Latest News- Semiconductor Market: N and C is expected to lead the Application segment during 2025-2029

The Semiconductor Market is being driven by Growing adoption of IoT devices

The Semiconductor Market is expected to grow at a CAGR of 4.5% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 157.1 billion. The semiconductor industry's energy and water demands are significant, with a single fabrication plant requiring approximately 1 terawatt-hour (TWh) of energy annually and two-to-four million gallons of ultra-pure water daily. The increasing demand for semiconductors, driven by emerging technologies like 5G, Artificial Intelligence (AI), and the Internet of Things (IoT), necessitates production growth. This expansion results in a substantial increase in energy consumption and water usage. Notably, industry leaders, such as Taiwan Semiconductor Manufacturing Company, Limited (TSMC) and Intel Corporation (Intel), recognize the importance of sustainability in semiconductor manufacturing. TSMC, for instance, has implemented various water recycling applications, expanded diverse water sources, and developed pollution prevention techniques to optimize water usage efficiency. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on segments_for_ai.nslist

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Growing adoption of IoT devices
• Increasing number of data centers
• Rising demand from automotive industry

However, the market also witnesses some limitations, which are as follows:

• Supply-demand gap in global semiconductor market
• Impact of trade war on semiconductor market
• Manufacturing complexities of semiconductors

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Market Scope in Semiconductor Market Research Report

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Research Analysis Overview

The semiconductor industry, driven by contemporary technologies like artificial intelligence and the Internet of Things, is experiencing profitable growth. IDC forecasts a surge in demand for semiconductors in B2B, B2G, and B2C enterprises. Memory chips, computer chips, data center chips, and communication chips are in high demand. Spring brings new breakthroughs with machine learning and integration of semiconductor devices into VAT, PC sales, smartphones, and electronic components. Semiconducting materials like transistors and diodes continue to fuel progress, with semiconductor inventories and fab utilization remaining high. The Semiconductor Industry Association reports continued progress and innovation in this sector, with subsequent technologies poised to revolutionize various industries.

Market Research Overview

The semiconductor market, a significant segment of the global technology hardware, storage, and peripherals market, is experiencing significant growth due to the increasing demand for Artificial Intelligence (AI), Internet of Things (IoT), and Machine Learning technologies. According to Technavio, key drivers for this market expansion include the escalating volume, velocity, veracity, and variety (4Vs) of data, necessitating advanced semiconductor solutions for data processing and storage. B2B enterprises, B2G enterprises, and B2C companies are investing heavily in semiconductors for various applications, such as Virtual Reality (VR), 5G, and 6G infrastructure, Memory chips, and Integrated Circuits (ICs). IDC reports that semiconductor revenue is expected to reach USD524.3 billion in 2023, growing at a CAGR of 7.1% from 2018-2023. Major semiconductor manufacturers, including Navitas Semiconductor, Polymatech Electronics, ASE/SPIL, Amkor, and others, are adopting a top-down approach for market analysis, while also validating demand from the bottom-up. Exchange rates, GDP, and level of digitization also impact the semiconductor market size. The market's growth is further fueled by advancements in AI, IoT, and machine learning technologies, which are transforming industries and creating new opportunities.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
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