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The semiconductor materials market size is estimated to grow by USD 19.25 billion at a CAGR of 4.8% between 2022 and 2027. The growth of the market depends on several factors, including growing automotive electronics, rising technological advancements in semiconductor manufacturing, and growing AI and edge computing.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Growing demand for automotive electronics is notably driving the market growth. The rising demand for automotive electronics is anticipated to have a considerable positive influence on the market. They play an important role in enabling various technologies that enhance safety, connectivity, efficiency, and overall driving experience as vehicles become increasingly digital and interconnected. The transition to EVs needs innovative and advanced battery management systems, power electronics, motor control units, and charging infrastructure depending on them.
In addition to that, the development of self-driving vehicles majorly depends on advanced sensors, cameras, lidar, radar, and high-performance computing depends on them. The enable energy-efficient systems will become essential as the automotive industry focuses on reducing emissions and increasing fuel efficiency. Therefore, increasing automotive electronics will support the growth of the market during the forecast period
The emergence of data centers and cloud computing is an emerging trend shaping market growth. The global market has been positively impacted by the emergence and rapid growth of data centers and cloud computing. These data centers require specialized to process, store, and transmit vast amounts of data used in cloud computing. High-performance computing capabilities are necessary to handle complex tasks, such as AI, machine learning, simulations, and analytics, which are in high demand. Specialized semiconductors and materials are required to provide the necessary processing power for these applications.
Also, high-speed data transmission requires networking equipment that uses specialized product. To maintain performance and reliability, efficient cooling and thermal management solutions are essential for data centers that aid in heat dissipation and thermal conduction are crucial. Such factors are expected to drive the market during the forecast period.
The high initial investment is a significant challenge hindering market growth. The global market is expected to face a significant challenge due to the high initial investment required for research, development, and production. The production of these materials involves significant costs, including the expenses for manufacturing facilities and specialized equipment such as CVD and etching machines. Maintaining a cleanroom environment for the production of semiconductor materials also involves substantial capital expenditure.
Moreover, ensuring consistent quality and performance across production volumes requires investments in quality control processes, which further add to the initial costs. Therefore, the high initial investment is likely to hinder the growth of the global market during the forecast period
The market share growth by the fab materials segment will be significant during the forecast period. These materials play a crucial role in constructing the complex structures and functions found in modern electronic devices. Semiconductor fab materials are the substances used in the manufacturing processes to assemble integrated circuits (ICs) and other electronic components.
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The fab materials segment was the largest and was valued at USD 35.47 billion in 2017 and will continue to grow by 2021. Enhancing the efficiency of semiconductor manufacturing processes and expanding yield rates are critical for lowering costs and growing the overall output. The increasing global demand for electronic devices, from smartphones and laptops to IoT devices and automotive electronics, drives the demand for more semiconductor fab materials to support their production. The advancement of technologies like 5G, artificial intelligence (AI), autonomous vehicles, and renewable energy systems constructs new possibilities and requirements. Therefore, factors such as technological advancements and increased demand for electronics will fuel the growth of the fab materials segment, which will drive the market during the forecast period.
They play a crucial role in various aspects of consumer electronics due to their ability to control and amplify electrical signals. Semiconductors are the building blocks of microprocessors and central processing units (CPUs), which are responsible for powering computers, laptops, tablets, and smartphones. In addition, the increasing use of high-resolution displays, OLED (organic light-emitting diode) technology, and flexible displays in devices such as smartphones and TVs require specialized semiconductor materials to drive and control these advanced display technologies. Furthermore, there is a growing demand that can enable accurate sensor readings and data processing, due to the rise in popularity of wearable devices and health monitoring technologies. As a result, these factors will fuel the growth of the consumer electronics industry, which will drive the market in focus during the forecast period.
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North America is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. In North America, the growth of the semiconductor equipment industry is influenced by various factors that contribute to the region's competitiveness, innovation, and rising investment and funding. This region is a hub for technological innovation, with multiple research institutions, universities, and technology companies propelling advancements in semiconductor manufacturing processes and equipment. Private companies and government agencies foster the development of cutting-edge semiconductor equipment technologies through significant investments in research and development. Overall, such factors are expected to drive the growth of the regional market during the forecast period.
The Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Amkor Technology Inc. - The company offers laminate, leadframe, memory and storage, sensors, and power discrete packaging materials.
ASE Technology Holding Co. Ltd. - The company offers VIPack, an advanced packaging platform designed to enable vertically integrated package solutions. VIPack is comprised of six core packaging technology FOPoP, FOCoS, fan out SiP and silicon photonics.
BASF SE - The company offers chemical solutions for semiconductors namely Selectipur, Fotopur and Cupur.
The market research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The market encompasses a wide range of materials crucial for semiconductor device fabrication. Key materials include silicon wafers, gallium arsenide, silicon carbide, and gallium nitride. These materials serve as substrates for various processes such as epitaxy and thin film deposition using techniques like chemical vapor deposition and physical vapor deposition.
Other important processes in semiconductor manufacturing include semiconductor doping, crystal growth, and wafer fabrication. Semiconductor lithography and etching processes are used to define intricate patterns on the wafers. After fabrication, semiconductor devices undergo semiconductor packaging using various materials, including dielectric materials, to protect and connect the devices.
Quality control is crucial in semiconductor manufacturing, with semiconductor testing ensuring the functionality and reliability of the final products. The market is driven by advancements in semiconductor technology and the growing demand for electronic devices.
Semiconductor Materials Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.8% |
Market growth 2023-2027 |
USD 19.25 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.44 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 39% |
Key countries |
US, China, India, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Amkor Technology Inc., ASE Technology Holding Co. Ltd., BASF SE, ChipMOS TECHNOLOGIES INC., DuPont de Nemours Inc., Henkel AG and Co. KGaA, Heraeus Holding GmbH, Hitachi Ltd., Indium Corp., Intel Corp., JSR Corp., Kyocera Corp., LG Electronics Inc., MITSUI and CO. LTD., Nippon Steel Corp., Photronics Inc., Powertech Technology Inc., Samsung Electronics Co. Ltd., Taiwan Semiconductor Manufacturing Co. Ltd., and Texas Instruments Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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