Semiconductor Market (By Component: Logic Devices, MPU,Power Devices, MCU, Analog IC, Memory Devices, Sensors, Discrete Power Devices, and Others; Application: Data Processing, Industrial, Networking & Communications, Consumer Electronics, Automotive, and Government) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2021 - 2030


The global semiconductor market was estimated at USD 430 billion in 2021 and expected to reach USD 808.5 billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 6.6% during the forecast period 2021 to 2030.

Semiconductor Market Size 2021 to 2030

Growth Factors

The extensive usage of the semiconductors in a wide range of the end use applications such as electronics, industrial equipment, automotive, networking and communications, and data processing is the major factor that boosts the growth of the global semiconductors market. The rising penetration of the digital technologies and rising adoption of various consumer electronics across the globe is fostering the growth of the semiconductor market. Moreover, the rising popularity of the latest technologies such as artificial intelligence and internet of things that allows the memory chips to process huge volume of data in less time is expected to provide growth opportunities to the market players in the foreseeable future. The rapidly growing AI, machine learning, IoT, and wireless communications devices are spurring the demand for the semiconductors. The rapid growth in the work from home trend across the globe has significantly fostered the demand for the PCs and laptops that resulted in the significant amount of semiconductors across the globe.

The rapid urbanization and industrialization coupled with the government investments for the development of numerous smart cities is expected to foster the demand for the semiconductors across the globe. The growing demand for the semiconductors in the industrial equipment and automotive sector has significantly contributed towards the increased consumption of the semiconductors. The growing popularity of electric vehicles and its rising adoption among the consumers is fueling the growth of the global semiconductors market. Moreover, the recent outbreak of the COVID-19 pandemic resulted in the supply chain disruptions which created a disturbance in the semiconductor industry. However, the shortage of the semiconductors is hampering the market growth but it will ramp up by 2023 owing to the rising investments by the market players to expand semiconductor production facilities to reduce the gap between demand and supply of the semiconductors. Furthermore, the growing demand for the integrated circuits in the developing nations is expected to boost the semiconductors market. This is simply owing to the rising demand for the smartphones that propels the demand for the mobile chips.

Component Insights

Based on component, the MPU and MCU segment accounted largest revenue share in 2020 and is predicted to remain its dominance over the forecast period. The extensive utilization of the MPUs and MCUs in the manufacturing of the devices such as desktops, notebooks, PCs, and laptops has significantly contributed towards the growth of this segment in the past. The on-going trend of the IoT devices and rising demand for the IoT devices is boosting the demand for the powerful controllers and processors, thereby augmenting the growth of the MPU and MCU segment. According to the National Cable and Telecommunications Association, there were around 50.1 billion connected devices in 2020 across the globe. In 2018, this number was around 34.8 billion. The IoT devices is expected to grow significantly in the upcoming future.

On the other hand, the memory devices segment is estimated to be a fastest growing during the forecast period. This can be attributed to the rising penetration of digitalization and rapidly growing number of digital business. The burgeoning demand for the cloud computing and rising adoption of virtual reality is expected to boost the growth of this segment during the forecast period.

Application Insights

Based on application, the networking & communications segment accounted for around 33% of the market share in 2020 and is projected to remain its dominance during the forecast period. This can be attributed to the increased adoption of smartphones and other smart devices across the globe. According to the ITU, around 4 billion people around the globe have access to internet and most of them access to the internet through smartphones. This number is further expected to rise and hence it will augment the growth of this segment exponentially in the forthcoming years.

Semiconductor Market Share, By Application, 2020 (%)

On the other hand, the automotive is expected to be the fastest-growing segment during the forecast period owing to the increased adoption of vehicles in the developed and developing nations. The demand for the private vehicles is extremely high in the developed regions like North America owing to the low availability of public transport and demand for high convenience commute among the population. Furthermore, the rising popularity of the electric vehicles among the global consumers is boosting the demand for the EVs, which in turn is expected to augment the demand for the semiconductors in the upcoming future.

