The semiconductor industry has been severely impacted by the abrupt outbreak of the COVID-19 pandemic. During the initial phases in 2020, companies and manufacturing facilities worldwide were shut down due to the stringent lockdown restrictions creating uncertainty in the stock market and declining business confidence. On the other hand, it escalated digitization, thus increasing the significance of digital technologies in connecting people and businesses to function. 2020 witnessed a high surge in demand for both companies as well as consumer customers. Therefore, the demand for semiconductors remained high despite the supply chain issues due to the Covid-19 wave.
Asia-Pacific Dominates The Global Semiconductors Market In 2021 And Is Projected To Exhibit The Highest Growth Rate During The Forecast Period 2022-2028
The market is categorized into North America, Europe, the Asia-Pacific, Latin America, and the Middle East & Africa. Asia-Pacific leads the market with the highest share in 2021 due to the adoption of high-end technology-based devices, growing consumer demand for electronic devices, and low prices. China in Asia-Pacific is expected to grow with the highest CAGR during the forecast period due to the presence of local component manufacturing. Asia- Pacific is followed by North America in terms of growth rate as a result of high investment in the research and development activities. Latin America, the Middle East, and Africa are expected to register a healthy market growth rate on account of rising consumption of smartphones, TVs, etc., and the presence of skilled labor, respectively.
The global semiconductor market is fragmented with numerous players serving the market. The key players dominating the global semiconductor market are Samsung Electronics, Intel, Qualcomm, Broadcom, SK Hynix, Toshiba, Taiwan Semiconductors, Texas Instruments, Micron Technology, Maxim Integrated Products, NXP Semiconductors N.V., NVIDIA, and other prominent players. The key marketing strategies adopted by the players are launching new and advanced product launches investing in new technologies, collaborations, partnerships, and acquisitions to expand their customer reach.
The report's in-depth analysis provides information about growth potential, upcoming trends, and the global Semiconductor market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the global Semiconductor market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
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