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The semiconductor micro components market size is estimated to grow at a CAGR of 4.39% between 2022 and 2027. The semiconductor micro components market size is forecast to increase by USD 29.83 billion. The growth of the market depends on several factors, including an increase in new product development, a rise in demand for smartphones and tablets, and increasing demand from the defense and military sectors.
This semiconductor micro components market report extensively covers market segmentation by product (microprocessors, microcontrollers, and digital signal processors), end-user (consumer electronics, defense, automotive, and industrial), and geography (APAC, North America, Europe, South America, and Middle East and Africa). 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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An increase in new product development is notably driving the market growth, although increased demand for miniaturization may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
An increase in new product development is notably driving the semiconductor micro components market growth. The global microprocessors market is heavily dependent on the semiconductor industry, which relies on the sale of various electronic devices such as smartphones, tablets, and portable computers. The number of electronic devices on the market has increased significantly. This has increased the demand for semiconductor microprocessors as manufacturers continuously expand their product portfolios to keep up with the ongoing competition. This has led to rapid technological change that has increased the demand for microprocessors, thereby driving the market.
In addition, some semiconductor microcomponent manufacturers continue to invest in research and development and launch several new products. For example, in January 2021, Qualcomm announced its Boosted Snapdragon 870 5G mobile platform. The new Snapdragon 870 will deliver all-around improved performance for mature gameplay with a blazing-fast Qualcomm Snapdragon Elite gaming experience, truly global sub-6GHz 5G and mmWave, and ultra-intuitive AI. Hence, increasing new product launches will increase the demand for semiconductor microcomponents, driving the growth of the market during the forecast period.
Increased proliferation of IoT is a key trend influencing the semiconductor micro components market growth. IoT is the latest trend in the global technology space. IoT connects all major home devices to the internet. This includes cars, televisions, laptops, coffee makers, automatic door locks, GPS-enabled pet trackers, wearable devices, and mobile phones forming a network of connected devices. With the availability of high-speed wireless Internet connections such as 4G worldwide and the massive demand (and production) for Wi-Fi and GPS-enabled smartphones, the demand for fast and accurate information is also increasing.
This demand has created a need for more accurate DSPs that can compute and retrieve accurate information in a limited time frame when everything goes mobile. IoT can connect billions of devices. Processing data from these devices require more extensive use of the DSP. By 2022, it was expected that over 30-40 billion devices would be connected to the internet. To achieve this, cellular standards must evolve to meet the low-power and low-cost requirements of IoT components. Therefore, the increasing adoption of IoT will increase the demand for semiconductor microcomponents, driving the growth of the market during the forecast period.
The increased demand for miniaturization is challenging the semiconductor micro components market growth. Miniature semiconductor devices are so small that they require manual or mechanical handling. Improvements in technology and the emergence of small devices such as smartphones, tablets, and wearable technologies such as smartwatches have increased the demand for small DSPs. Miniaturization, therefore, requires vendors to constantly update their products with more advanced and compact DSPs to meet consumer demand. This forces market vendors to invest heavily in procuring expensive equipment to create intelligent and smart systems. Vendors also need to increase their budgets to create these intelligent systems. Rapid advances in technology are forcing market players to invest more in manufacturing intelligent systems, which can lead to lower profitability. Therefore, such factors will adversely affect the growth of the market during the forecast period.
Along with all this, the market requires significant capital investment, posing a major challenge to its growth. For example, microprocessors are manufactured in a critical environment and it would cost USD 5 billion to USD 6 billion to set up such a manufacturing facility. Rapid advances in technology have given rise to sophisticated electronic products that require certain types of semiconductor capital. Therefore, in order to meet the growing demand of consumers, manufacturers need more capital to expand their production capacity and invest in research and development. Market-leading vendors who are unable to make significant capital expenditures may be at a disadvantage relative to other major competitors, particularly with respect to innovative product launches, which hurts profitability and could also affect the growth of the market during the forecast period.
