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Semiconductors Market size|share|Growth|trends|forecast to 2026

(EnergyIndustry.Net, October 24, 2019 ) Market Overview

• Semiconductors are materials whose electrical conductivity lies between the conductivity of metals and insulators. The property of exhibiting resistance to electrical conductivity in relation with temperature is inversely related to the property possessed by metals.

• The ability to manipulate their electrical conductivities by the addition of impurities makes them, the most suitable materials in the fabrication of diodes, transistors, integrated circuits, and other modern electronics. Silicon, germanium and gallium arsenide are the most commonly used semiconductor materials.

• According to the World Economic Forum and Stanford University’s One Hundred year’s study on AI (AI100), the number of research articles published on Artificial Intelligence has increased by more than 9 times each year since 1996. Close to 20,000 research articles were published in 2017, compared to 10,000 in 2010.

• Investment into AI startups by venture capitalists has increased six-fold since 2000 up to 2018.



Market Dynamics

• Widespread internet connectivity, the growth of the consumer electronics market, demand for IoT enabled devices, cloud services, and Artificial Intelligence (AI) and surging demand for semiconductor devices from the end users are the key factors responsible fueling the growth of the Global Semiconductors market.

• Owing to the increasing telecom semiconductors market share, rising demand for Artificial Intelligence and the need for increased internet speeds is a significant factor responsible for driving the global semiconductors market.

• However, high R&D costs of sophisticated semiconductor devices, high prices of fabrication, security concerns of connected devices and the availability of low-cost alternatives are the crucial aspects restraining the global semiconductors market.

• Privacy and security issues of IoT connected devices is a significant concern for consumers owing to data’s vulnerability to security attacks by hackers.

• According to the Broadband Internet Technical Advisory Group (BITGA), the significant concerns of privacy issues amongst IoT connected devices are security vulnerabilities, insecure communications, unauthenticated communications, unencrypted communications, lack of mutual authentication, lack of network isolation, data leaks from the cloud, and data leaks from and between the devices.

• Automotive Semiconductor Data is vulnerable to cyber-attacks in case of connected cars and automotive infotainment systems. Owing to these reasons, security and privacy concerns of IoT connected devices is an essential factor impeding the growth of the global semiconductors market.



Market Segmentation

• The Global Semiconductors Market has been segmented by product type, component type end-user application, and geography.

• Based on the product type, the market is segmented as intrinsic semiconductors and extrinsic semiconductors. Manipulating the electronic properties of the semiconductor material makes it a potential element in the fabrication of modern electronics like diodes, transistors, Integrated circuits, and others. Owing to these reasons, the extrinsic semiconductors market size is expected to dominate the global semiconductors market in the forecast period.

• Based on the material type, the market is segmented as silicon, silicon carbide, gallium arsenide, germanium, and others. The market value of silicon semiconductors is predominant owing to its broad spread capabilities and functionalities which makes it suitable for the fabrication of semiconductor devices.

• According to the Semiconductor Equipment and Material International organization (SEMI), worldwide silicon wafer shipments in 2018 increased 8% year over year to a record high while 2018 global silicon revenue jumped 31%, exceeding the 10 billion mark for the first time since 2008. Silicon wafer area shipments in 2018 amounted to 12,732 million square inches compared to 11,810 million square inches in 2017. The total revenue generated in 2018 was USD 11.38 billion compared to USD 8.71 billion in 2017 accounting for annual growth of 11.4%. Owing to the increasing demand for silicon wafer semiconductors, the silicon material is anticipated to dominate the global semiconductors market in the future.



Geographical Analysis

• The Global Semiconductors Market is segmented into North America, Europe, Asia Pacific, South America and Rest of the world.

• The Asia Pacific region is further segmented into South Korea, India, Japan, China, and Taiwan.

• The Asia Pacific semiconductor market segment is the most predominant of the Global Semiconductors market owing to the presence of a large number of companies in this region and growing demand for consumer electronics such as smartphones, tablets and rising demand for automobiles from countries like China, Japan, and India.

• Major players who hold a significant market share like Samsung Electronics, Toshiba electronics, and SK Hynix operate from the Asia Pacific region with the presence of their foundries in the Asia Pacific region thereby occupying a major share of the worldwide semiconductor foundry market.

• According to SEMI, the worldwide semiconductor manufacturing and inspection equipment billings reached USD 16.7 billion in the second quarter of 2018 out of which USD 13.2 billion market share of semiconductor inspection and manufacturing equipment was occupied by the Asian countries like Korea, China, Taiwan, and Japan accounting for a whopping 80% global share.

• This indicates the market for semiconductors in Japan and the other specified countries occupies a major share in the global market.

• The Asia-Pacific region accounted for 78% share of the Global Semiconductors Sector Market in terms of total semiconductor equipment sales in 2017. Owing to these reasons, the Asia-Pacific region is anticipated to dominate the global semiconductors market in the future.



Competitive Analysis

• Some of the major players in this market incorporate competitive strategies like mergers and acquisitions to retain their market competitiveness.

• In January 2019, Micron Technologies, a leading provider memory and storage solutions partnered with Qualcomm in the development of next generate vehicle cockpit commute systems.

• In January 2019, ON semiconductors and 3M collaborated in launching the next generation AR0234AT CMOS image sensor integrated with 3M’s next generation digitally enabled smart code sign technology to improve road safety.

• New product launches and expansion of facilities are some other vital strategies adopted by most of the companies to contribute to the growth of the company and improve their market growth rate.

• In January 2019, Toshiba announced the launch of MG08 series, industry’s largest capacity 16TB hard disk drive compatible with the most comprehensive range of applications and operating systems.

• In November 2018, Microtechnology launched its new MT25Q NOR flash enabled with Authenta technology providing content and command authentication to protect device functionality at the silicon level.

• In February 2019, KLA completed the acquisition of Orbotech Ltd extending the company’s technology reach within the electronics value chain and contributing to the growth of KLA’s market share in the semiconductor industry.





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