Increasing use of electronic content in automotive and factory automation is driving the semiconductor devices market globally.
According to Frost & Sullivan’s recent analysis of the global semiconductor devices market, technology convergence of connectivity and advanced technologies such as artificial intelligence (AI) and machine learning (ML) is accelerating growth across all verticals. The increased deployment of 5G, rising adoption of 5G smartphones, increasing electronics content in automotive, migration to electric vehicles (EVs) and automated vehicles (AVs), factory automation, and the proliferation of internet of things (IoT) devices in smart homes are trends that will drive future market growth. As a result, the market will likely reach $620.07 billion by the end of 2022, up from $555.9 billion in 2021.
“Although demand is expected across all verticals, growth is especially strong in the automotive sector. This is because the sector has become increasingly dependent on electronics (especially with electric vehicles and autonomous vehicles) for core functioning and performance improvements,” said Prabhu Karunakaran, Industry Principal, Industrial at Frost & Sullivan. “As a result, semiconductors’ content and value will increase rapidly.”
Karunakaran added: Semiconductors are expected to play a key role in data center growth as complex data analytics for various markets such as finance and healthcare increasingly move to the cloud. As a result, data center growth will create demand for several clusters of semiconductor devices, including power management and optical transceivers and scale innovations in memory and flash devices to aid accelerated storage.”
Technology advancements and digital transformation initiatives across verticals present lucrative growth prospects for semiconductor devices market participants, including:
- Industry 4.0 implementation to reduce the demand-supply gap for a holistic and faster root-cause analysis.
- Boosting investments in research and development to improve the performance of solid-state drives, storage accelerators, and controllers across the design and manufacturing stages.
- Developing a wide range of products to meet current and future EV and AV demands as the technologies for these vehicles will evolve.