The size of the worldwide semiconductor industry is expected to increase by USD 112.8 billion between 2024 and 2028. The market is anticipated to expand over the course of the projected period at a CAGR of 3.42%. The semiconductor market is expanding due to the growing use of IoT devices, which is also causing a trend in the adoption of sustainable manufacturing. The semiconductor industry’s supply-demand imbalance, however, presents a problem according to Technavio.
Sustainability Stirring the Semiconductor Market
The semiconductor market demands large amounts of energy and water; a single manufacturing plant uses two to four million gallons of ultra-pure water per day and around one terawatt-hour of energy per year.
Production expansion is required because to the growing demand for semiconductors brought on by cutting-edge technologies like 5G, AI, and IoT. Leaders in the industry, including TSMC and Intel, are tackling issues related to sustainability by preventing pollution, reusing water, and using a variety of water sources.
Intel wants to use only renewable energy by 2030, saving 4 billion kWh of energy and 60 billion gallons of water. Suppliers’ efforts to be sustainable improve their brand image and help to fuel the expansion of the global semiconductor industry.
Cutting-Edge Technologies, Key Driver of the Semiconductor Industry
As technology is being used more and more across sectors, the semiconductor industry is expanding significantly. The semiconductor market is being driven by the need for cutting-edge technologies including Internet of Things (IoT), machine learning, and artificial intelligence.
Due to the use of semiconductors in autonomous driving systems and electric cars, the automotive sector also makes a significant contribution. With companies like Powerexpress, Mosfet, and Discreteset manufacturing and delivering semiconductors, the market is competitive.
New technologies like 5G are being developed as a result of the trend toward miniaturization and greater performance; supply chain management is essential for businesses to keep up with the demand. In the upcoming years, it is anticipated that the semiconductor market would keep growing.
Key Challenges for the Semiconductor Industry
The strong demand for chips in industries like IoT, AI, data centers, and smart technologies presents difficulties for the semiconductor market.
Because there is a greater demand than there is supply, producers must raise prices and extend lead times. The supply-demand mismatch widens as sophisticated manufacturing nodes transition, posing production and yield concerns.
During the projected period, these variables might have an effect on the growth of the semiconductor market.
Ongoing Bottlenecks for the Semiconductor Sector
The current situation presents a number of obstacles for the semiconductor market. With semiconductor designs becoming more sophisticated, improved production methods and techniques are required. Research and development is expensive, and there is fierce competition.
The need for processors that are quicker, smaller, and more energy-efficient is what’s spurring innovation. Trade regulations and supply chain interruptions are two examples of the geopolitical and economic variables that also have an impact on the market. In order to stay competitive and satisfy the changing demands of businesses and customers, the semiconductor industry must adjust to these difficulties.
Digitalization and automation can be used to cut expenses and increase productivity. Sharing resources and risks can also be facilitated via partnerships and collaboration. In order to stay ahead of the curve in the dynamic semiconductor business, one must constantly innovate and invest.
Current Leading Companies in the Semiconductor Market
Among the leading companies in the market are 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., NVIDIA Corp., NXP Semiconductors NV, Intel Corp., MediaTek Inc., Microchip Technology Inc., Micron Technology Inc., NVIDIA Corp., NXP Semiconductors NV, ON Semiconductor Corp., Wolfspeed Inc.
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