Semiconductor Market

Global Semiconductor Market:

The global semiconductor market size reached USD 694.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 1,221.2 Billion by 2033, exhibiting a growth rate (CAGR) of 6.48% during 2025-2033. The growing demand for consumer electronics, along with the deployment of 5G networks, is bolstering the market.

Semiconductor Market Analysis:

• Major Market Drivers: The rise of electric vehicles is increasing the need for semiconductors in advanced automotive systems and sensors, thereby catalyzing the market growth.
• Key Market Trends: The widespread use of radar systems, sensors, cameras, and processing units in autonomous vehicles is acting as a significant growth-inducing factor.
• Competitive Landscape: Some of the prominent market companies include Broadcom Inc., Infineon Technologies AG, Intel Corporation, Micron Technology Inc., NXP Semiconductors N.V., Renesas Electronics Corporation, Samsung Electronics Co. Ltd., SK hynix Inc., STMicroelectronics N.V., Taiwan Semiconductor Manufacturing Company Limited, Texas Instruments Incorporated, and Toshiba Electronic Devices & Storage Corporation (Toshiba Corporation), among many others.
• Geographical Trends: Asia-Pacific dominates the market due to high vehicle production, increasing urbanization levels, and the expanding automotive aftermarket opportunities in the region.
• Challenges and Opportunities: The frequent need for replacements due to wear and tear is hindering the market. However, developing more durable, longer-lasting materials and filter technologies will continue to strengthen the market growth in the foreseeable future.

Semiconductor Market Trends:

Rising Demand for Electric Vehicles

The growing popularity of electric vehicles is driving the demand for advanced semiconductors. These chips play a critical role in managing power distribution, battery performance, and overall vehicle efficiency, making them indispensable in the EV manufacturing process. For instance, in April 2024, indie Semiconductor, Inc. launched high-performance video converters to enable in-cabin connectivity applications. These new capabilities expand indie's innovative lineup of in-cabin solutions, empowering global Tier 1 system integrators to deliver best-in-class in-vehicle experiences to automakers.

Growing Investment in Research Facilities

Investments in research and development activities for semiconductors are on the rise as companies aim to innovate and create more efficient, powerful chips. This funding supports advancements in new materials, chip designs, and production technologies to meet the evolving demands of various industries. For instance, in February 2024, Samsung inaugurated a new semiconductor R&D facility in Bengaluru, India, through its division Samsung Semiconductor Research (SSIR). The modern campus promotes collaboration and agility, focusing on advancing semiconductor research and development to meet the company's growing infrastructure needs.

Increasing Focus on Local Semiconductor Manufacturing

Many regions are investing in local semiconductor manufacturing to reduce reliance on imports and ensure a stable supply chain. This focus on domestic production helps boost technological sovereignty, enhance industrial competitiveness, and create high-tech jobs within the local economy. For example, in February 2024, the Indian government approved three new semiconductor manufacturing units in partnership with Tata Group set to establish two of them. This initiative aims to bolster the semiconductor industry.

Global Semiconductor Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market forecast at the global, regional, and country levels from 2025-2033. Our report has categorized the market based on components, material used, and end user.

Breakup by Components:

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

Logic devices accounted for the largest market segment

The report has provided a detailed breakup and analysis of the market based on the components. This includes memory devices, logic devices, analog IC, MPU, discrete power devices, MCU, sensors, and others. According to the report, logic devices represented the largest market segmentation.

Logic devices dominate the market segment, which is driven by their essential role in processing and control functions. For instance, microprocessors in computers and smartphones use logic devices to execute tasks, making them critical components in modern digital systems. They provide versatility that enables them to find applications in several sectors, like aerospace for control systems, data processing, and communication.

Breakup by Material Used:

• Silicon Carbide
• Gallium Manganese Arsenide
• Copper Indium Gallium Selenide
• Molybdenum Disulfide
• Others 
   

Silicon carbide accounts for the majority of the semiconductor market share

The report has provided a detailed breakup and analysis of the market based on the material used. This includes silicon carbide, gallium manganese arsenide, copper indium gallium selenide, molybdenum disulfide, and others. According to the report, silicon carbide represented the largest market segmentation.