The 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 Semiconductor Micro Components Market Customer Landscape
Vendors 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.
ABB Ltd: The company offers different types of semiconductor micro components which are used in solar panel cell applications.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the microprocessors segment will be significant during the forecast period. A microprocessor is an electronic component integrated into a single IC. Millions of tiny components work together, including transistors, diodes, and resistors. This chip has numerous functions such as data storage, timing functions, and interaction with peripherals. This IC is used in many electronic devices such as tablets, servers, smartphones, and embedded devices. Demand for microprocessors is expected to increase during the forecast period owing to the global spread of communication devices such as smartphones and tablets and the increasing popularity of IoT.
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The microprocessors segment was valued at USD 92.08 billion in 2017 and continued to grow until 2021. Increasing demand for microprocessors in automobiles, increasing demand for game consoles, and increasing use of tablets in public places (restaurants, retail stores, airports) are some of the major reasons for the increasing revenue of the market. Additionally, recent technological advances, increased ruggedness, reduced power consumption, superior performance, improved quality, and efficient features all contribute to the increased demand for microprocessors. In recent years, the number of electronic devices on the market has increased significantly. This has increased the demand for semiconductor microprocessors as manufacturers continuously expand their product portfolios to keep up with the ongoing competition. Rising demand for advanced microprocessors from various electronic device manufacturers to offset the growing demand for tablets, smartphones, and IoT devices is one of the key factors behind this segment's dominance.
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APAC is estimated to contribute 80% to the growth of the global semiconductor micro components market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
APAC has the largest geographic segment in the semiconductor micro components market by value. The presence of several well-known semiconductor foundries such as Taiwan Semiconductor Manufacturing, United Microelectronics, Samsung and Semiconductor Manufacturing International is driving the market in this region. These manufacturers are investing heavily in the area to build new factories. For example, in December 2020, Qualcomm Technologies, LG Uplus, and LG Electronics successfully deployed their 5G mm-wave network for the first time in South Korea using commercial 5G smartphones at the Kumoh National Institute of Technology (KIT). Moreover, APAC's revenue share is expected to grow faster than other regions due to lower labor costs, huge market potential, and flexible government policies.
The spread of the COVID-19 pandemic in 2020 hindered the growth of the market. Most importantly, the Chinese market was hit hard as several semiconductor micro component manufacturing plants were shut down to curb the spread of the disease. However, market growth has revived in 2021 due to a massive vaccination campaign and the resumption of semiconductor micro components supply chain operations. The resumption of operations in end-use industries such as automotive increased demand for semiconductor micro components. The market is expected to return to pre-pandemic levels during the forecast period. In addition, the digitization of business operations by vendors, the introduction of technologically advanced products, and the emergence of Industry 4.0 will propel the growth of the market during the forecast period.
The semiconductor micro components 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.
Technavio classifies the global semiconductor micro components market as part of the global semiconductor market within the overall global semiconductors and semiconductor equipment market. The parent market, the global semiconductor market, includes manufacturers of semiconductors and related products. Technavio defines semiconductor manufacturers as companies involved in the production of integrated circuits (ICs).
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Semiconductor Micro Components Market Scope |
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Report Coverage |
Details |
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Page number |
179 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 4.39% |
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Market growth 2023-2027 |
USD 29.83 billion |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
3.74 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 80% |
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Key countries |
US, China, Taiwan, South Korea, and Japan |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
ABB Ltd., ADVACAM Oy, ADVANCED MICRO DEVICES INC., Allegro MicroSystems Inc., Analog Devices Inc., Hendon Semiconductors, Infineon Technologies AG, Micro Hybrid Components, Micron Technology Inc., Microsemi Corp., Nichia Corp., NXP Semiconductors NV, Panasonic Holdings Corp., Renesas Electronics Corp., Samsung Electronics Co. Ltd., Seoul Semiconductor Co. Ltd., STMicroelectronics NV, Texas Instruments Inc., Toshiba Corp., and Utmel Electronics |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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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 End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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