Authored By: Sarah
11 Jul 2024

 Semiconductor Market Size to grow by USD 112.8 billion between 2024-2028

According to a research report “ Semiconductor Market” by Application (Networking and communication, Data processing, Industrial, Consumer electronics, Others) Product (ICs, Optoelectronics, Discrete semiconductors, Sensors) Geography (APAC, North America, Europe, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 112.8 billion, at a CAGR of  3.42% during the forecast period. The Internet of Things (IoT) is a complex network of interconnected devices and systems, encompassing electronics, software, sensors, platforms, and networks. The proliferation of IoT devices in both residential and commercial sectors is fueling significant demand for advanced sensing technologies, particularly magnetic sensors. These sensors play a pivotal role in enabling functions such as object detection, position tracking, and navigation in a variety of smart applications, including security solutions, parking management systems, autonomous guided vehicles, autonomous mobile robots, and smart robots. Hall effect sensors, TMR sensors, and reed switch sensors are among the most commonly utilized magnetic sensors in these innovative devices.

Browse market data tables, figures, and in-depth TOC on “Semiconductor Market” by Application (Networking and communication, Data processing, Industrial, Consumer electronics, Others) Product (ICs, Optoelectronics, Discrete semiconductors, Sensors) Geography (APAC, North America, Europe, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample


By Application, the Networking and communication segment is projected to dominate the market size in 2024

In the realm of electronics, Integrated Circuits (ICs), often referred to as microchips or chips, represent the cornerstone of technological advancement. These intricate components are engineered from semiconductor materials, integrating transistors, diodes, capacitors, and resistors onto a single wafer. ICs serve as the foundation for an extensive array of applications and industries, including consumer electronics (smartphones, laptops, televisions), automotive systems, industrial automation, medical devices, telecommunications, data centers, and numerous others. Memory ICs, such as DRAM and NAND flash memory, are a crucial category, responsible for data storage.

By Product, ICs  segment is expected to hold the largest market size for the year 2024

The networking and communication segment represents a substantial portion of the global semiconductor market, incorporating various semiconductor devices and components essential for diverse communication technologies and networking infrastructures. With the increasing interconnectedness and dependence on efficient communication, the demand for semiconductor solutions in this sector persistently escalates. The proliferation of smart devices, including smartphones, tablets, laptops, and IoT gadgets, has resulted in a surge in data consumption. In response, consumers and businesses alike require faster and more dependable communication, necessitating sophisticated semiconductor solutions that facilitate high-speed data transmission. The deployment of 5G technology is anticipated to deliver substantially higher data speeds and reduced latency, unlocking a myriad of new applications and services, such as advanced mobile connectivity.

APAC is forecasted to hold the largest market size by region in 2024

The semiconductor market is experiencing significant growth, driven by increasing demand for electronics in various industries. Companies are investing heavily in research and development to produce more advanced and efficient semiconductor technologies. This trend is expected to continue, with the global semiconductor market projected to reach USD1 trillion by 2030. Key players in this sector include Intel, Samsung, and Taiwan Semiconductor Manufacturing Company.

The Semiconductor Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Analog Devices Inc.
  • Broadcom Inc.
  • Infineon Technologies AG
  • Intel Corp.
  • MediaTek Inc.
  • Microchip Technology Inc.
  • Micron Technology Inc.
  • NVIDIA Corp.
  • NXP Semiconductors NV
  • ON Semiconductor Corp.
  • Qualcomm Inc.
  • Renesas Electronics Corp.
  • Samsung Electronics Co. Ltd.
  • Skyworks Solutions Inc.
  • Sony Group Corp.
  • STMicroelectronics International N.V.
  • Taiwan Semiconductor Manufacturing Co. Ltd.
  • Texas Instruments Inc.
  • Toshiba Corp.
  • Wolfspeed Inc.

For insights on company offerings- Request a sample report!

Research Analysis Overview

The semiconductor market is a profitable and dynamic industry that revolves around the production and application of semiconducting materials, electronic components, and semiconductor devices such as diodes and transistors. These fundamental building blocks of contemporary technology have paved the way for numerous breakthroughs and progress in various sectors. Semiconductors are essential for data center chips, computer chips, communication systems, smartphones, and PC sales. The demand for memory chips, in particular, has been on the rise due to the increasing use of machine learning, artificial intelligence, Internet of Things, and other subsequent technologies. Spring 2023 is expected to see continued growth in the semiconductor industry, with Fab utilization rates reaching an all-time high, and inventories remaining low. The Semiconductor Industry Association reports that the market for integrated circuits is projected to reach USD532 billion by 2026. B2C, B2G, and B2B enterprises are major consumers of semiconductors. The IDC predicts that the global semiconductor market will grow at a CAGR of 7.2% from 2021 to 2026. The VAT rate reduction in some countries is also expected to boost the semiconductor industry. Overall, the semiconductor market is poised for continued progress and innovation.

Market Research Overview

The semiconductor market is a dynamic and innovative industry that encompasses various sectors, including PC clientele, data centers, and the energy sector. Key players like Micron, Ericsson, and Amkor dominate this market with their competitive advantages and diverse product portfolios. The semi-consolidated nature of the industry continues to drive innovation, with emerging materials such as carbon nanotubes and aluminum nitride being explored for their potential in solar cells, lasers, and optoelectronic applications. The Semiconductor Materials Segment is a crucial part of the industry, focusing on fabrication and the production of materials such as silicon, gallium arsenide, and electronic gases. The Semiconductor Devices Segment includes Discrete Semiconductors, power semiconductors, and integrated circuits, which are essential components in various applications, from power conditioners and UPSs to consumer electronic appliances and automotive applications. The post-pandemic era brings new challenges and opportunities, with changes in demand, manufacturing capacity constraints, and supply chain disruptions. Semiconductor companies are investing in capital and making strategic decisions to meet the rising need for power-efficient devices and advanced microelectronics. The industry is also embracing emerging technologies like AI semiconductors, 6G, and VR, and facing challenges such as export controls, cyberattacks, and chip industry IP. The semiconductor industry is a critical driver of progress, with breakthroughs in materials, devices, and system architectures leading to more efficient power management, compact size, dependability, and affordability. From power semiconductors like IGBT and power MOSFETs to low-power converters and semiconductor switches, the industry continues to push the boundaries of contemporary technology. The future of semiconductors is bright, with a widespread adoption of electric vehicles, autonomous driving, and IoT devices, among others, driving growth and intense competition in the forthcoming years.


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200

Read News Read Less
Interested in this report?
Get your sample now!