Semiconductor refers to the material whose conductivity is between conductor and insulator at an average temperature. Semiconductors are used in integrated circuits, consumer electronics, communication systems, photovoltaic power generation, lighting applications, high-power power conversion, and other fields. Such as diode is a device made of a semiconductor. Whether from the perspective of technology or economic development, the importance of semiconductors is huge. The semiconductor materials, including silicon, germanium, gallium arsenide, etc., and silicon is the most influential one among various semiconductor materials in commercial applications.
The global semiconductor market was valued at USD 487.3 Billion in 2018 and projected to reach USD 624.36 Billion in 2027, registering a CAGR of 3.49% from 2020-2027. This is primarily attributed to factors such as the growing adoption of semiconductor in various industries such as data processing, communications, consumer electronics, automotive, comprising both light vehicles and trucks; and industrial including infrastructure, rail services, the military, fossil, and regenerative energy, smart grids, etc. Additionally, the growing demand for solid-state storage and smartphones and PCs projected to impact the robust growth of the global semiconductor market in the future timeline. Moreover, the surge in demand for various semiconductors in the automotive industry, such as microcontrollers (MCUs), sensors and memory, automation, electrification, digital connectivity, and security, will lead to propel the growth of global semiconductor market size in the future periods.
Furthermore, the growth in artificial intelligence-related industry and demand for ethernet equipment, network processors, and application-specific integrated circuits will trigger the global semiconductor market share in the upcoming periods. The epidemic situation of the new coronavirus pneumonia tends to spread globally. The number of confirmed infections in various parts of the world continues to rise. Japan, South Korea, Italy, and other countries have further serious trends. It will inevitably have a specific impact on the global semiconductor market and supply chain. Also, the development of key industries such as 5G and AI and the demand for new energy vehicles and cloud servers will foster the growth of the global semiconductor industry in the forecast span.
Advances in technology such as AI, electric vehicles (EVs), autonomous driving, energy storage, and security; social awareness of issues such as safety and ridesharing; environmental concerns like pollution; and economic considerations including infrastructure spending and growth in Asian markets are all set to reshape the automotive industry. Semiconductor vendors, in particular, are actively developing a wide range of microchips, fusion, and system-on-a-chip devices incorporating AI and machine learning technologies.
Semiconductor demand for both traditional vehicles and EVs/hybrid electric vehicles (HEVs) and many sensors and controls are required to run an engine efficiently and significantly.
The application-level sits at the apex, providing services such as autonomous driving, smart robotics, smart security, and virtual assistance. Additionally, the growing demand for AI chips in the smartphone, autonomous driving, and smart surveillance systems will influence the growth of the semiconductor in the forecast period.
Based on material type, the global semiconductor market classified into Silicon, Germanium, Gallium Arsenide, Silicon Carbide, Gallium Nitride, Gallium Phosphide, and Others. The silicon segment exhibited higher growth potential and projected to gain a significant share in the semiconductor market by 2027. It is due to silicon used in transistors, printed circuit boards, and integrated circuits. Additionally, owing to its resistance to very high temperature and current, it is used in diodes, thyristors, IGBT, MOSFET transistors, etc.
The gallium Arsenide segment will witness a significant growth rate during the forecast period. It is attributable to the applications of gallium arsenide in infrared emitting diodes, laser diodes, integrated circuits at microwave frequencies, and photovoltaic cells.
Based on components, the global semiconductor market segregated into Analog IC, Sensors, Memory Devices, Lighting Devices, Discrete Power Devices, compound semiconductors and Others. The sensors segment held a higher market revenue share in 2019 and will grow with a lucrative rate in the forecast period. It is attributable to the semiconductor sensors used in various industries such as optical sensors, pressure sensors, gas sensors, and in smartphones as touch, acceleration, magnetic reading, and proximity sensors.
The memory devices segment will grow with a significant rate in the forecast period due to the semiconductor use as various memory technique such as PROM, EPROM, EEPROM, Flash memory, and DRAM.
Based on the process, the global Semiconductor Market classified into Water Production, Wafer Fabrication, Doping, Masking, Etching, and Thermal Oxidation. The Wafer Fabrication segment gain a major share in 2019 and estimated to dominate the semiconductor market by 2027. It is owing to it is used for the production of electrical or photonic circuits on semiconductor wafers, including the production of radio frequency (RF) amplifiers, LEDs, optical computer components, and CPUs for computers.
Based on the end-user industry, the global semiconductor market categorized into networking & communication, energy, automotive, computing, consumer electronics, sports & fitness, mobile accessories, gaming, healthcare, and others. The networking & communication segment exhibits the largest market share in 2019 and expected to gain maximum revenue by 2027. It is owing to the huge demand for semiconductors in dc-dc controllers, converters, & regulators; clock generation; clock & data distribution; standard logic; thermal management; voltage & current management; digital potentiometers; and interfaces.
The energy segment will be the fastest-growing segment during the forecast period, attributable to semiconductor used in photovoltaic devices, photoelectrochemical cells, photocatalysis, and artificial photosynthesis.
Based on geography, the global Semiconductor Market segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa. North America projected to provide significant growth opportunities by 2027 due to the growing adoption of semiconductors in various industries such as automotive, energy, automotive, computing, consumer electronics, and healthcare industries. Additionally, the increasing application of AI-based product solutions and services will spur the North America semiconductor industry.
The Asia Pacific will be the fastest-growing segment owing to the huge growth of automotive, energy, and consumer industries.
Companies such as Qualcomm, Samsung Electronics, Toshiba Corporation, Micron Technology, Intel Corporation, Texas Instruments, and SK Hynix Inc. are the key players in the Global Semiconductor Market.
By Material Type
By End-User Industry