Semiconductor Micro Components Market size is set to grow by USD 30.8 billion from 2024-2028, Increase in new product development to boost the market growth, Technavio

NEW YORK, Aug. 7, 2024 /PRNewswire/ — The global semiconductor micro components market size is estimated to grow by USD 30.8 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 4.38% during the forecast period. Increase in new product development is driving market growth, with a trend towards increased proliferation of iot. However, increased demand for miniaturization poses a challenge. Key market players include ABB Ltd., ADVACAM Oy, Advanced Micro Devices Inc., Allegro MicroSystems Inc., Analog Devices Inc., Hendon Semiconductors, Infineon Technologies AG, Micro Hybrid Components, Microchip Technology Inc., Micron Technology Inc., Nichia Corp., NXP Semiconductors NV, Panasonic Holdings Corp., Renesas Electronics Corp., Samsung Electronics Co. Ltd., Seoul Semiconductor Co. Ltd., STMicroelectronics International N.V., Texas Instruments Inc., Toshiba Corp., and Utmel Electronics.

Get a detailed analysis on regions, market segments, customer landscape, and companies – Click for the snapshot of this report

Key Market Trends Fueling Growth

The Internet of Things (IoT) is revolutionizing the technology industry by connecting billions of devices to the Internet, from cars and TVs to coffeemakers and wearable devices. With the widespread availability of high-speed wireless Internet connections like 4G, the demand for quick and precise information has surged. This demand necessitates more advanced Digital Signal Processors (DSPs) capable of calculating and retrieving precise data in real-time. By the end of 2022, it’s estimated that over 30 to 40 billion devices will be connected to the Internet. To accommodate this massive growth, cellular standards must evolve to meet the power and cost requirements of IoT components. The latest LTE standard introduces a new user-equipment category (Cat-0) for Machine-to-Machine (M2M) communications and the IoT. Developing signal-processing algorithms for the evolving LTE landscape requires a fast prototyping platform. A 4G cellular modem comprises an RF front-end, hardwired digital baseband (DBB) processing, and L2/L3 processing on a control processing unit (CPU). Utilizing an FPGA as a base for the modem allows for immediate updates to DBB and CPU architecture, enabling software running on the CPU to take advantage of these improvements. The increasing prevalence of IoT is expected to fuel the demand for semiconductor micro components, driving market growth during the forecast period. 

The semiconductor microcomponents market is experiencing significant growth, driven by trends in Automotive Electronics, Artificial Intelligence (AI), and Energy Efficiency. Semiconductor manufacturers face pricing pressures due to increasing competition and profit margin concerns. Security vulnerabilities are a major obstacle, with semiconductor security becoming a top priority. In the consumer electronics sector, devices like smart phones, laptops, automated door locks, coffee makers, GPS-enabled pet trackers, and mobile phones are driving demand for miniaturized, technologically advanced semiconductor components. Power consumption is a key consideration, with VLSI technology and technologically advanced DSPs being adopted to reduce power usage. The IoT components market is also growing rapidly, with cellular standards and in-car connectivity driving demand for semiconductor devices. The defense industry is another significant market, with a focus on intricate semiconductor devices for advanced processing power, sensor integration, and communication capabilities. Semiconductor components play a crucial role in various electronics, from televisions and air conditioners to tablets, wearable devices, and electric vehicles (EVs). The average offering price for semiconductor microcomponents continues to be a challenge for manufacturers, as they strive to balance cost and performance. 

Discover 360° analysis of this market. For complete information, schedule your consultation- Book Here!

Market Challenges

The semiconductor micro components market is witnessing significant growth due to the increasing demand for miniature semiconductor devices in consumer electronics. The emergence of compact devices, such as smartphones, tablets, and wearable technologies, has led to an increase in demand for small-sized Digital Signal Processors (DSPs). Vendors in the market are compelled to invest heavily in manufacturing advanced and compact DSPs to cater to consumer needs. This investment includes the procurement of expensive equipment and an increase in production budgets. However, the rapid technological advances in the industry may negatively impact the profitability of vendors, posing a challenge to the growth of the global semiconductor micro components market during the forecast period.The semiconductor microcomponents market is experiencing significant growth due to the increasing demand for intricate semiconductor devices in various industries. Electronics sectors like automotive and consumer electronics, including tablets and wearable devices, require advanced semiconductor components for miniaturization, processing power, sensor integration, communication capabilities, and real-time data processing. Automotive applications include advanced driver-assistance systems (ADAS), electric vehicles (EVs), and in-car connectivity. The semiconductor industry is crucial for these applications, providing components for sensors, control systems, communication devices, and real-time data processing. The telecommunications industry is another major market for semiconductor microcomponents, with a focus on 5G technology and networks. The need for high data speeds, low latency, and network capacity drives the demand for communication modules, RF components, and microelectronic devices like transistors, diodes, and gallium nitride (GaN) power amplifiers. Smart manufacturing and precision medical devices, such as diagnostic equipment, also rely on semiconductor microcomponents for efficiency, connectivity, and digital transformation. Silicon, germanium, GaAs, and other materials are used to create microelectronic devices, including microprocessors, microcontrollers, and various semiconductor components like transistors and diodes. In summary, the semiconductor microcomponents market is essential for various industries, driving innovation and growth in sectors like automotive, consumer electronics, telecommunications, and medical devices. The demand for miniaturization, processing power, sensor integration, communication capabilities, and real-time data processing continues to fuel market growth.

