Semiconductor Materials Market Size, Share, Opportunities, And Trends By Type (Fabrication, Packaging), By Material (Silicon, Germanium, Selenium, Others), By End-Users (Automotives, Consumer Electronics, Medical, Communications, Others), And By Geography - Forecasts From 2023 To 2028

The semiconductor materials market is projected to grow at a CAGR of 3.29% over the forecast period, increasing from US$55.941 billion in 2021 to US$70.180 billion by 2028.

The automotive industry significantly impacts the semiconductor materials market as manufacturers incorporate more electronic components into vehicles. This surge in demand results from the need for semiconductor materials like microcontrollers, sensors, and power devices. Global vehicle production and sales data indicate substantial growth, emphasizing the industry's influence on the semiconductor materials market.

The Asia Pacific region displays significant growth potential in the semiconductor materials market due to the robust electronics and automotive sectors. For instance, as per the January 2023 data released by IBEF, India's local electronics market is anticipated to reach approximately US$150 billion to US$180 billion in the next 4 to 5 years. The growth of the electronics industry in developing economies is anticipated to raise the market potential for semiconductor materials as well. Additionally, the medical industry utilizes semiconductor materials, particularly in medical lasers, for various applications, which will drive demand. Furthermore, the production of smartphones in the region is expected to boost semiconductor materials demand. These factors position the Asia Pacific region as a key driver of growth in the semiconductor materials market.

Growth of the automotive industry to be a driving factor

The automotive industry plays a pivotal role in driving the semiconductor materials market. In 2022, 85.4 million motor vehicles were produced around the world, an increase of 5.7% compared to 2021. It is for reasons such as increasing electronic integration of electric and hybrid vehicles, autonomous vehicles, growth of EV charging infrastructure, safety and efficiency, and consumer demands. The development of autonomous vehicles requires advanced sensor arrays, communication systems, and processing units, all reliant on semiconductor materials. These technologies are pivotal for achieving self-driving capabilities, a key focus in the automotive industry, necessitating the precision and reliability provided by semiconductor materials.

Automotive manufacturers continuously aim to enhance vehicle safety and energy efficiency. Semiconductor materials are crucial for features like advanced driver assistance systems (ADAS), collision avoidance, lane-keeping, and fuel-efficient engine control systems. Consumers now anticipate advanced infotainment, connectivity, and comfort features in their vehicles, all reliant on semiconductor materials.

It is projected that the semiconductor materials market in the USA will grow steadily. 

The increasing demand for cutting-edge technologies, such as 5G, artificial intelligence, and the Internet of Things (IoT), has created a strong need for advanced semiconductor materials. These materials are essential for developing faster, more efficient, and smaller electronic components to power these technologies. For example, in February 2023, Transcelestial received a $10 million funding injection to enhance laser technology, facilitating the advancement of internet infrastructure in both Asia and the United States. The U.S. government has recognized the importance of semiconductor manufacturing to national security and economic competitiveness. Initiatives like the CHIPS Act of 2022 (Creating Helpful Incentives to Produce Semiconductors for America) have provided financial incentives and funding for semiconductor research, development, and domestic production. This support has encouraged investments from both the public and private sectors.

Furthermore, the USA is at the forefront of semiconductor innovation, with many leading semiconductor companies and research institutions located in the country. Continuous research and development efforts have led to the creation of new materials, manufacturing processes, and semiconductor designs, further driving growth in the sector. For instance, in September 2023, the U.S. National Science Foundation revealed 24 research and educational initiatives, backed by a $45.6 million investment, which includes contributions from the "CHIPS and Science Act of 2022." These projects aim to accelerate advancements in semiconductor technology, manufacturing, and workforce development. The NSF Future of Semiconductors (FuSe) program supports these initiatives through a collaborative effort involving NSF and four corporations: Ericsson, IBM, Intel, and Samsung.

Semiconductor Materials Market Scope:

Segmentation:

• By Type
  • Fabrication
  • Packaging
• By Material
  • Silicon
  • Germanium
  • Selenium
  • Others
• By End-Users
  • Automotives
  • Consumer Electronics
  • Medical
  • Communications
  • Others
• By Geography
  • Americas
    • By Type
    • By Material
    • By End Users
    • By Country
      • USA
      • Others
  • Europe Middle East and Africa
    • By Type
    • By Material
    • By End Users
    • By Country
      • Germany
      • UK
      • France
      • Others
  • Asia Pacific
    • By Type
    • By Material
    • By End Users
    • By Country
      • China
      • Japan
      • Taiwan
      • South Korea
      • Others