Market Size of China Discrete Semiconductors Industry
Study Period | 2019 - 2029 |
Base Year For Estimation | 2023 |
Market Size (2024) | USD 12.09 Billion |
Market Size (2029) | USD 17.45 Billion |
CAGR (2024 - 2029) | 7.61 % |
Market Concentration | Low |
Major Players*Disclaimer: Major Players sorted in no particular order |
China Discrete Semiconductors Market Analysis
The China Discrete Semiconductors Market size is estimated at USD 12.09 billion in 2024, and is expected to reach USD 17.45 billion by 2029, growing at a CAGR of 7.61% during the forecast period (2024-2029).
- The Chinese discrete semiconductor market is witnessing substantial growth, propelled by the country's expanding industrial landscape and a strategic pivot toward automation to boost ROI (return on investment). China boasts the largest manufacturing industry globally, contributing significantly to market demand. Manufacturing companies in China prioritize adopting 4.0 solutions to optimize operations, propelling market expansion.
- China has emerged as a prominent player in the global implementation of 5G technology. The MIIT projected that China would reach 592.01 million 5G users by February 2023, with expectations of surpassing 1 billion users by 2025. Significant efforts are underway to enhance the necessary infrastructure to support this advancement. For instance, as of October 2023, China had approximately 3.22 million 5G base stations, representing 28.1% of all cellular base stations. With 5G rapidly establishing itself as a crucial component of the communication sector, facilitating data transfer among various elements of the manufacturing ecosystem, these developments are poised to drive growth in the market within the country.
- Rising expenditures on developing data centers in the country may increase the demand for more electrical components, which is likely to boost the demand for discrete semiconductors in China during the forecast period. For instance, CloudScene highlighted China's significance in the Asia-Pacific data center landscape in September 2023. China boasted 448 data centers, the highest in the region. Globally, China secured the fourth spot in total data center count that month.
- Silicon carbide, gallium nitride, and other materials are used to manufacture discrete semiconductors. However, these raw materials are linked to high expenses, a significant market expansion obstacle. As a result, the elevated costs of raw materials necessary for producing discrete semiconductors are impeding the market's growth.
- Macroeconomic factors like China's economic growth directly affect industrial output and semiconductor demand. A slowdown may reduce investment and consumer spending, impacting semiconductor demand. International trade policies, tariffs, and sanctions impact the import and export of semiconductors and raw materials, affecting supply chain and market dynamics.
China Discrete Semiconductors Industry Segmentation
Discrete semiconductors are individual devices housed in their package, distinct from other components. In contrast to integrated circuits (ICs), which may house thousands, even billions, of transistors in a single package, discrete semiconductors are limited to performing a single, specific function.
The study tracks the revenue accrued through the sale of discrete semiconductor products in various end user industries by various players in China. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates during the forecast period. The study further analyzes the overall impact of COVID-19 aftereffects and other macroeconomic factors on the market. The report's scope encompasses market sizing and forecasts for the various market segments.
The Chinese discrete semiconductors market is segmented by type (diode, small signal transistor, power transistor [MOSFET power transistor, IGBT power transistor, and other power transistors], rectifier, and thyristor), and end-user vertical (automotive, consumer electronics, communication, industrial, and other end-user verticals). The report offers the market size in value terms in USD for all the abovementioned segments.
By Type | |||||
Diode | |||||
Small Signal Transistor | |||||
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Rectifier | |||||
Thyristor |
By End-user Vertical | |
Automotive | |
Consumer Electronics | |
Communication | |
Industrial | |
Other End-user Verticals |
China Discrete Semiconductors Market Size Summary
The Chinese discrete semiconductors market is experiencing significant growth, driven by the country's robust industrial expansion and a strategic shift towards automation to enhance return on investment. As the largest manufacturing hub globally, China's demand for discrete semiconductors is bolstered by the adoption of Industry 4.0 solutions. The rapid deployment of 5G technology further propels market growth, with extensive infrastructure development supporting its integration into the manufacturing ecosystem. Additionally, the surge in data center investments is expected to increase the demand for electrical components, thereby boosting the discrete semiconductors market. However, high raw material costs, such as those for silicon carbide and gallium nitride, pose challenges to market expansion. Macroeconomic factors, including economic growth and international trade policies, also influence market dynamics.
China's consumer electronics sector is a key driver of the discrete semiconductors market, supported by rising disposable incomes, e-commerce expansion, and government initiatives. The country's leadership in the global 5G market and its strategic roadmap for digital innovation further enhance market prospects. The automotive industry, with its reliance on silicon MOSFETs for various applications, including electric vehicles, also contributes to market growth. The fragmented market features major players like STMicroelectronics, On Semiconductor, and Infineon Technologies, who are actively engaging in strategic partnerships and innovations to strengthen their market position. Collaborations, such as those between STMicroelectronics and Li Auto, and Infineon Technologies and Sinexcel Electric, highlight the ongoing efforts to enhance product offerings and meet the evolving demands of the Chinese market.
China Discrete Semiconductors Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Bargaining Power of Suppliers
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1.2.2 Bargaining Power of Consumers
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1.2.3 Threat of New Entrants
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1.2.4 Threat of Substitute Products
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1.2.5 Intensity of Competitive Rivalry
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1.3 Industry Value Chain Analysis
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1.4 Impact of COVID-19 Aftereffects and Other Macroeconomic Factors on the Market
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2. MARKET SEGMENTATION
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2.1 By Type
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2.1.1 Diode
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2.1.2 Small Signal Transistor
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2.1.3 Power Transistor
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2.1.3.1 MOSFET Power Transistor
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2.1.3.2 IGBT Power Transistor
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2.1.3.3 Other Power Transistors
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2.1.4 Rectifier
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2.1.5 Thyristor
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2.2 By End-user Vertical
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2.2.1 Automotive
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2.2.2 Consumer Electronics
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2.2.3 Communication
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2.2.4 Industrial
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2.2.5 Other End-user Verticals
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China Discrete Semiconductors Market Size FAQs
How big is the China Discrete Semiconductors Market?
The China Discrete Semiconductors Market size is expected to reach USD 12.09 billion in 2024 and grow at a CAGR of 7.61% to reach USD 17.45 billion by 2029.
What is the current China Discrete Semiconductors Market size?
In 2024, the China Discrete Semiconductors Market size is expected to reach USD 12.09 billion.