Market Trends of Semiconductor Equipment Industry
This section covers the major market trends shaping the Semiconductor Equipment Market according to our research experts:
Increasing Demand for Consumer Electronic Devices
- Consumer electronics is the fastest-growing segment and contributes significantly to market expansion. The growth of smartphones, which is predicted to increase with population growth, is the key driving force for this market. Consumer electronics drive the industry due to the increased demand for products such as tablets, smartphones, laptop computers, and wearable gadgets. As semiconductor technology advances, new market areas, such as machine learning, are rapidly being integrated.
- Due to ongoing improvements in items, including cars, medical equipment, smart devices, smart homes, and wearables, semiconductor integration has become a widespread phenomenon. Additionally, the trend of combining semiconductors into a single chip is expanding due to the consumers' desire for small-sized devices. The machinery used to manufacture semiconductors is gaining momentum since it makes it possible to assemble semiconductors on a single chip.
- There were approximately 8.2 billion mobile subscriptions by the end of 2021. This is anticipated to reach nearly 9.1 billion by the end of 2027. The percentage of mobile broadband subscriptions may rise from 84% to 93% at the same time. By the end of the forecast period, there are expected to be 6.7 billion unique mobile customers, up from 6.1 billion at the end of 2021.
- Smartphone-related subscriptions are still increasing. There were 6.3 billion at the end of 2021, making up nearly 77% of all mobile phone subscriptions. By 2027, this is anticipated to increase to 7.8 billion, or 87% of all mobile subscribers.
- The semiconductor equipment market is driven by the demand for quicker and more effective memory solutions. These semiconductors are becoming more complicated and can handle intensive memory operations. Overall, the market is seeing significant investments due to the increased reliance on IP solution providers.
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Asia-Pacific Expected to Hold Significant Market Share
- The semiconductor equipment is highly concentrated in a few countries, and sales of this equipment are very limited or non-existent outside some major countries. China has grown significantly as an essential producer of mature semiconductor technologies. On the other hand, the Chinese government continues to prioritize the semiconductor industry as a driver of economic growth and technological leadership. It is expected to add roughly 40% of the new global capacity by 2030.
- Further, in April 2022, Teradyne Inc., a leading supplier of automated test equipment, announced the shipment of the 7,000th unit of its J750 semiconductor test platform to Nations Technologies, a leading microcontroller unit (MCU) and security integrated circuit (IC) chip maker in China.
- The growing adoption of smart electronic devices that improve manufacturing opportunities and the significant integration of electronics into various applications are the key factors driving the growth of semiconductor equipment in Japan. Moreover, the incorporation of IoT, artificial intelligence, and connected devices into various end-user industries are expected to drive the semiconductor equipment market in the Country.
- Due to the robust demand for chips used in vehicles and high-performance computing devices, Taiwan is expected to become the world's largest spender on front-end chip manufacturing equipment this year, according to the international trade group SEMI. Taiwanese fab equipment spending is expected to rise by 52% yearly to USD 34 billion.
- South Korea and other major hubs for foundries are increasingly investing and incentivizing to expand the industry presence of their respective countries. In addition, the Ministry of Trade, Industry, and Energy announced that chip exports are expected to double to USD 200 billion by 2030. Furthermore, the government seeks to build a "K-Semiconductor belt" that stretches dozens of kilometers south of Seoul and brings together chip designers, manufacturers, and suppliers. These plants aim to sharpen South Korea's competitive edge in the global semiconductor industry and localize major semiconductor materials and equipment supplies with key semiconductor companies and their suppliers working in clusters amid a global chip shortage.
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