The Microelectronics Market is estimated to be valued at US$ 503,742.10 Million in 2022 and is expected to exhibit a CAGR Of 8 % over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
Microelectronics involves miniaturized devices and components that are found in electronic products. They include semiconductor devices such as integrated circuits (ICs), transistors, and diodes. Microelectronics finds application in various end-use verticals ranging from automotive, industrial, and consumer electronics. Increasing applications of microelectronics in advanced technologies such as Internet of Things (IoT), artificial intelligence (AI) and 5G networks are expected to drive the market growth over the forecast period.
Growing demand for IoT devices is expected to propel the growth of the microelectronics market. IoT connects physical devices embedded with sensors, software, and network connectivity that enables exchange of data. This steady growth in IoT is fueling the demand for microelectronics as most IoT devices use microchips in their design. Moreover, increasing adoption of AI across industries is another major factor contributing to market growth. AI runs on microchips and requires huge volumes of data processing which is only possible using advanced microelectronics. Further, development of 5G networks will augment the demand for microchips during the forecast period as 5G will require higher processing power and capabilities from microchips.
The microelectronics market is dominated by the semiconductor manufacturing sub-segment, which accounts for over 55% of the total market share. This is because semiconductors are a fundamental building block of microelectronics and are used in almost all electronic products, ranging from computers and smartphones to automobiles and home appliances. The demand for high-performance semiconductors is driven by continuous innovations in consumer electronics and autonomous systems.
Political: Trade restrictions imposed by the US government on Chinese tech firms impact global supply chains of microchips and related components.
Economic: High R&D investments and capital expenditures required to build semiconductor fabs favor large players and raise entry barriers for new entrants.
Social: Growing consumer demand for smarter and connected devices drives innovations in microchips for applications in IoT, AV, and cloud computing.
Technological: Advancements in technologies such as 5G, AI, and quantum computing are enabling new use cases for innovative semiconductor architectures and materials.
The global microelectronics market is expected to witness high growth, exhibiting CAGR of 8.00% over the forecast period of 2022-2030, due to increasing penetration of IoT devices and adoption of automated systems. The market size is estimated to reach US$ 1,144,772.89 million by 2030 from US$ 503,742.10 million in 2022.
The Asia Pacific region dominates the global microelectronics market and is estimated to continue its dominance during the forecast period. This is attributed to the presence of major semiconductor manufacturing hubs and electronic product OEMs in countries such as China, Taiwan, South Korea and Japan.
Key players operating in the microelectronics market are Honeywell International Inc., United Technologies Corporation, Crestron Electronics, Inc., Cisco Systems, Inc., Ingersoll-Rand PLC, Schneider Electric SE., Johnson Controls Inc., Acuity Brands, Inc., ADT Corporation, Control4 Corporation, and Others. Leading players are focusing on developing innovative semiconductor materials and compact chiplet designs to gain competitive advantage.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it