Semiconductor Market Size Set to Grow by $112.8 billion from 2024-2028
July 4, 2024 | PRNewswireEstimated reading time: 2 minutes
The global semiconductor market size is estimated to grow by USD 112.8 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 3.42% during the forecast period. Growing adoption of IoT devices is driving market growth, with a trend towards increasing adoption of sustainability manufacturing. However, supply-demand gap in semiconductor industry poses a challenge. Key market players include Analog Devices Inc., Broadcom Inc., Infineon Technologies AG, Intel Corp., MediaTek Inc., Microchip Technology Inc., Micron Technology Inc., NVIDIA Corp., NXP Semiconductors NV, ON Semiconductor Corp., 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., and Wolfspeed Inc..
Key Market Trends Fueling Growth
The semiconductor industry requires significant energy and water resources, with a single fabrication plant consuming approximately 1 terawatt-hour of energy annually and two-to-four million gallons of ultra-pure water daily. The increasing demand for semiconductors, driven by emerging technologies like 5G, AI, and IoT, necessitates production growth. Industry leaders, such as TSMC and Intel, are addressing sustainability concerns through water recycling, diverse water sources, and pollution prevention. By 2030, Intel aims to conserve 60 billion gallons of water and 4 billion kWh of energy, while using 100% renewable energy. Vendors' sustainability efforts enhance their brand image, contributing to the global semiconductor market's growth.
The semiconductor market is experiencing significant growth with the increasing adoption of technology in various industries. The demand for advanced technologies such as Artificial Intelligence, Machine Learning, and Internet of Things (IoT) is driving the market. The automotive industry is also a major contributor, with the integration of semiconductors in electric vehicles and autonomous driving systems. The market is competitive with players like Powerexpress, Mosfet, and Discreteset producing and supplying semiconductors. The trend towards miniaturization and higher performance is leading to the development of new technologies like 5G and SUPPLY-chain management is crucial for companies to meet the growing demand. The semiconductor market is expected to continue its upward trajectory in the coming years.
Market Challenges
The semiconductor industry faces challenges due to high demand for chips in sectors like IoT, AI, data centers, and smart technologies. This demand exceeds supply, causing price increases and longer lead times for manufacturers. Transitions to advanced manufacturing nodes bring production challenges and yield issues, widening the supply-demand gap. These factors may impact the semiconductor market's growth during the forecast period.
The semiconductor market faces several challenges in the present scenario. The increasing complexity of semiconductor designs calls for advanced manufacturing processes and technologies. The cost of research and development is high, and the competition is intense. The demand for smaller, faster, and more energy-efficient chips is driving innovation. However, the market is also affected by economic and geopolitical factors, such as trade policies and supply chain disruptions. The semiconductor industry must adapt to these challenges to remain competitive and meet the evolving needs of consumers and businesses. The use of automation and digitalization can help improve efficiency and reduce costs. Collaboration and partnerships can also help share risks and resources. The semiconductor market is dynamic and requires continuous innovation and investment to stay ahead.
Suggested Items
Tata Electronics, Bosch Sign MoU for Strategic Collaboration in Electronics and Semiconductor Manufacturing
07/18/2025 | Tata ElectronicsTata Electronics, a leading player in the Indian electronics and semiconductor manufacturing sector, and Robert Bosch GmbH, a leading global supplier of technology and services, announced that they have signed a Memorandum of Understanding (MoU) to collaborate on several key areas within the electronics and semiconductor industries.
Fraunhofer IPMS, DIVE Optimize Semiconductor Processes with Cutting-Edge Measurement System
07/17/2025 | Fraunhofer IPMSThe Fraunhofer Institute for Photonic Microsystems IPMS, in collaboration with DIVE imaging systems GmbH, has achieved a major milestone in resource-efficient semiconductor manufacturing.
TI Honored by Volkswagen Group for Operational Excellence
07/16/2025 | Texas InstrumentsTexas Instruments (TI) received the prestigious “Operational Excellence” award at the annual Volkswagen Group Award 2025 in Wolfsburg, Germany.
Report: Broadcom Scraps $1 Billion Chip Investment in Spain
07/15/2025 | I-Connect007 Editorial TeamAmerican chipmaker Broadcom has pulled out of plans to invest in a microchip plant in Spain. According to a July 14 Reuters report, Europa Press, quoting anonymous sources, stated the action followed collapsed government talks but gave no further information.
Siemens Collaborates with SK keyfoundry to Launch 130nm Automotive Power Semiconductor Calibre PERC PDK
07/15/2025 | SiemensSiemens Digital Industries Software announced that SK keyfoundry, in collaboration with Korea Siemens EDA, has launched a 130nm automotive PDK (Process Design Kit) that is exclusively designed for use in Calibre® PERC™ software.