North America micro component semiconductor market is projected to grow at a CAGR of 1.57% during the forecast period.
Factors such as the increasing adoption of consumer electronic devices, the emergence of AI, IoT, and ML, and growing demand for faster and advanced memory chips in various industrial applications, increasing usage of LED and OLEDs are anticipated to drive the market growth during the forecast period. Furthermore, the growing demand for micro-component semiconductors from the automotive industry of the region will boost the overall market growth during the forecast period. The market is segmented into- By Type, By Industry Vertical, and By Country.
North America Micro Component Semiconductor Market Drivers:
Many leading consumer electronic brands are making considerable investments in technology to introduce new devices to cater to the increased demand for advanced devices, which is driving the overall market growth. The rapid adoption of advanced technologies such as ADAS, connected cars, and electrification in the automotive sector of the region will significantly contribute to the overall market growth during the forecast period. Semiconductors have made it possible to replace traditional manual systems with electrical systems, which helps in increasing vehicle efficiency, reducing carbon emissions, etc. With the help of semiconductor components, connectivity between cars can also be enhanced. They allow cars to stay connected in real-time. Moreover, the growing demand for electric vehicles across the United States will further drive the overall market growth. Climate change, rapid urbanization, advances in renewables, energy security, and data capture & analysis are some of the major factors that are creating an opening for electric mobility to enter the mass market. The United States ranked the third position in the global electric car market. The world’s leading electric car market is Europe, with more than 1.4 million electric vehicle registrations, China followed with 1.2 million registrations (5.7% sales share), and the United States remained third at 295 000 (2% sales share) (Source: IEA).
One of the prime reasons supporting market growth is the growing demand for LED lighting. With the rising LED lighting penetration rate, many American manufacturers have started working on the development of the LED lighting business, which is anticipated to drive the demand for micro component semiconductors across the consumer electronics industry of the region, which in turn will boost the overall market growth during the forecast period. Key players in the market introduce new products to rank higher in the competitive market. For instance, Samsung introduced LM101B CSP LEDs that use a film phosphor in the conversion layer to reduce surface roughness and enable uniform thickness control with small colour dispersion.
COVID-19 Insights
The COVID-19 pandemic has slowed down the growth of the market. During the pandemic, there was a shortage of chips and semiconductors, because of which many countries across the region faced significant demand and supply imbalances. All the manufacturing facilities were completely shut down, and all the plans related to the manufacturing of new components were delayed, which impacted the overall market growth. However, the market is surging with rapid innovation and investments in the consumer electronics and automotive industry across the region.
Segmentation
The market has been analyzed through the following segments: