Semiconductor Device Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

Semiconductor Device Market Analysis

The Global Semiconductor Device Market size is estimated at USD 621.01 billion in 2024, and is expected to reach USD 928.93 billion by 2029, growing at a CAGR of 8.39% during the forecast period (2024-2029). In terms of shipment volume, the market is expected to grow from 0.82 trillion units in 2024 to 1.15 trillion units by 2029, at a CAGR of 7.02% during the forecast period (2024-2029).

Semiconductor devices are typically manufactured through a complex process called semiconductor fabrication or integrated circuit (IC) manufacturing. This process involves precise manipulation of the semiconductor material to create components with specific electrical behavior.

• Semiconductor devices are the backbone of modern electronics, powering everything from smartphones & computers to medical devices and renewable energy systems. One of the primary advantages of semiconductor devices is their small size and compactness.

• Unlike older vacuum tube technology, which requires large and bulky components, semiconductor devices can be manufactured in extremely small sizes. This miniaturization has allowed for the development of portable and wearable electronics that are lightweight and easy to carry, such as smartphones, fitness trackers, and smartwatches.

• The semiconductor devices market has witnessed a significant transformation in recent years due to the increasing adoption of advanced technologies like AI and IoT. These advanced technologies have paved the way for revolutionary changes in various industries, ranging from healthcare to automotive, and have opened up new avenues for the semiconductor devices market.

• The explosive growth of data consumption is one of the primary market drivers of 5G. With the proliferation of connected devices, smartphones, and IoT applications, people generate an enormous amount of data daily. 5G's higher bandwidth and capacity will support this surge in data consumption, enabling seamless connectivity for users.

• Moreover, the semiconductor supply chain is a complex network of interconnected stages involving design, manufacturing, testing, and distribution. The process begins with chip design, followed by wafer fabrication, assembly, and testing. Finally, the chips are distributed to original equipment manufacturers (OEMs) who use them in various electronic devices. The surge in demand for electronic devices, driven by trends like remote working, e-commerce, and 5G adoption, has outpaced the supply capacity of semiconductor manufacturers. This increased demand has strained the entire supply chain, leading to shortages.

• One of the significant aftereffects of the outbreak of COVID-19 is the increased usage of data. Moreover, it presented new opportunities for growing data generation due to increased remote working environments; various data center vendors consistently invest in new data centers in line with the insatiable need for data. According to the National Association of Software and Service Companies (NASSCOM), India's data center market investment is anticipated to reach approximately USD 4.6 billion in 2025.

Semiconductor Device Market Trends

Communication Industry to be the Largest End User

Semiconductor Device Industry Segmentation

Semiconductor devices are electronic components made from semiconductor materials that exhibit unique electrical properties. Semiconductor materials, such as silicon and germanium, have the unique characteristic of conducting electricity under certain conditions. Unlike conductors (like metals) that easily allow the flow of electrons and insulators (like rubber) that resist the flow of electrons, semiconductors have conductivity that can be controlled.

The market is defined by the revenue generated from sales of semiconductor devices like discrete semiconductors, optoelectronics, sensors, and integrated circuits comprising analog, logic, memory, and micro-integrated circuits employed in various end-user verticals like automotive, communication (wired, wireless), consumer, industrial, computing/data storage, government (aerospace & defense), etc., across various countries like United States, Europe, Japan, China, Korea, Taiwan, and Rest of the World.

The semiconductor device market is segmented by device type (discrete semiconductors, optoelectronics, sensors, integrated circuits (analog, logic, memory, micro [microprocessors (MPU), microcontrollers (MCU), digital signal processors]), by end-user application (automotive, communication (wired and wireless), consumer, industrial, computing/data storage, government (aerospace and defense)), and geography (United States, Europe, Japan, China, Korea, Taiwan, Rest of the World). The report offers market forecasts and size in volume (units) and value (USD) for all the above segments.