For more insights on driver and challenges – Download a Sample Report

Segment Overview 

This semiconductor micro components market report extensively covers market segmentation by

Product 1.1 Microprocessors1.2 Microcontrollers1.3 Digital signal processorsEnd-user 2.1 Consumer electronics2.2 Defense2.3 Automotive2.4 IndustrialGeography 3.1 APAC3.2 North America3.3 Europe3.4 South America3.5 Middle East and Africa

1.1 Microprocessors- The semiconductor micro components market is driven by the demand for microprocessors, an electronic component integrated on a single IC. Microprocessors contain millions of small components, such as transistors, diodes, and resistors. They serve various functions, including data storage, timing, and interaction with peripheral devices. The market is fueled by the increasing adoption of communication devices like smartphones and tablets worldwide and the growing popularity of IoT. However, declining PC sales may impact the market. Advances in technology, improved durability, reduced energy consumption, superior performance, enhanced quality, and efficient features contribute to the demand for microprocessors. Major industries like automotive and consumer electronics are significant contributors to the microprocessors segment’s growth. The increasing demand for advanced microprocessors from electronic device manufacturers and automotive component manufacturers, such as Bosch and JBM Group, creates opportunities for semiconductor micro component manufacturers during the forecast period. Additionally, the growing demand for microprocessors in automobiles, gaming consoles, and public places like restaurants, retail outlets, and airports, is increasing the revenue of the market. The microprocessors’ adoption in these industries will augment the growth of the microprocessors segment of the global semiconductor micro components market during the forecast period.

For more information on market segmentation with geographical analysis including forecast (2024-2028) and historic data (2018 – 2022) – Download a Sample Report

Learn and explore more about Technavio’s in-depth research reports

The Global Semiconductor Assembly And Testing Services (SATS) Market is experiencing robust growth due to the increasing demand for advanced semiconductor devices. Similarly, the Global Semiconductor IP Market is expanding rapidly, driven by the need for cost-effective and efficient semiconductor designs. Meanwhile, the Global Field-Programmable Gate Array (FPGA) Market is witnessing significant growth, thanks to its adaptability and widespread application in various sectors like telecommunications, automotive, and consumer electronics. These markets are pivotal in shaping the future of the semiconductor industry.

Research Analysis

The semiconductor microcomponents market encompasses intricate semiconductor devices that play a vital role in various sectors, including electronics, telecommunications, consumer electronics, and automotive industries. These miniaturized components are essential for powering devices such as Smart phones, Laptops, Automated door locks, Coffee makers, GPS-enabled pet trackers, and Mobile phones. Semiconductor components are also indispensable for Automotive Electronics, Artificial Intelligence (AI), and Energy Efficiency. The market faces challenges like pricing pressures and profit margins, which can impact Semiconductor Manufacturers. Energy Efficiency is a significant trend in the market, driving demand for energy-efficient semiconductor components. However, semiconductor security vulnerabilities pose obstacles, necessitating continuous innovation and improvement. Analog Devices are a crucial type of semiconductor component, offering precision and reliability.

Market Research Overview

The semiconductor microcomponents market encompasses intricate semiconductor devices that play a crucial role in various sectors, including electronics, automotive, consumer electronics, and more. These components, which include sensors, control systems, communication devices, and microelectronic devices such as transistors and diodes, are essential for miniaturized and advanced driver-assistance systems in electric vehicles (EVs) and automotive electronics. In consumer electronics, semiconductor components power tablets, wearable devices, and smartphones, enabling real-time data processing, digital transformation, and advanced features like AI and energy efficiency. The telecommunications industry, with its focus on 5G technology and networks, demands high-performance semiconductor components for data speeds, low latency, and network capacity. Semiconductor materials like Silicon, germanium, GaAs, gallium nitride (GaN), and microprocessors and microcontrollers are used to create these components. However, pricing pressures and profit margins pose challenges for semiconductor manufacturers, while security vulnerabilities and obstacles in production and integration remain concerns. Semiconductor devices are also integral to various industries like defense, medical devices, and appliances, including smartphones, laptops, automated door locks, coffee makers, GPS-enabled pet trackers, and more. Power consumption and VLSI technology are significant factors in the development of technologically advanced DSPs for applications like television, air conditioners, and IoT components. Cellular standards continue to evolve, driving the need for advanced semiconductor components.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

ProductMicroprocessorsMicrocontrollersDigital Signal ProcessorsEnd-userConsumer ElectronicsDefenseAutomotiveIndustrialGeographyAPACNorth AmericaEuropeSouth AmericaMiddle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

View original content to download multimedia:https://www.prnewswire.com/news-releases/semiconductor-micro-components-market-size-is-set-to-grow-by-usd-30-8-billion-from-2024-2028–increase-in-new-product-development-to-boost-the-market-growth-technavio-302215571.html

SOURCE Technavio