Region Insights

Based on region, Asia Pacific dominated the global semiconductors market in 2020, in terms of revenue and is estimated to sustain its dominance during the forecast period. The Asia Pacific semiconductors market size was valued USD 230.5 billion in 2020. Asia Pacific is characterized by the presence of huge consumer base, rising disposable income, increased demand for the industrial processing and consumer electronic, rising urbanization, and rapid industrialization. All these factors have boosted the consumption of semiconductors. Moreover, countries like China, Taiwan, and South Korea are well-known for their electronics industry. The increased consumption of a wide range of consumer electronics have significantly contributed towards the market growth in this region. Moreover, the rising penetration of IoT devices, AI, and VR are the major factors that will drive the market growth in the forthcoming years.

Semiconductor Market Share, By Region, 2020 (%)

North America and Europe are expected to have a substantial growth rate owing to the presence of strong telecom and automotive industry. The rising investments by the market players in the US in the research and development activities is expected to register a strong growth rate during the forecast period.

Key Companies & Market Share Insights

The market is moderately fragmented with the presence of several local companies. These market players are striving to gain higher market share by adopting strategies, such as investments, partnerships, and acquisitions & mergers. Companies are also spending on the development of improved products. Moreover, they are also focusing on maintaining competitive pricing.

In July 2020, Qualcomm Technologies launched Qualcomm QCS610 and Qualcomm QCS410 system-on-chips, which are known for AI feature and used in the camera technology.

The various developmental strategies like new product launches, acquisition, partnerships, mergers, and government policies fosters market growth and offers lucrative growth opportunities to the market players.

Some of the prominent players in the global semiconductors market include:

  • Intel Corporation
  • Qualcomm Technologies, Inc.
  • Broadcom, Inc.
  • Taiwan Semiconductors
  • Samsung Electronics
  • Texas Instruments
  • SK Hynix
  • Micron Technology
  • NXP Semiconductors
  • Maxim Integrated Products, Inc.

Report Scope of the Semiconductor Market

Report Highlights Details
Market Size USD 808.5 Billion by 2030
Growth Rate CAGR of 6.6% From 2021 to 2030
Largest Market Asia Pacific
Fastest Growing Market North America and Europe
Base Year 2021
Forecast Period 2021 to 2030
Segments Covered Component, Application, Region
Companies Mentioned Qualcomm Technologies, Inc., Broadcom, Inc., Intel Corporation, Samsung Electronics, Taiwan Semiconductors, NXP Semiconductors, SK Hynix, Texas Instruments, Micron Technology, Maxim Integrated Products, Inc.

 

Segments Covered in the Report

By Component

  • Logic Devices
  • MPU
  • Power Devices
  • MCU
  • Analog IC
  • Memory Devices
  • Sensors
  • Discrete Power Devices
  • Others

By Application

  • Data Processing
  • Industrial
  • Networking & Communications
  • Consumer Electronics
  • Automotive
  • Government

By Geography

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Rest of the World

Frequently Asked Questions

What is the current size of semiconductor market?
Precedence Research Predicts, the global semiconductor market size was reached at USD 430 billion in 2021 and projected to hit USD 808.5 billion by 2030.
The major players operating in the semiconductor market are Broadcom, Inc., Intel Corporation, Qualcomm Technologies, Inc., Taiwan Semiconductors, NXP Semiconductors, Samsung Electronics, Texas Instruments, SK Hynix, Micron Technology, Maxim Integrated Products, Inc..
The global semiconductor market was valued at USD 427.2 billion in 2020 and expected to reach USD 808.5 billion by 2030, poised to grow at a compound annual growth rate (CAGR) of 6.6% during the forecast period 2021 to 2030.
The global semiconductors market is primarily driven by the rising demand for the consumer electronics, industrial tools & equipment, automotive products, and networking and communication products.
Asia Pacific dominated the global semiconductors market and is estimated to sustain its dominance during the forecast period.

PROCEED TO BUY

   USD 4500
   USD 7000
   USD 9000

ASK FOR SAMPLE

No cookie-cutter, only authentic analysis – take the 1st step to become an Precedence client

Get a Sample