"Catapult Your Business to Fore, Gain Competitive Advantage "
The global semiconductor market is valued at USD 488.07 billion in 2018 and is projected to reach USD 730.29 billion by 2026, exhibiting a CAGR of 5.2% during the forecast period.
Semiconductor market growth is attributed to the increasing consumption of consumer electronics devices across the globe. Additionally, the emergence of AI, IoT, and machine learning technologies is providing opportunities to market development. These technologies aid memory chips to process large data in less amount of time. Moreover, the increasing demand for faster and advanced memory chips in industrial applications will drive the market growth over the forecast timeline.
Get comprehensive study about this report by, request a free sample copy
“Increasing Implementation of IoT, AI and Wireless Communications in the Semiconductor Industry to Boost the Market Growth”
The increasing penetration of AI, IoT, and wireless connected devices is creating a huge demand for advanced semiconductors across the globe. A majority of these new inventions are equipped with a single system on a chip (SoC) to offer high levels of integration. Additionally, SoC also allows the devices to operate with high power efficiency and enhanced security, as it integrates processors, memory, RF transceivers, sensors, power management, and connectivity in a single unit.
“Rising Consumption of Consumer Electronics Goods to Aid the Market Growth”
The increasing household disposable income level coupled with the rapidly growing population and increasing urbanization is creating the huge demand for advanced consumer electronics devices. IC chips are integrated in several electronics devices, including smartphones, washing machines, TVs, and refrigerators etc. for their efficient and appropriate functioning. Several leading consumer electronics brands, including Samsung, Apple, and Huawei are making large investments in introducing new devices to cater to the increasing consumer demand advanced devices, supporting the semiconductors market growth.
“Increasing Demand of Integrated Circuit’s in Developing Economies is Boosting the Growth of the Market”
China is expected to witness strong demand of mobile chips, due to emerging manufacturing and assembling plants of several well known smartphone manufacturers namely, Apple and Oneplus. Moreover, Taiwan’s semiconductor industry depicts significant growth, accounting huge number of Taiwanese personal computer manufacturers and their increasing investments in research and development sector. Taiwan is well known for manufacturing advance technology driven and compact integrated circuits across Asia Pacific, hence showing lucrative growth across the market.
“The Memory Devices Segment is Anticipated to Depict the Highest Growth Rate in the Forecast Period”
The global semiconductor market is segmented by Componentss, which is further segmented into memory and logic devices, analog IC, MPU and MCU, discrete power devices, sensors, and others.
Memory devices are expected to drive the overall market owing to the ongoing technological advancements such as virtual reality and cloud computing in their end-user devices. High average selling price for NAND flash chips and DRAM play a major role in generating market revenue. Similarly, logic devices used for special purpose application-specific signal processor (ASSP) and application-specific integrated circuit (ASIC) are projected to be at the highest market growth rate over the forecast period.
MPU (microprocessors) and MCU (microcontroller) depict stagnant market growth due to the frail shipments and investment for the notebook PCs, computers and standard desktops. In the current market scenario, the increasing popularity of IoT based powerful electronics is stoking the demand for powerful processors and controllers. Hybrid MPU and MCU offer real-time embedded processing and controlling for topmost IoT based applications, thus leading to substantial market growth.
Analog ICs are anticipated to portray progressive growth with limited demand from the networking and communication industry. Few emerging trends for the growing demand of analog integrated circuit include signal conversion, automotive-specific analog applications and power management, hence enabling the rising demand for the discrete power devices.
Comparatively, sensors are projected to witness moderate growth owing to the changing requirement of hybrid and mix technology in the communication and automotive industry. The other segment consists of DSP (digital signal processing), that is likely to represent steady growth, due to minimum demand in this industry.
“Automotive Application Segment is Projected to Dominate the Market in the Near Future”
By application, the market is bifurcated into networking and communications, data processing, industrial, consumer electronics, automotive and government.
Automotive application is estimated to witness higher growth rate due to increasing penetration rates of hybrid and electric vehicles, that requires twice the semiconductors of conventional cars with strong market potential for autonomous driving. Light detection and ranging (LiDAR), safety and convenience and advanced driver-assistance systems (ADAS) are expected to gain more attention due to the rising demand for automated and semiconductor integrated vehicles.
To get details on market share, speak to analyst
Industrial application segment is estimated to grow progressively tend to rise due to the implementation of Industry 4.0, IoT, artificial intelligence and big data, thus enhancing the manufacturing processes across varied industries. Though the smartphone market is highly saturated due to the introduction of 5G technology and continuous high replacement rate of the smartphones, the networking and communication segment is anticipated to depict significant market growth, owing to increasing necessity for the connectivity worldwide.
