Semiconductor Industry Market Size (2024 - 2029)

Semiconductor Market Analysis

The Semiconductor Industry is expected to grow from USD 580.35 billion in 2024 to USD 882.09 billion by 2029, at a CAGR of 8.73% during the forecast period (2024-2029). In terms of shipment volume, the market is expected to grow from 1.27 trillion units in 2024 to 2.07 trillion units by 2029, at a CAGR of 10.32% during the forecast period (2024-2029).

• The semiconductor sector is experiencing a swift expansion as semiconductors are becoming the fundamental components of contemporary technology. Progress and breakthroughs in this industry directly influence all subsequent technologies.
• Semiconductor devices are electronic components that use semiconducting material as their foundation. This material produces transistors, diodes, and other fundamental functional units in integrated circuits (ICs). These devices are represented by their ability to neither conduct electricity well nor act as effective insulators. The benefits of semiconductor devices encompass their affordability, dependability, and compact size. Over the past few decades, the utilization of these devices in the production of diverse electronics has surged in popularity, and it is projected to continue gaining momentum in the forthcoming years.
• The expansion 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 increased demand for products such as tablets, laptops, smartphones, computers, and wearable gadgets. As semiconductor technology advances, new market areas, such as machine learning, are rapidly being integrated.
• The semiconductor equipment market is driven by the need for faster and more effective memory solutions. These semiconductors are becoming more sophisticated and can handle intensive memory operations. Overall, the market is seeing significant investments due to the increased reliance on IP solution providers.
• The semiconductor industry is projected to experience strong growth in the foreseeable future as it caters to the growing need for semiconductor materials in emerging technologies like artificial intelligence (AI), autonomous driving, the Internet of Things, and 5G. This growth is fueled by intense competition among key players and consistent investment in research and development (R&D). As a result, vendors are constantly driven to innovate and achieve a competitive advantage in the market.
• For example, Micron is a prominent company that plays a significant role in market analysis. By leveraging its industry-leading NAND technology, the company demonstrated its superiority by introducing the 232-layer node ahead of its competitors. In 2023, Micron expanded its manufacturing capacity for this advanced technology. Additionally, the company allocated substantial resources to develop innovative memory structures to transition smoothly to the next generation of semiconductor products.
• Furthermore, the ongoing Russia-Ukraine war has had a negative impact on the supply of specific raw materials utilized in semiconductor manufacturing, such as neon and palladium, which are critical inputs to particular stages of the manufacturing process. Consequently, the prices of these inputs have shot up, adding to the costs associated with the semiconductor manufacturing process. Direct supply chains with Russia and Ukraine, as well as supply chains that go through Russia, have all collapsed due to the start of the battle between Russia and Ukraine and the ensuing sanctions. As a result, the cost of various raw materials, energy, intermediate goods, and transportation services has dramatically increased. The ongoing war has created political and economic instability and declining consumer purchasing power.

Semiconductor Industry Segmentation

Semiconductors are essential technology enablers that power many advanced digital devices. The global semiconductor industry is set to continue its robust growth well into the next decade due to advancements in emerging technologies, such as autonomous driving, artificial intelligence (AI), 5G, and the Internet of Things (IoT), coupled with consistent spending on R&D and competition among prominent players.

The semiconductor industry is segmented by semiconductor devices (discrete semiconductors, optoelectronics, sensors, and integrated circuits), semiconductor equipment (front-end equipment and back-end equipment), semiconductors materials (fabrication and packaging), semiconductor foundry market, outsourced semiconductor assembly test services (OSAT) market, and geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.