Silicon carbide leads the market segment due to its superior efficiency in high-temperature and high-voltage applications. For instance, it is widely used in electric vehicle inverters, enhancing power management and boosting overall performance compared to traditional silicon semiconductors. Moreover, it exhibits excellent thermal conductivity, which is fueling the growth of this segment.

Breakup by End User:

• Automotive
• Industrial
• Data Centre
• Telecommunication
• Consumer Electronics
• Aerospace and Defense
• Healthcare
• Others
   

Consumer electronics dominate the market

The report has provided a detailed breakup and analysis of the market based on the end user. This includes automotive, industrial, data centre, telecommunication, consumer electronics, aerospace and defense, healthcare, and others. According to the report, consumer electronics represented the largest market segmentation.

Consumer electronics lead the market due to the high demand for chips in products, such as smartphones, laptops, and tablets. These devices require advanced semiconductors for performance, power management, and connectivity, significantly impacting substantial growth in the sector. Besides this, the rising demand for more compact devices is acting as a significant growth-inducing factor.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Asia Pacific exhibits a clear dominance, accounting for the largest semiconductor market outlook

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Asia Pacific represented the largest segment.

Asia-Pacific dominates the semiconductor market due to its strong infrastructure, skilled workforce, and substantial investments in advanced manufacturing technologies. Countries, such as China, South Korea, and Taiwan lead the region’s semiconductor production, driven by the growing demand for consumer electronics. For example, Taiwan’s TSMC (Taiwan Semiconductor Manufacturing Company) plays an important role as a global leader in semiconductor fabrication. In line with this, governments in the region, such as India and Japan, are ramping up efforts to bolster domestic semiconductor production, thereby strengthening Asia-Pacific’s leadership in the industry.

Competitive Landscape:

The research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major market companies have also been provided. Some of the key players in the market include: 

• Broadcom Inc.
• Infineon Technologies AG
• Intel Corporation
• Micron Technology Inc.
• NXP Semiconductors N.V.
• Renesas Electronics Corporation
• Samsung Electronics Co. Ltd.
• SK hynix Inc.
• STMicroelectronics N.V.
• Taiwan Semiconductor Manufacturing Company Limited
• Texas Instruments Incorporated
• Toshiba Electronic Devices & Storage Corporation (Toshiba Corporation)
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Semiconductor Market Recent Developments:

• April 2024: indie Semiconductor, Inc. launched high-performance video converters to enable in-cabin connectivity applications. These new capabilities expand indie's innovative lineup of in-cabin solutions, empowering global Tier 1 system integrators to deliver best-in-class in-vehicle experiences to automakers.
• February 2024: Samsung inaugurated a new semiconductor R&D facility in Bengaluru, India, through its division Samsung Semiconductor Research (SSIR). The modern campus promotes collaboration and agility, focusing on advancing semiconductor research and development to meet the company's growing infrastructure needs.
• February 2024: The Indian government approved three new semiconductor manufacturing units in partnership with Tata Group set to establish two of them. This initiative aims to bolster the semiconductor industry.

Semiconductor Market Report Scope:

Key Questions Answered in This Report: 

• How has the global semiconductor market performed so far, and how will it perform in the coming years? 
• What are the drivers, restraints, and opportunities in the global semiconductor market? 
• What is the impact of each driver, restraint, and opportunity on the global semiconductor market growth? 
• What are the key regional markets? 
• Which countries represent the most attractive semiconductor market? 
• What is the breakup of the market based on the components? 
• Which are the most attractive components in the semiconductor market? 
• What is the breakup of the market based on the material used? 
• Which is the most attractive material used in the semiconductor market? 
• What is the breakup of the market based on the end user? 
• Which is the most attractive end user in the semiconductor market?
• What is the competitive structure of the global semiconductor market? 
• Who are the key players/companies in the global semiconductor market? 

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the semiconductor market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global semiconductor market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the semiconductor industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.