Data processing application holds progressive market share owing to the strong need and sales of smartphones and other connected devices, accelerating the demand for memory and storage devices. Consumer electronics such as gaming consoles, wearable devices, and other electronic devices play an important role in the entire market, thus enables the usage of electronic gaming across various countries. The government application segment signifies steady growth due to limited government investment and projects worldwide.
Asia Pacific holds the largest market share and is projected to exhibit highest growth in this market value across the globe. The increasing adoption of high-end technology devices coupled with the declining electronics prices is leading to an uptake in consumption of consumer electronics devices. Moreover, technological evolution such as LTE and IoT is supporting the adoption of electronics products, thereby driving the Asia Pacific semiconductor market growth.
Asia Pacific Semiconductor Market Size, 2018
To get geographical overview of this market, request a free sample copy
North America market is estimated to exhibit dynamic growth rate that is driven by the increasing investments in R&D activities. According to the Semiconductor Industry Association (SIA), the U.S. semiconductor industry expenditures in R&D increased at a compound annual growth rate of about 7.3 percent from 1998 to 2018. Expenditures in R&D activities by the U.S. companies tend to be consistently high, regardless of cycles in annual sales, which reflects the importance of investing in R&D production. In 2018, the R&D investments in the U.S. semiconductor industry totaled at USD 38.7 billion.
Additionally, the market in Europe will witness substantial growth due to the increasing consumption of semiconductors in telecom & network, as well as the automotive industry. The companies across the region are making investments in innovating new technologies and an increase in production capabilities to cater to the increasing demand for advanced devices and components. Moreover, the increasing consumption of consumer goods across the UK, France, and Germany will support the growth of this industry in Europe over the forecast timeline.
Furthermore, the Latin American semiconductor market will witness a growth owing to the increasing consumption of smartphones, TVs, and Laptops across Brazil and Mexico. Consumers across the region are making investments in purchasing high-end electronic devices, owing to their steadily rising disposable income levels. The availability of skilled labor forces coupled with rapid innovations in semiconductor technologies will drive the industry growth in MEA. The increasing demand for advanced industrial electronics and high-end computing technologies is further expected to propel the regional market growth over the forecast timeline.
“Broadcom Focusses on Developing Innovative Products to Strengthen its Offerings"
Broadcom Inc. announced the availability of 3*3 Wi-Fi 6 chip namely BCM6710, specially designed for WLAN applications and set-up boxes. This is a highly optimized chip integrated with RF power amplifiers, that paves the way for high bandwidth, low-latency applications including 4K UHD video streaming, augmented reality (AR) and many more.
“Major Players are Focusing on Enhancing their Business Strategies through Acquisitions”
In the current scenario, Broadcom Inc. hinges on the strategy to combine best-of-breed technology in the semiconductor and infrastructure solutions to deliver comprehensive technology-based products to the major business and government customers. The company believes in financing the acquisitions, as well as invests extensively in research and development (R&D), ensuring their products to retain technology leadership. Such strategies aid in developing robust business models for diversified and sustainable financial results.
The growth is attributed to hybrid, mix and 5G technologies including logic and memory devices, microprocessors and micro-controllers, an aggregate system with high adaptability to various industrial applications. In the coming future, semiconductors will become an ideal solution for high-rise industrial applications.
The research report offers an in-depth analysis of the market. It further provides details on the adoption of semiconductors products across several regions. Information on trends, drivers, opportunities, threats, and restraints of the market can further help stakeholders to gain valuable insights into the market. The report offers a detailed competitive landscape by presenting information on key players, along with their strategies, in the market.
An Infographic Representation of Semiconductor Market
To get information on various segments, share your queries with us
Value (USD billion)
Fortune Business Insights says that the value of this market was USD 488.07 billion in 2018
The market is projected to reach USD 730.29 billion by 2026.
The market will grow at the rate of 5.2% CAGR. These semiconductors are allowing the semiconductor manufacturing companies to provide reliable, fitted, flexible and technology driven semiconductors in the market.
The Asia Pacific is expected to hold the largest market growth valuing USD 264.14 billion in 2018 owing to the increasing adoption of high-end technology devices
Memory Devices Components segment is expected to be the leading segment during the forecast period
Rising consumption of consumer electronics goods to aid the market growth in the forecasted timeline
Broadcom, Inc., Intel Corporation and Qualcomm are the top players in this market
The Asia Pacific is projected to hold the largest market share, owing to the presence of emerging players in countries, such as China and Japan.
Automotive application segment is expected to witness highest growth during the forecast period
Increasing implementation of IoT, AI and Wireless communications in the semiconductor industry to boost the market growth
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm